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Article
Publication date: 26 September 2023

Seyed Mojtaba Taghavi, Vahidreza Ghezavati, Hadi Mohammadi Bidhandi and Seyed Mohammad Javad Mirzapour Al-e-Hashem

This paper aims to minimize the mean-risk cost of sustainable and resilient supplier selection, order allocation and production scheduling (SS,OA&PS) problem under uncertainty of…

Abstract

Purpose

This paper aims to minimize the mean-risk cost of sustainable and resilient supplier selection, order allocation and production scheduling (SS,OA&PS) problem under uncertainty of disruptions. The authors use conditional value at risk (CVaR) as a risk measure in optimizing the combined objective function of the total expected value and CVaR cost. A sustainable supply chain can create significant competitive advantages for companies through social justice, human rights and environmental progress. To control disruptions, the authors applied (proactive and reactive) resilient strategies. In this study, the authors combine resilience and social responsibility issues that lead to synergy in supply chain activities.

Design/methodology/approach

The present paper proposes a risk-averse two-stage mixed-integer stochastic programming model for sustainable and resilient SS,OA&PS problem under supply disruptions. In this decision-making process, determining the primary supplier portfolio according to the minimum sustainable-resilient score establishes the first-stage decisions. The recourse or second-stage decisions are: determining the amount of order allocation and scheduling of parts by each supplier, determining the reactive risk management strategies, determining the amount of order allocation and scheduling by each of reaction strategies and determining the number of products and scheduling of products on the planning time horizon. Uncertain parameters of this study are the start time of disruption, remaining capacity rate of suppliers and lead times associated with each reactive strategy.

Findings

In this paper, several numerical examples along with different sensitivity analyses (on risk parameters, minimum sustainable-resilience score of suppliers and shortage costs) were presented to evaluate the applicability of the proposed model. The results showed that the two-stage risk-averse stochastic mixed-integer programming model for designing the SS,OA&PS problem by considering economic and social aspects and resilience strategies is an effective and flexible tool and leads to optimal decisions with the least cost. In addition, the managerial insights obtained from this study are extracted and stated in Section 4.6.

Originality/value

This work proposes a risk-averse stochastic programming approach for a new multi-product sustainable and resilient SS,OA&PS problem. The planning horizon includes three periods before the disruption, during the disruption period and the recovery period. Other contributions of this work are: selecting the main supply portfolio based on the minimum score of sustainable-resilient criteria of suppliers, allocating and scheduling suppliers orders before and after disruptions, considering the balance constraint in receiving parts and using proactive and reactive risk management strategies simultaneously. Also, the scheduling of reactive strategies in different investment modes is applied to this problem.

Article
Publication date: 2 November 2021

Pengyun Zhao, Shoufeng Ji and Yaoting Xue

The purpose of this paper is to propose an innovative integration method based on decision-theoretic rough set and the extended VlseKriterijuska Optimizacija I Komoromisno Resenje…

Abstract

Purpose

The purpose of this paper is to propose an innovative integration method based on decision-theoretic rough set and the extended VlseKriterijuska Optimizacija I Komoromisno Resenje (VIKOR) methods to address the resilient-sustainable supplier selection and order allocation (SS/OA) problem.

Design/methodology/approach

Specifically, a two-stage approach is designed in this paper. First, the decision-theoretic rough set is employed to calculate the rough number for coping with the subjective uncertainty of data and assigning the weights for a resilient-sustainable evaluation criterion. On this basis, the supplier resilient-sustainable performance is ranked in combination with the extended VIKOR method. Second, a novel multi-objective optimization model is proposed that applies an improved genetic algorithm to select the resilient-sustainable supplier and allocate the corresponding order quantity under a multi-tier supplier network.

Findings

The results reveal that joint consideration of resilience and sustainability is essential in the SS/OA process. The method proposed in this study based on decision-theoretic rough sets and the extended VIKOR method can handle imprecise information flexibly, reduce information loss and obtain acceptable solutions for decision-makers. Numerical cases validate that this integrated approach can combine resilience and sustainability for effective and efficient SS/OA.

