A Multi-objective Mathematical Model for Sustainable Supplier Selection and Order Lot-sizing under Inflation

Supply chain management is going on changing and developing in line with the needs of the growing global supply chain. Performance of supply chain, considered as a whole so that businesses can accommodate these evolvements and change, needs to be improved in the long run. Actually, businesses work with suppliers complying with their policies from past to present. However, other dimensions of sustainability should be considered, as well as economic criteria when selecting suppliers. With the right supplier selection made in this respect, by contributing to the efficient functioning of the supply chain, it will increase customer satisfaction, and therefore, the enterprises will reach the goals they set. The solution of the multi-objective sustainable supplier selection problem has been realized by using the “satisfied optimal supplier design” algorithm, also called fuzzy goal programming, with de novo-based interval type-2 proposed in this study.

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A multi-objective optimization model for sustainable supply chain network with using genetic algorithm

Journal of Modelling in Management ◽

10.1108/jm2-06-2020-0150 ◽

2020 ◽

Vol ahead-of-print (ahead-of-print) ◽

Cited By ~ 1

Author(s):

Reza Ehtesham Rasi ◽

Mehdi Sohanian

Keyword(s):

Supply Chain ◽

Performance Indicators ◽

Supplier Selection ◽

Supply Chain Network ◽

Sustainable Supply Chain ◽

Multi Objective Optimization ◽

Content Type ◽

Sustainability Performance ◽

Multi Objective ◽

Sustainable Supplier Selection

Purpose The purpose of this paper is to design and optimize economic and environmental dimensions in a sustainable supply chain (SSC) network. This paper developed a mixed-integer linear programing (MILP) model to incorporate economical and environmental data for multi-objective optimization of the SSC network. Design/methodology/approach The overall objective of the present study is to use high-quality raw materials, at the same time the lowest amount of pollution emission and the highest profitability is achieved. The model in the problem is solved using two algorithms, namely, multi-objective genetic and multi-objective particle swarm. In this research, to integrate sustainable supplier selection and optimization of sustainability performance indicators in supply chain network design considering minimization of cost and time and maximization of sustainability indexes of the system. Findings The differences found between the genetic algorithms (GAs) and the MILP approaches can be explained by handling the constraints and their various logics. The solutions are contrasted with the original crisp model based on either MILP or GA, offering more robustness to the proposed approach. Practical implications The model is applied to Mega Motor company to optimize the sustainability performance of the supply chain i.e. economic (cost), social (time) and environmental (pollution of raw material). The research method has two approaches, namely, applied and mathematical modeling. Originality/value There is limited research designing and optimizing the SSC network. This study is among the first to integrate sustainable supplier selection and optimization of sustainability performance indicators in supply chain network design considering minimization of cost and time and maximization of sustainability indexes of the system.

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