An Interactive Multiobjective Optimization Approach to Supplier Selection and Order Allocation Problems Using the Concept of Desirability

In supply chain management, selecting the right supplier is one of the most important decision-making processes for improving corporate competitiveness. In particular, when a buyer considers selecting multiple suppliers, one should consider the issue of order allocation with supplier selection. In t...

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Bibliographic Details
Published inInformation (Basel) Vol. 9; no. 6; p. 130
Main Authors Lee, Pyoungsoo, Kang, Sungmin
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 23.05.2018
Subjects
Component and supplier management
Decision making
desirability function
interactive approach
Mathematical programming
multiobjective optimization
Multiple objective analysis
Optimization
Optimization techniques
order allocation
supplier selection
Suppliers
Supply chain management
Supply chains
Weighting methods
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Summary:In supply chain management, selecting the right supplier is one of the most important decision-making processes for improving corporate competitiveness. In particular, when a buyer considers selecting multiple suppliers, one should consider the issue of order allocation with supplier selection. In this article, an interactive multiobjective optimization approach is proposed for the supplier selection and order allocation problem. Also, the concept of desirability is incorporated into the optimization model to take into account the principles of diminishing marginal utility. The results are presented by comparing them with the solutions from the weighting methods. This study shows the advantage of the proposed method in that the decision-maker directly checks the degree of desirability and learns his/her preference structure through improved solutions.
ISSN:2078-2489
2078-2489
DOI:10.3390/info9060130