Practical implications

This paper provides industry managers with a new perspective on SS/OA from a resilience and sustainability perspective as a basis for best practices for industry resilience and sustainability. The proposed method helps to evaluate the resilient-sustainable performance of potential suppliers, which is applicable to solving real-world SS/OA problems and has important practical implications for the resilient-sustainable development of supply chains.

Originality/value

The two interrelated priorities of resilience and sustainability have emerged as key strategic challenges in SS/OA issues. This paper is the first study of this issue that uses the proposed integrated approach.

Article
Publication date: 13 July 2023

S.M. Taghavi, V. Ghezavati, H. Mohammadi Bidhandi and S.M.J. Mirzapour Al-e-Hashem

This paper proposes a two-level supply chain including suppliers and manufacturers. The purpose of this paper is to design a resilient fuzzy risk-averse supply portfolio selection

Abstract

Purpose

This paper proposes a two-level supply chain including suppliers and manufacturers. The purpose of this paper is to design a resilient fuzzy risk-averse supply portfolio selection approach with lead-time sensitive manufacturers under partial and complete supply facility disruption in addition to the operational risk of imprecise demand to minimize the mean-risk costs. This problem is analyzed for a risk-averse decision maker, and the authors use the conditional value-at-risk (CVaR) as a risk measure, which has particular applications in financial engineering.

Design/methodology/approach

The methodology of the current research includes two phases of conceptual model and mathematical model. In the conceptual model phase, a new supply portfolio selection problem is presented under disruption and operational risks for lead-time sensitive manufacturers and considers resilience strategies for risk-averse decision makers. In the mathematical model phase, the stages of risk-averse two-stage fuzzy-stochastic programming model are formulated according to the above conceptual model, which minimizes the mean-CVaR costs.

Findings

In this paper, several computational experiments were conducted with sensitivity analysis by GAMS (General algebraic modeling system) software to determine the efficiency and significance of the developed model. Results show that the sensitivity of manufacturers to the lead time as well as the occurrence of disruption and operational risks, significantly affect the structure of the supply portfolio selection; hence, manufacturers should be taken into account in the design of this problem.

Originality/value

The study proposes a new two-stage fuzzy-stochastic scenario-based mathematical programming model for the resilient supply portfolio selection for risk-averse decision-makers under disruption and operational risks. This model assumes that the manufacturers are sensitive to lead time, so the demand of manufacturers depends on the suppliers who provide them with services. To manage risks, this model also considers proactive (supplier fortification, pre-positioned emergency inventory) and reactive (revision of allocation decisions) resilience strategies.

Article
Publication date: 9 August 2019

Md Tanweer Ahmad and Sandeep Mondal

With the increasing competition among the industries, they remain under pressure as how to select the best set of suppliers for the competitive edge. Often, it has been…

Abstract

Purpose

With the increasing competition among the industries, they remain under pressure as how to select the best set of suppliers for the competitive edge. Often, it has been challenging to develop an effective set of suppliers due to varied and asymmetric mode of criteria. The purpose of this paper is to develop a responsive chain under original equipment manufacturer (OEM).

Design/methodology/approach

This study proposes a responsive chain under a two-echelon system (TES) of OEM, which needs to collaborate with a set of suppliers at each echelon through an integrated methodology of AHP and TOPSIS. According to the OEM’s criteria, demands and suppliers’ capacity vary with time, therefore they are not static for a longer period. Hence, supplier selection (SS) problem possesses dynamicity in real practice. For this, MILP is used for finding optimal order quantities based on the optimal ranking at each echelon in the multi-period scenario. Subsequently, sensitivity analysis (SA) is conducted through Taguchi method of parameter design (TMPD) to achieve an optimal ranking in the TES.

Findings

This study suggests optimal criteria’s weight, percentage contribution, and flexibility for the suppliers and manufacturers involving through maximum demand strategy at each echelon of OEM. It also provides robust group of suppliers and manufacturers in the TES through optimal ranking and simultaneously in the order allocations. Furthermore, it restricts the number of suppliers and manufactures at each echelon through proposed methodology to obtain the solution in a very short running time.

