An Approach Based on Binary Multiple Criteria Programming for Supplier Selection Problem under Uncertainty

Supplier selection is one of the influential decisions for effectiveness of purchasing and manufacturing policies under competitive conditions of the market. This paper develops a Nadir Compromise Programming model for decision-making under uncertainty on the supplier selection within the framework of binary programming. Depending on condition of uncertainty, three statuses are taken into consideration and a solution approach is proposed for each status. A pure deterministic NCP model is presented for solving the problem in white condition (data certainty) and a solution approach resulted from combination of NCP and stochastic programming is introduced to solve the model in black (data uncertainty) situation. The paper also proposes a NCP model under certainty and uncertainty for solving problem under grey (combination of data certainty and uncertainty) conditions. The proposed approaches are illustrated for a real problem with multiple criteria and a simulation approach is designed to examine capabilities of the proposed model.

Keywords:

Nadir compromise programming , Stochastic programming , Multi-objective programming , Supplier selection