An Integrated Multi-Objective Decision Model under Considering Stochastic Demand, Price Breaks and Disruption Risk for Order Allocation in a Multiple-Supplier Environment

Abstract

The objective of this article is to study the order allocation problems in a stochastic supply chain. This supply chain consists of a company that can order raw materials from multiple suppliers. At any time of a supply order, decisions have to be made by the company concerning the respective supplier order quantities and price breaks, so that the total purchasing cost and disruption risk cost are minimized, while maintaining a specified service level and quality. For this purpose, we have developed an integrated multi-objective decision model under random constraint to supply order allocation.