Originality/value

To validate this model, a real data set for the case of chain conveyor company is used. This adopted methodology can suggest the organization that how the approach should be implemented.

Details

Benchmarking: An International Journal, vol. 26 no. 8
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 8 February 2022

Hassan Ali, Jingwen Zhang, Sheng Liu and Muhammad Shoaib

Due to the fierce market competition, many organizations seek global suppliers because of lower procurement costs and better product quality. However, selecting suitable global…

Abstract

Purpose

Due to the fierce market competition, many organizations seek global suppliers because of lower procurement costs and better product quality. However, selecting suitable global suppliers is one of the complicated decision-making tasks for decision-makers due to the involvement of various qualitative and quantitative factors. The primary purpose of this research is to design an integrated approach for global supplier selection and order allocation in the context of developing an environment-friendly supply chain under data uncertainty.

Design/methodology/approach

Initially, the fuzzy analytical hierarchy process (FAHP) is used to calculate the selected criteria weights. After that, the weights obtained from FAHP are inserted into the fuzzy technique for order preference by similarity to ideal solution (FTOPSIS) to examine the performance of selected suppliers and determine their final ranks. Finally, the obtained results from FTOPSIS are incorporated into the multi-choice goal programming (MCGP) model, which involves multi-aspiration levels to allocate the optimal order quantity to the selected global suppliers.

Findings

A real-time case study of the automotive industry is presented to demonstrate the efficiency and practicality of the suggested approach. The case study and sensitivity analysis results show that the proposed model effectively tackles suppliers' evaluation and order allocation data uncertainty.

Originality/value

Incorporation of risks, environmental management and economic factors during global supplier selection in the automotive sector has not been given much attention in the past literature. So, this research aims to fulfill the gap by developing an integrated approach that can tackle data uncertainty effectively.

Details

Kybernetes, vol. 52 no. 8
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 11 May 2020

Ahmet Çalık

This study aims to create a model for defining the best supplier for a company and allocating order that considers sustainability criteria beyond the traditional selection

Abstract

Purpose

This study aims to create a model for defining the best supplier for a company and allocating order that considers sustainability criteria beyond the traditional selection criteria.

Design/methodology/approach

In this paper, sustainable supplier Selection and order allocation (SSS and OA) problem is managed based on a multiobjective linear programming (MOLP) model that incorporates sustainability dimensions. First, an interval type-2 fuzzy analytic hierarchy process (FAHP) method is applied for the main criteria and subcriteria to determine the weight of the selected criteria. Then, these values are used to convert the proposed MOLP model into a single-objective model.

Findings

The economic criterion (0.438) was the most important criterion for SSS in the agricultural machinery sector, followed by the social criterion (0.333) and the environmental criterion (0.229).

Practical implications

The results show that the proposed framework can be utilized by the agricultural machinery industry for SSS and OA.

Originality/value

The proposed framework provides to develop an integrated model by interval type-2 fuzzy sets for SSS and OA, taking into account the relationships between qualitative and quantitative evaluation criteria with different priorities. The validity of the developed model is confirmed by a case study of the agricultural machinery industry in Turkey.

Details

Journal of Enterprise Information Management, vol. 33 no. 5
Type: Research Article
ISSN: 1741-0398

Keywords

Article
Publication date: 15 March 2024

Lin Sun, Chunxia Yu, Jing Li, Qi Yuan and Shaoqiong Zhao

The paper aims to propose an innovative two-stage decision model to address the sustainable-resilient supplier selection and order allocation (SSOA) problem in the single-valued…

Abstract

Purpose

The paper aims to propose an innovative two-stage decision model to address the sustainable-resilient supplier selection and order allocation (SSOA) problem in the single-valued neutrosophic (SVN) environment.

Design/methodology/approach

First, the sustainable and resilient performances of suppliers are evaluated by the proposed integrated SVN-base-criterion method (BCM)-an acronym in Portuguese of interactive and multi-criteria decision-making (TODIM) method, with consideration of the uncertainty in the decision-making process. Then, a novel multi-objective optimization model is formulated, and the best sustainable-resilient order allocation solution is found using the U-NSGA-III algorithm and TOPSIS method. Finally, based on a real-life case in the automotive manufacturing industry, experiments are conducted to demonstrate the application of the proposed two-stage decision model.

