An integrated model of material supplier selection and order allocation using fuzzy extended AHP and multiobjective programming

Abstract

This paper presents a supplier selection and order allocation (SSOA) model to solve the problem of a multiperiod supplier selection and then order allocation in the environment of short product life cycle and frequent material purchasing, for example, fast fashion environment in apparel industry. At the first stage, with consideration of multiple decision criteria and the fuzziness of the data involved in deciding the preferences of multiple decision variables in supplier selection, the fuzzy extent analytic hierarchy process (FEAHP) is adopted. In the second stage, supplier ranks are inputted into an order allocation model that aims at minimizing the risk of material purchasing and minimizing the total material purchasing costs using a dynamic programming approach, subject to constraints on deterministic customer demand and deterministic supplier capacity. Numerical examples are presented, and computational results are reported.