A decision support system for supplier selection and order allocation in stochastic, multi-stakeholder and multi-criteria environments

James Scott*, William Ho, Prasanta K. Dey, Srinivas Talluri

*Corresponding author for this work

Research output: Contribution to journalArticle

Abstract

Integrated supplier selection and order allocation is an important decision for both designing and operating supply chains. This decision is often influenced by the concerned stakeholders, suppliers, plant operators and customers in different tiers. As firms continue to seek competitive advantage through supply chain design and operations they aim to create optimized supply chains. This calls for on one hand consideration of multiple conflicting criteria and on the other hand consideration of uncertainties of demand and supply. Although there are studies on supplier selection using advanced mathematical models to cover a stochastic approach, multiple criteria decision making techniques and multiple stakeholder requirements separately, according to authors' knowledge there is no work that integrates these three aspects in a common framework. This paper proposes an integrated method for dealing with such problems using a combined Analytic Hierarchy Process-Quality Function Deployment (AHP-QFD) and chance constrained optimization algorithm approach that selects appropriate suppliers and allocates orders optimally between them. The effectiveness of the proposed decision support system has been demonstrated through application and validation in the bioenergy industry.

Original languageEnglish
Pages (from-to)226-237
Number of pages12
JournalInternational Journal of Production Economics
Volume166
Early online date20 Nov 2014
DOIs
Publication statusPublished - 1 Aug 2015

Bibliographical note

© 2014 The Authors. Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/3.0/)

Funding: ESRC ES/H046224/1; RES-187-24-0005

Keywords

  • decision support system
  • multi-criteria
  • multi-stakeholder
  • order allocation
  • stochastic
  • supplier selection

Fingerprint Dive into the research topics of 'A decision support system for supplier selection and order allocation in stochastic, multi-stakeholder and multi-criteria environments'. Together they form a unique fingerprint.

  • Cite this