Sustainable supplier selection and order allocation under operational and disruption risks

Abstract This study proposes a novel bi-objective two-stage mixed possibilistic-stochastic programming model to address sustainable supplier selection and order allocation problem under operational and disruption risks. A hybrid SWOT-QFD systematic framework is suggested for choosing the most influential sustainability criteria in accordance with the manufacturer's strategies. Furthermore, different proactive strategies such as contracting with backup suppliers, and considering excess capacity for supply nodes are used to enhance the resilience level of the selected supply base. A mixed sustainability-resilience objective function is also introduced to select a resiliently sustainable supply base. A number of numerical examples are tested to validate the formulated model and its solution method. A case study is also provided to demonstrate the applicability of the proposed framework in practice. Finally, a sensitivity analysis is carried out to show the merits of the proposed aggregate sustainability-resilience objective function.

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