A model integrating environmental concerns and supply risks for dynamic sustainable supplier selection and order allocation

Abstract

Environmental factors are increasingly being considered in supply chain risk management (SCRM), which itself represents a growing trend. Accordingly, dynamic supplier selection and order allocation have become very important. Both qualitative and quantitative factors should be considered in the selection of eligible suppliers. In this study, a novel two-stage comprehensive mathematical model is developed for selecting a set of suppliers and assigning an order quantity to each supplier. The first stage involves a primary selection of alternative suppliers according to the risk value, which is determined using qualitative and quantitative methods based on the best–worst method, and the second stage involves establishing a multiobjective mathematical model for dealing with dynamic supplier selection and order allocation. The proposed approach, which helps enterprises manage uncertainty in SCRM, is applied in this study to the new energy vehicles industry.