A Robust optimization approach for multi objective supplier selection problem

In this paper, we proposed a new multi objective MILP model for supplier selection problem with considering multi-product and multi-period conditions, shortage and inventory constraints simultaneously and considering discount circumstances. Objectives are minimizing costs, maximizing on time delivery and minimizing rejected items. However, despite these efforts, due to the uncertainty nature of the problem, some parameters are considering as an uncertainty data. For this case, computationally tractable robust counterparts of uncertain problems are explicitly obtained, making RO a useful tool for real-world applications. The study reveals that the feasibility properties of the usual solutions of real world LPs can be severely affected by small perturbations of the data and that the RO methodology can be successfully used to overcome this phenomenon.

Keywords:

Supply Selection , Supply Chain , Robust Optimization , Robust Counterpart (RO) , Uncertain Data