A Multi-Objective Programming Model for Supplier Evaluation and Selection in the Steel Industry Supply Chain (Case Study: Khouzestan Steel Company)
Abstract
This research focuses on quantitative models for the selection and evaluation of suppliers in the supply chain. It is applied in nature, with the statistical population consisting of 12 experts from Khouzestan Steel Company. Based on this, a fuzzy mathematical model has been proposed for the selection and evaluation of suppliers, aiming to minimize returned goods, late transportation rates, order production costs, and raw material costs. Given the uncertainties present in real-world issues, the demand and capacity parameters, which may not have available or precise values, are considered as fuzzy trapezoidal numbers. Two methods have been employed: the fuzzy ranking method (Jiménez's method) for converting the fuzzy model into a deterministic model, and the Linear Programming (LP)-metric method due to the multi-objective nature of the problem. The computational results obtained from solving the model show that, in the fuzzy model, due to the consideration of flexibility in the model's constraints using various α-cuts (in Jiménez's range method), the model becomes more flexible compared to the deterministic model, resulting in a better objective function value. Additionally, the results of the proposed model provide optimal values for returned goods, late transportation rates, order production costs, and raw materials, enabling managers to select the most suitable supplier. Furthermore, the calculations indicate that the model's fuzziness does not significantly increase computational complexity or problem-solving time.
Keywords:
Suppliers, Supply chain, Linear programming-metric, Fuzzy logicReferences
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