A multi-objective supplier selection model under stochastic demand conditions

Abstract

Supplier selection is a typical multi-criteria decision problem attracting great attention recently. Cost, quality, delivery and flexibility are generally involved in the supplier selection decision making. In this paper, a measurement of supplier flexibility is extended to consider demand quantity and timing uncertainties comprehensively. A multi-objective supplier selection model is developed under stochastic demand conditions. Stochastic supplier selection is determined with simultaneous consideration of the total cost, the quality rejection rate, the late delivery rate and the flexibility rate, involving constraints of demand satisfaction and capacity. Using a problem specific genetic algorithm, computational results are presented.