Gresilient supplier assessment and order allocation planning

Companies are under pressure to re-engineer their supply chains to 'go green' while simultaneously improving their resilience to cope with unexpected disruptions where the supplier selection decision plays a strategic role. We present a new approach to supplier evaluation and allocating the optimal order quantity from each supplier with respect to green and resilience (gresilience) characteristics. An integrated framework that considers traditional business, green and resilience criteria and sub-criteria was developed, followed by a calculation of importance weight of criteria and sub-criteria using analytical hierarchy process (AHP). We evaluate suppliers using the technique for order of preference by similarity to ideal solution (TOPSIS). The obtained weights from AHP and TOPSIS were integrated into a developed multi-objective programming model used as an order allocation planner and the epsilon-constraint method was used to solve the multi-objective optimization problem. TOPSIS was applied to select the final Pareto solution based on its closeness from the ideal solution. The applicability and effectiveness of the proposed approach was illustrated using a real case study through a comparatively meaningful ranking of suppliers. The study provides a helpful aid for managers seeking to improve their supply chain resilience along with 'go green' responsibilities.

Automated summary

The study proposes a new approach to evaluate suppliers and allocate optimal order quantities, considering green and resilience characteristics. By using AHP and TOPSIS to calculate and integrate weights, the study solves the multi-objective optimization problem. The effectiveness and applicability of the proposed approach are demonstrated through a case study.