A fuzzy AHP and fuzzy multi-objective linear programming model for order allocation in a sustainable supply chain: A case study

Supplier selection is a critical process in sustainable supply chain management. Increased pressure from stakeholders has forced companies to search for methodologies that help in arriving at intelligent supplier selection decisions. This is a unique study as it illustrates how to optimise orders among various suppliers while taking into consideration all three dimensions of sustainability – economic, social, and environmental. Previous studies have mostly relied on simple ranking of suppliers on the basis of past performance for selection. Those studies that did emphasise on optimisation of orders among suppliers, did not consider all three dimensions of sustainability. To establish an improved sustainable supply chain, this study uses integrated fuzzy AHP and fuzzy multi-objective linear programming approach for order allocation among suppliers. fuzzy AHP has been used for weighing various factors such as quality, lead time, cost, energy use, waste minimisation, emission, and social contribution, and weights of the factors have been considered for developing linear programming. Demand has been taken as a fuzzy variable in this model. The case of an Indian automobile company has been taken as illustration.

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