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Supplier selection and order allocation model with disruption and environmental risks in centralized supply chain

Author

Listed:
  • Aida Rezaei

    (University of Tehran)

  • Amir Aghsami

    (University of Tehran
    K. N. Toosi University of Technology)

  • Masoud Rabbani

    (University of Tehran)

Abstract

Supply chain managers have realized that competition between supply chains has replaced competition between companies. In addition, with increasing disruptions and uncertainty in planning, companies need to be able to make informed decisions at risk. Coordination in the resilient supply chain and appropriate selection of suppliers play a key role in risky situations. In previous research, mainly the impact of resilience strategies in the decentralized supply chain has been investigated and ignored the reliability of suppliers in the decision-making process. Therefore, we provide an effective framework for selecting reliable suppliers and order allocation, which increases the supply chain's benefits by considering the risk reduction strategies and coordination between the buyer and the supplier. Thus, we optimized the problem of supplier selection and order allocation in a centralized supply chain using mixed-integer nonlinear programming models and risk reduction strategies. These strategies are protected suppliers, back-up suppliers, reserving additional capacity, emergency stock, and geographical separation. Also, by considering the failure mode and effects analysis technique and the risk priority number constraint, suppliers' reliability has been considered. A numerical example is solved with the exact method. In addition, the application of the proposed models in a case study has been investigated by the Grasshopper optimization algorithm. Based on the sensitivity analysis results, we found that the simultaneous use of risk reduction strategies in the models significantly reduces supply chain costs and increases its benefits. Also, considering the reliability constraints causes supply chain managers to choose suppliers with more desirable reliability.

Suggested Citation

  • Aida Rezaei & Amir Aghsami & Masoud Rabbani, 2021. "Supplier selection and order allocation model with disruption and environmental risks in centralized supply chain," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 12(6), pages 1036-1072, December.
    • Handle: RePEc:spr:ijsaem:v:12:y:2021:i:6:d:10.1007_s13198-021-01164-1
    DOI: 10.1007/s13198-021-01164-1
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    References listed on IDEAS

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    Cited by:

    1. Zahra Mohammadnazari & Amir Aghsami & Masoud Rabbani, 2023. "A hybrid novel approach for evaluation of resiliency and sustainability in construction environment using data envelopment analysis, principal component analysis, and mathematical formulation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4453-4490, May.
    2. Mehdi Keshavarz-Ghorabaee, 2023. "Sustainable Supplier Selection and Order Allocation Using an Integrated ROG-Based Type-2 Fuzzy Decision-Making Approach," Mathematics, MDPI, vol. 11(9), pages 1-33, April.
    3. Seyed Reza Abazari & Fariborz Jolai & Amir Aghsami, 2022. "Designing a humanitarian relief network considering governmental and non-governmental operations under uncertainty," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(3), pages 1430-1452, June.
    4. Rajiv Kumar Sharma, 2022. "Examining interaction among supplier selection strategies in an outsourcing environment using ISM and fuzzy logic approach," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(5), pages 2175-2194, October.
    5. Yongzheng Zhang & Chunming Ye & Xiuli Geng, 2022. "A Hesitant Fuzzy Method for Evaluating Risky Cold Chain Suppliers Based on an Improved TODIM," Sustainability, MDPI, vol. 14(16), pages 1-23, August.

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