Abtin Boostani - Department of Industrial Engineering, College of Engineering University of Tehran, Tehran, Iran
Seyed Ali Torabi - Department of Industrial Engineering, College of Engineering University of Tehran, Tehran, Iran

This paper attempts to build efficient supplier evaluation and selection systems in order to supplying required products with high quality, at the right moment with minimum delivery time and at a reasonable cost; to compensate losses arising from the risk of sanctions in Iran’s Oil & Gas Drilling Industry. In the proposed study, two general classes of required items and two different classes of suppliers are considered. In order to evaluation and selection of the admissible suppliers, AHP technique is used. Also, a multi-objective linear programming model based on total cost minimization, total risk minimization, and maximizing the total value of purchasing, is proposed to the best selection of suppliers and allocation of orders. A numerical example is presented to demonstrate the applicability of the proposed model.

Supplier selection, Order allocation, Risk factor, Multi-objective, AHP, Drilling Industry