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Multi-objective optimisation model of supplier selection and order allocation problem in a hospital: a case study

Author

Listed:
  • Cucuk Nur Rosyidi
  • Ryan Adesta Yudhatama
  • Pringgo Widyo Laksono

Abstract

This study aims to determine a set of suppliers using sustainability criteria and the optimal order allocation to the selected suppliers at a University Hospital in Central Java, Indonesia. In this research, we propose the combination of two multi-criteria decision-making (MCDM) approaches to determine the best supplier, namely, best-worst method (BWM) and the measurement alternatives and ranking according to compromise solution (MARCOS). Multi-objective mixed-integer linear programming (MOMILP) is then used to determine the optimal quantity of drug orders. A sensitivity analysis studies the model's sensitivity to some parameters. The results show that the model is sensitive to the changes in purchasing price and defect rate.

Suggested Citation

  • Cucuk Nur Rosyidi & Ryan Adesta Yudhatama & Pringgo Widyo Laksono, 2023. "Multi-objective optimisation model of supplier selection and order allocation problem in a hospital: a case study," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 17(4), pages 541-563.
    • Handle: RePEc:ids:ijpman:v:17:y:2023:i:4:p:541-563
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