Considering Supply Chain Benefit in Supplier Selection Problem by Using Information Sharing Benefits

Abstract

Optimizing a supply chain (SC) performance as a whole is a key success factors in forming long term relationships in SC. One of the most important processes in starting a supply chain is supplier selection. Much information such as price and accepted quality is exchanged between buyer and suppliers in the process. Traditionally, in a supplier selection problem, only buyer's benefit is optimized. In a centralized supply chain, the exchanged information can be used to optimize the whole benefit of supply chain versus only buyer's benefit. So, it seems reasonable that the buyer and suppliers share information between them. In this paper, considering nondeterministic conditions in the environment of business, coordination between buyers and suppliers in a supplier selection problem has been proposed and a fuzzy model with three objectives has been defined. These objectives are cost, quality, and timely delivery. Proposed model is a “fuzzy multiobjective mixed integer nonlinear” problem. A heuristic method is used to gain an efficient solution of the problem. Findings show that coordination between buyer and suppliers as an approach to global optimization more benefits for SC such as reducing whole cost rather than individually optimizing its member's benefits.