A multiobjective chance constrained programming model for supplier selection under uncertainty

R. Ufuk Bilsel, A. Ravindran

Research output: Contribution to journalArticlepeer-review

72 Scopus citations

Abstract

Risk management is an inherent part of supplier selection. While companies are enjoying the benefits of outsourcing, risks brought by this practice should be taken into account in the process of decision making. This paper presents a multiobjective stochastic sequential supplier allocation model to help in supplier selection under uncertainty. Demand for products, capacities at suppliers as well as transportation and other variable costs are the main sources of uncertainty and are modeled using probability distributions. Disruptions are exogenous events and the model provides proactive mitigation strategies against disruptions by assigning backup suppliers who can be used in case of a default at a primary supplier. When there is no disruption, the model's solution is an optimal supplier order assignment, considering operational risks.

Original languageEnglish (US)
Pages (from-to)1284-1300
Number of pages17
JournalTransportation Research Part B: Methodological
Volume45
Issue number8
DOIs
StatePublished - Sep 2011

All Science Journal Classification (ASJC) codes

  • Civil and Structural Engineering
  • Transportation

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