A hybrid MCDM-FMOO approach for sustainable supplier selection and order allocation

Ahmed Mohammed*, Irina Harris, Kannan Govindan

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

144 Citations (Scopus)

Abstract

The growing interest in sustainability increases the challenges for decision makers in selecting the sustainable suppliers in which consider economic, environmental and social aspects. Particularly, decision makers are being increasingly motivated to improve their supply chain activities in coping efficiently with the objectives of sustainable development. Where the era of sustainability threatens the current supply chain partners to either cope with the new regulations of sustainability or leave the field for new players. Notwithstanding, most of the recent studies considered economic and green criteria in handling sustainable supplier selection and order allocation (SSS/OA) problems overlooking the social criteria which represents the third pillar of sustainability. This work aims at putting forward a hybrid Multi Criteria Decision-Making (MCDM)-Fuzzy Multi-Objective Optimization (FMOO) approach for a sustainable supplier selection and order allocation problem by considering economic, environmental and social criteria. Thus, an integrated Fuzzy AHP-Fuzzy TOPSIS is proposed to assess and rank suppliers according to three sets of criteria (i.e. conventional, green and social). A Multi-Objective Optimization Model (MOOM) is developed for choosing suppliers and allocating the optimal order quantities. To cope with the multiple uncertainties in the input data, the MOOM is reformulated into a Fuzzy Multi-Objective Optimization Model. The ε-constraint and LP-metrics approaches are used to reveal two sets of Pareto solutions based on the developed FMOOmodel. Finally, TOPSIS is applied to select the final Pareto solution that is closest to the ideal solution and furthest from the nadir solution. The effectiveness and the applicability of the developed hybrid MCDM-FMOO approach is demonstrated through a case study.

Original languageEnglish
Pages (from-to)171-184
Number of pages14
JournalInternational Journal of Production Economics
Volume217
DOIs
Publication statusPublished - Nov 2019

Bibliographical note

Funding Information:
The authors acknowledge the financial support from the European Regional Development Fund through the Welsh Government for ASTUTE 2020 (Advanced Sustainable Manufacturing Technologies) to facilitate this work. The authors would like to thank the anonymous referees whose thorough reviews and insightful comments made a valuable contribution to this article.

Publisher Copyright:
© 2019 Elsevier B.V.

Keywords

  • Fuzzy sets
  • Multi criteria decision-making
  • Multi-objective optimization
  • Supplier selection and order allocation
  • Sustainability

ASJC Scopus subject areas

  • General Business,Management and Accounting
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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