A Mixed Integer Programming Model for Supplier Selection and Order Allocation Problem with Fuzzy Multiobjective

Abstract

A mixed integer programming model is proposed to solve supplier selection and order allocation problem for a manufacturer. In this model, quality, delivery performance, and purchasing cost are chosen as three criteria to select suppliers and set as objectives. Inventory level, goods flow balance, service level, supply ability, and marketing demand are considered as constraints. In the proposed model, the three objectives have different weights which are given by experts. However, the experts score the weight by many subjective factors. So, the fuzzy analytic hierarchy process (FAHP) based approach is used to calculate the weighted values. In the end, a case study illustrates the advantage of weighted values solved by FAHP. And the result shows that a weighted model is more advantageous for supplier selection and order allocation.