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Modeling synergies in multi-criteria supplier selection and order allocation: An application to commodity tradingAuthor-Name: Sodenkamp, Mariya A

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  • Tavana, Madjid
  • Di Caprio, Debora

Abstract

We propose a novel meta-approach to support collaborative multi-objective supplier selection and order allocation (SSOA) decisions by integrating multi-criteria decision analysis and linear programming (LP). The proposed model accounts for suppliers’ performance synergy effects within a hierarchical decision structure. It incorporates both heterogeneous objective data and subjective judgments of the decision makers (DMs) representing various groups with different voting powers (VPs). We maximize the total value of purchasing (TVP) by optimizing order quantity assignment to suppliers and taking into consideration their synergies encountered in different time horizons. We apply the proposed model to a contractor selection and order quantity assignment problem in an agricultural commodity trading (ACT) company. We maximize the strategic effectiveness of both the customers and the suppliers, minimize risks, increase the degree of cooperation between trading partners on all levels of supply chain integration, enhance transparent knowledge sharing and aggregation, and support collaborative decision making.

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  • Tavana, Madjid & Di Caprio, Debora, 2016. "Modeling synergies in multi-criteria supplier selection and order allocation: An application to commodity tradingAuthor-Name: Sodenkamp, Mariya A," European Journal of Operational Research, Elsevier, vol. 254(3), pages 859-874.
    • Handle: RePEc:eee:ejores:v:254:y:2016:i:3:p:859-874
    DOI: 10.1016/j.ejor.2016.04.015
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    4. Deyun Zhou & Yongchuan Tang & Wen Jiang, 2017. "An Improved Belief Entropy and Its Application in Decision-Making," Complexity, Hindawi, vol. 2017, pages 1-15, March.
    5. Sourour Aouadni & Jalel Euchi, 2022. "Using Integrated MMD-TOPSIS to Solve the Supplier Selection and Fair Order Allocation Problem: A Tunisian Case Study," Logistics, MDPI, vol. 6(1), pages 1-18, January.
    6. Xiaoping Fang & Zhang Ji & Zhiya Chen & Weiya Chen & Chao Cao & Jinrong Gan, 2020. "Synergy Degree Evaluation of Container Multimodal Transport System," Sustainability, MDPI, vol. 12(4), pages 1-26, February.
    7. Maimouna Diouf & Choonjong Kwak, 2018. "Fuzzy AHP, DEA, and Managerial Analysis for Supplier Selection and Development; From the Perspective of Open Innovation," Sustainability, MDPI, vol. 10(10), pages 1-17, October.
    8. Ghadimi, Pezhman & Ghassemi Toosi, Farshad & Heavey, Cathal, 2018. "A multi-agent systems approach for sustainable supplier selection and order allocation in a partnership supply chain," European Journal of Operational Research, Elsevier, vol. 269(1), pages 286-301.

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