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Gresilient supplier assessment and order allocation planning

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Companies are under pressure to re-engineer their supply chains to ‘go green’ while simultaneously improving their resilience to cope with unexpected disruptions where the supplier selection decision plays a strategic… Click to show full abstract

Companies are under pressure to re-engineer their supply chains to ‘go green’ while simultaneously improving their resilience to cope with unexpected disruptions where the supplier selection decision plays a strategic role. We present a new approach to supplier evaluation and allocating the optimal order quantity from each supplier with respect to green and resilience (gresilience) characteristics. An integrated framework that considers traditional business, green and resilience criteria and sub-criteria was developed, followed by a calculation of importance weight of criteria and sub-criteria using analytical hierarchy process (AHP). We evaluate suppliers using the technique for order of preference by similarity to ideal solution (TOPSIS). The obtained weights from AHP and TOPSIS were integrated into a developed multi-objective programming model used as an order allocation planner and the ε-constraint method was used to solve the multi-objective optimization problem. TOPSIS was applied to select the final Pareto solution based on its closeness from the ideal solution. The applicability and effectiveness of the proposed approach was illustrated using a real case study through a comparatively meaningful ranking of suppliers. The study provides a helpful aid for managers seeking to improve their supply chain resilience along with ‘go green’ responsibilities.

Keywords: gresilient supplier; order; resilience; supplier; order allocation

Journal Title: Annals of Operations Research
Year Published: 2021

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