Findings

The paper provides an effective decision tool for the SSOA process in an uncertain environment. The proposed SVN-BCM-TODIM approach can effectively handle the uncertainties from the decision-maker’s confidence degree and incomplete decision information and evaluate suppliers’ performance in different dimensions while avoiding the compensatory effect between criteria. Moreover, the proposed order allocation model proposes an original way to improve sustainable-resilient procurement values.

Originality/value

The paper provides a supplier selection process that can effectively integrate sustainability and resilience evaluation in an uncertain environment and develops a sustainable-resilient procurement optimization model.

Details

Kybernetes, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 17 December 2021

Sudipta Ghosh, Madhab Chandra Mandal and Amitava Ray

Supplier selection (SS) is one of the prime competencies in a sourcing decision. Taking into account the key role played by suppliers in facilitating the implementation of green…

1260

Abstract

Purpose

Supplier selection (SS) is one of the prime competencies in a sourcing decision. Taking into account the key role played by suppliers in facilitating the implementation of green supply chain management (GSCM), it is somewhat surprising that very little research attention has been imparted to the development of a strategic sourcing model for GSCM. This research aims to develop a strategic sourcing framework in which supplier organizations are prioritized and ranked based on their GSCM performance. Accordingly, the benchmark organization is identified and its strategy is explored for GSCM performance improvement.

Design/methodology/approach

The research develops an innovative GSCM performance evaluation framework using six parameters, namely, investment in corporate social responsibility, investment in research and development, utilization of renewable energy, total energy consumption, total carbon-di-oxide emissions and total waste generation. An integrated multicriteria decision-making (MCDM) approach is proposed in which the entropy method calculates criteria weights. The Complex Proportional Assessment (COPRAS) and the Grey relational analysis (GRA) methods are used to rank supplier organizations based on their performance scores. A real-world case of green supplier selection (GSS) is considered in which five leading India-based automobile manufacturing organizations (Supplier 1, Supplier 2, Supplier 3, Supplier 4 and Supplier 5) are selected. Surveys with industry experts at the strategic, tactical, and operational levels are carried out to collect relevant data.

Findings

The results reveal that total carbon dioxide emission is the most influential parameter, as it gains the highest weight. On the contrary, investment in research and development, and total waste generation have no significant impact on GSCM performance. Results show that Supplier 5 secures the top rank. Hence, it is the benchmark organization.

Research limitations/implications

The proposed methodology offers an easy and comprehensive approach to sourcing decisions in the field of GSCM. The entropy weight-based COPRAS and GRA methods offer an error-free channel of decision-making and can be proficiently used to outrank various industrial sectors based on their GSCM performances. This research is specific to the automobile manufacturing supply chain. Therefore, research outcomes may vary across supply chains with distinct characteristics.

Practical implications

The basic propositions of this research are based on a real-world case. Hence, the research findings are practically feasible. The less significant parameters identified in this study would enable managers to impart more attention to vulnerable areas for improvement. This research may help policymakers identify the influential parameters for effective GSCM implementation. As this research considers all aspects of sustainability, the strategies of the benchmark supplier have a direct impact on organizations' overall sustainability. The study would enable practitioners to make various strategies for GSCM performance improvement and to develop a cleaner production system.

Originality/value

The originality of this research lies in the consideration of both economic, social, environmental and operational aspects of sustainability for assessing the GSCM performance of supplier organizations. Quantitative criteria are considered so that vagueness can be removed from the decision. The use of an integrated grey-based approach for developing a strategic sourcing model is another unique feature of this study.

