Publication:
Improving Supply Chain Performance Through Supplier Selection and Order Allocation Problem
Improving Supply Chain Performance Through Supplier Selection and Order Allocation Problem
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Date
2022
Authors
Chia-Nan Wang
Ming-Cheng Tsou
Chih-Hung Wang
Viet Tinh Nguyen
Pham Ngo Thi Phuong
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Research Projects
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Abstract
Suppliers play the vital role of ensuring the continuous supply of
goods to themarket for businesses. If businesses do not maintain a strong bond
with their suppliers, they may not be able to secure a steady supply of goods
and products for their customers. As a result of failure to deliver products,
the production and business activities of the business can be delayed which
leads to the loss of customers. Normally, each trading enterprise will have a
variety of commodity supply chains withmultiple suppliers. Suppliers play an
important role and contribute to the value of the entire supply chain. Should
any supplier encounters a problem, the whole supply chain of businesses
will be affected and could lead to not guaranteeing the stable supply to the
market. Thus, suppliers can be seen as a threat to businesses where they have
the ability to increase input prices or decrease the quality of the required
products and services they provide. The quantity of the business, and the
supply lead time directly affect the operations and reduce the profitability of
the business. The paper mainly focuses on the supplier selection problemunder
a variety of price level and product families when using a two-phase fuzzy
multi-objective linear programming. The objectives of the proposed model
are to minimize the total purchasing and ordering cost in order to reduce
the quantity of defective materials and the late-delivery components from
suppliers. Moreover, the piecewise linear membership function is applied in
themodel to determine an optimal solution which is based on the requirement
of decision makers under their fuzzy environment. The results of this study
can be applied in various business environment and provide a reliable decision
tool for choosing potential suppliers relating to these objectives. Based on the
results, the company canmake a good decision on supplier selection; therefore,
the company can improve the quality and quantity of their final product
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Keywords
"Supplier selection,
multi-objective,
linear programming,
multiprice level,
multi-product,
fuzzy sets"