A multi-objective model for closed-loop supply chain optimization and efficient supplier selection in a competitive environment considering quantity discount policy

Mustafa Jahangoshai Rezaee · Samuel Yousefı · Jamileh Hayati

36 citations0/0 files storedJournal of industrial engineering international

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Sustainable Supply Chain Management Multi-Criteria Decision Making Supply Chain and Inventory Management

Abstract

Supplier selection and allocation of optimal order quantity are two of the most important processes in closed-loop supply chain (CLSC) and reverse logistic (RL). So that providing high quality raw material is considered as a basic requirement for a manufacturer to produce popular products, as well as achieve more market shares. On the other hand, considering the existence of competitive environment, suppliers have to offer customers incentives like discounts and enhance the quality of their products in a competition with other manufacturers. Therefore, in this study, a model is presented for CLSC optimization, efficient supplier selection, as well as orders allocation considering quantity discount policy. It is modeled using multi-objective programming based on the integrated simultaneous data envelopment analysis–Nash bargaining game. In this study, maximizing profit and efficiency and minimizing defective and functions of delivery delay rate are taken into accounts. Beside supplier selection, the suggested model selects refurbishing sites, as well as determining the number of products and parts in each network’s sector. The suggested model’s solution is carried out using global criteria method. Furthermore, based on related studies, a numerical example is examined to validate it.

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References

1957The Measurement of Productive Efficiency 1950The Bargaining Problem 2009Multi-criteria decision making approaches for supplier evaluation and selection: A literature review 1985The Measurement of Efficiency of Production 2013Multi criteria decision making approaches for green supplier evaluation and selection: a literature review 2013Integrated fuzzy multi criteria decision making method and multi-objective programming approach for supplier selection and order allocation in a green supply chain 1984A Quantity Discount Pricing Model to Increase Vendor Profits 2012A new multi-objective stochastic model for a forward/reverse logistic network design with responsiveness and quality level

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2021A mixed-integer linear programming approach for circular economy-led closed-loop supply chains in green reverse logistics network design under uncertainty 2018Supplier Selection Approaches for Decision Makers 2020A review of closed-loop supply chain models 2018A multi-product green supply chain under government supervision with price and demand uncertainty 2022

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