Sustainable Supplier Selection and Order Allocation Under Risk and Inflation Condition

Abstract

The main objective of this paper is to develop an integrated multiobjective and multiperiod mathematical model for sustainable supplier selection and order allocation of an automotive manufacturer. In spite of the vast quantity of research on this area, integrated consideration of risk and inflation in sustainable supplier selection and order allocation problem is less investigated. To fill this gap, this paper aims to develop a multiobjective sustainable supplier selection and order allocation model considering risk and inflation. Particularly, six objective functions of total cost, economic score, environmental score, social score, inflation rate, and risk level along with related constraints are optimized in the model. The developed model is solved using weighted sum approach and augmented ε-constraint method. In addition, a sensitivity analysis has been conducted. The results provide the best sustainable suppliers and the optimum quantity of products to be purchase from each supplier in each period.