Supplir Selection and Order Allocati on under Risk: Iranian Oil and Gas Drilling Companies

This paper addresses a supplier selection and order allocation problem while considering the losses arising from the risk of sanctions on Iran ’s Oil & Gas Drilling Industry. In the proposed study, two general classes of items and two diflerent classes of suppliers are considered. Analytical Hierarchy Process (AHP) is lamb first used to rank the potential suppliers. Then, a multi—objective linear programming model is proposed to determine the best suppliers and their allocated orders. A numerical example ispresented to demonstrate the applicability of the proposed model.

Keywords:

supplier selection , order allocation , sanction risk , multi-objective , AHP , drilling industry