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Multi-objective supplier selection process: a simulation–optimization framework integrated with MCDM

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Abstract

As a multi-criteria decision-making (MCDM) problem, supplier selection plays a key role in achieving the objectives of a supply chain system. Multiple strategic, operational, quantitative, and qualitative criteria influence the supplier selection process. A wide spectrum of criteria have been introduced, classified, and used by researchers and practitioners to evaluate the suppliers’ performance; however, measuring and employing all of these criteria is impractical in real-world scenarios due to the budget, time, and information limitations. In this study, a decision support system (DSS) is developed, which helps managers to select a set of most effective criteria for the supplier selection process. This DSS is a threefold integration of MCDM and simulation and optimization. In this framework, the MCDM module incorporates a combination of criteria to select the suppliers. Then, a simulation model is used to evaluate the performance of the supply chain system considering the selected suppliers. Based on the simulation results, a multi-objective metaheuristic algorithm is utilized to find the ideal combinations of the criteria to maximize the supply chain system performance.

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Authors and Affiliations

  1. Department of Production Management, School of Business, Istanbul University, Istanbul, Turkey

    Nihan Kabadayi

  2. Mechanical and Industrial Engineering Department, Northeastern University, Boston, USA

    Mohammad Dehghanimohammadabadi

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  1. Nihan Kabadayi
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Correspondence to Mohammad Dehghanimohammadabadi.

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Appendices

Appendix 1: A brief summary of Supplier selection approaches

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Table 8 Supplier selection approaches
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8.

Appendix 2: NSGA-II Parameters

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Table 9 NSGA-II Parameters
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9.

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Kabadayi, N., Dehghanimohammadabadi, M. Multi-objective supplier selection process: a simulation–optimization framework integrated with MCDM. Ann Oper Res 319, 1607–1629 (2022). https://doi.org/10.1007/s10479-021-04424-2

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