Resilient supplier selection and order allocation under uncertainty

Abstract

Increasing the number of disasters around the world will decrease the performance of the supply chain. The decision makers should design resilience supply chain network which could encounter with disruptions. This paper develops an integrated resilience model of supplier selection and order allocation. Resiliency measures including quality, delivery, technology, continuity, environmental competences are explored for determining the Resilience Weight of suppliers. Fuzzy DEMATEL and ANP methods are applied to find overall performance of each supplier. Then, the developed mathematical model maximizes overall performance of suppliers while minimizes total cost of network. The proposed mathematical model helps the decision makers to select supplier and allocate the optimum order quantities by considering shortage. Since the disruptive incidents are inevitable events in real world problems, the impact of disruptions on suppliers, manufactures and retailers has been considered in the proposed model. Inherent uncertainties of parameters are taken into account to increase the compatibility of the approach with realistic environments. To tackle the uncertainty and multi-objectiveness of the proposed model, interval Method and TH aggregation function is adapted. The proposed model is validated through application to a real case study in a furniture company. Results demonstrate the usefulness and applicability of the proposed model.