Sustainable Supplier Selection and Order Allocation Applying Metaheuristic Algorithms

Abstract

Supplier selection, order allocation and production planning are important and challenging decisions in supply chain management. There are many studies on mentioned topics separately. In this paper, a multi-objective mathematical model proposed to optimize a sustainable supplier selection problem with order allocation and production planning simultaneously. This study considers a multi-supplier, multi-product, multi-item and multi-period supply chain. The designed mathematical model seeks to maximize total profit and minimize unsatisfied demand and total risk along with enforcing sustainability criteria in selecting suppliers. Supplier selection is a virtual process in every manufacturing company. On the other hand, this research considers all the important aspects of this problem. Therefore, the proposed framework can be implemented in many different companies like electronic, food, chemical industry. The proposed model is solved utilizing two metaheuristic algorithms including NSGA II and MOPSO. Moreover, algorithms are tuned utilizing Taguchi analysis. Furthermore, ten sample problems are generated and results are compared to identify the best algorithm for the proposed model.