Details

Benchmarking: An International Journal, vol. 29 no. 10
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 24 November 2020

Avinash Bagul and Indrajit Mukherjee

This paper attempts to address three key objectives. The primary aim is to enhance sourcing strategy for a centralized and coordinated multitier multiple suppliers networks with…

Abstract

Purpose

This paper attempts to address three key objectives. The primary aim is to enhance sourcing strategy for a centralized and coordinated multitier multiple suppliers networks with uncertain demand and supplier failure risks. The second objective is to enumerate all possible practical supplier(s) failure scenarios and quantify expected loss of demand cost. Finally, the work illustrates statistical experimentation to identify “influential” variables that can significantly impact the expected supply network and loss costs.

Design/methodology/approach

A seven-step solution framework is proposed to derive an optimal sourcing strategy for the specific network configuration with varied supplier failure scenarios. Five distinct models are formulated to address all possible scenarios of supplier failure events. Mixed-integer nonlinear programming technique is used to derive expected supply network cost and loss cost. The solution framework is verified using a real-life case.

Findings

A cross-case analysis indicates that an increase in suppliers' failure risk (SFR) probabilities or customer demand rate increases the expected loss of demand costs for a multitier supply network. Besides, an increase in unit component prices increases the expected supply network cost.

Research limitations/implications

A two-tier automotive supply network for a single product is considered for all case studies.

Practical implications

The enhanced strategy can facilitate practitioners enumerate different supply network failure scenarios and implement the best solution.

Originality/value

There is no evidence of earlier research to derive optimal sourcing strategy for a centralized, coordinated multitier multiple supplier's network, considering demand uncertainties and SFR.

Details

International Journal of Productivity and Performance Management, vol. 71 no. 1
Type: Research Article
ISSN: 1741-0401

Keywords

Article
Publication date: 5 December 2018

Ahmed Mohammed, Irina Harris and Abdulsalam Dukyil

Vendor selection is the main activity in a sourcing decision, which is a strategic decision in that it leads enterprises to eliminate costs and improve their performance. However…

Abstract

Purpose

Vendor selection is the main activity in a sourcing decision, which is a strategic decision in that it leads enterprises to eliminate costs and improve their performance. However, an inappropriate selection may compromise the financial and operational status of the enterprise. But vendor selection is a complex, multi-criteria decision-making process because different and conflicting criteria have to be considered and assessed in order to find consistent suppliers. Consequently, evaluating and selecting the best vendor is the key to successful business. Traditionally, vendors are normally selected on the basis of traditional criteria (TC), such as costs and quality, neglecting resilience criteria (RC) (e.g. agility and flexibility). Thus, enterprises ultimately realize that a selecting method which involves TC as the only ones is inefficient and needs to be changed. The paper aims to discuss this issue.

Design/methodology/approach

This study was set in motion by a problem in practice. It aims to provide a user-friendly decision-making tool for selecting the best vendor from a group which submitted their tenders for implementing a proposed radio frequency identification (RFID)-based passport tracking system (Dukyil et al., 2017). The main traditional and resilience (“trasilience” henceforth) selection criteria were identified in a unified framework in collaboration with experts in the institution. Next, the Decision-Making Trial and Evaluation Laboratory (DEMATEL) algorithm was used to determine the relative importance of each criterion and the weights thus obtained were integrated into the ELimination Et Choix Traduisant la REalité (ELECTRE) algorithm. The Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) algorithm was also applied, to evaluate the performance of vendors and to select the best one. The qualitative evaluation of the criteria and the vendors was based on four decision makers. Finally, the Spearman’s rank correlation coefficient (SRCC) approach was applied to obtain the statistical difference between the ranking orders obtained from the two algorithms.

Findings

The efficiency of the proposed decision-making tool was evident from the real-case study of six tenders submitted for implementing a RFID-based passport tracking system. The SRCC also turned out a “very strong” association value between TOPSIS and ELECTRE.

Practical implications

The developed trasilient decision-making tool can easily be used to solve similar vendor or supplier selection problem. Moreover, other criteria can be added to fit other cases. Later, the tool was made available to the institution under study for solving future evaluation problems.

Originality/value

The literature shows that none of the previous papers presented an integrated trasilient approach that considers RC and TC simultaneously. This study presents a new trasilience tool for selecting a vendor.

Details

Management Decision, vol. 57 no. 2
Type: Research Article
ISSN: 0025-1747

Keywords

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