A multi-objective robust possibilistic programming approach to coordinating procurement operations in the disaster supply chain using a multi-attribute reverse auction mechanism

Abstract

This paper presents a multi-attribute reverse auction framework to facilitate the purchase operations between suppliers and a relief organization. The proposed auction framework consists of announcement, construction, and evaluation phases. In the announcement phase, the relief organization provides suppliers with information about demand and required relief items. In the construction phase, a fuzzy bi-objective mathematical model is developed from a supplier’s perspective; by solving the model, the suppliers offer their bids, each of which stipulating price, quantity, and delivery time for each item. The evaluation phase is formulated from the relief organization’s perspective; suppliers are first ranked based on their proposed bids and other qualitative criteria by the fuzzy PROMETHEE method. Then, a fuzzy tri-objective mathematical model is solved to determine winner(s) and allocate orders. For the first time, this paper develops a multi-objective robust possibilistic programming (MORPP) approach to cope with the uncertainty of parameters in the relief chain. Furthermore, multi-objective models are solved by an augmented ∊-constraint method. Finally, applicability and validity of the proposed auctioning framework are tested through a real case study in Iran and the managerial insights are provided.