A fuzzy goal programming approach for vendor selection problem in a supply chain

Abstract

A fuzzy goal programming approach is applied in this paper for solving the vendor selection problem with multiple objectives, in which some of the parameters are fuzzy in nature. A vendor selection problem has been formulated as a fuzzy mixed integer goal programming vendor selection problem that includes three primary goals: minimizing the net cost, minimizing the net rejections, and minimizing the net late deliveries subject to realistic constraints regarding buyer's demand, vendors capacity, vendors' quota flexibility, purchase value of items, budget allocation to individual vendor, etc. An illustration with a data set from a realistic situation is included to demonstrate the effectiveness of the proposed model. The proposed approach has the capability to handle realistic situations in a fuzzy environment and provides a better decision tool for the vendor selection decision in a supply chain.