Resilient supplier selection and order allocation under operational and disruption risks

This study proposes a bi-objective mixed possibilistic, two-stage stochastic programming model to address supplier selection and order allocation problem to build the resilient supply base under operational and disruption risks. The model accounts for epistemic uncertainty of critical data and applies several proactive strategies such as suppliers' business continuity plans, fortification of suppliers and contracting with backup suppliers to enhance the resilience level of the selected supply base. A five-step method is designed to solve the problem efficiently. The computational results demonstrate the significant impact of considering disruptive events on the selected supply base. (C) 2015 Elsevier Ltd. All rights reserved.