Supplier selection with an integrated methodology in unknown environment

Abstract

This paper proposes an integrated methodology and its solution for supplier selection problem. A two-stage stochastic programming model and fuzzy TOPSIS methods are consolidated in this methodology. After pre-research phase, in the second part of the methodology, fuzzy TOPSIS is used for ranking potential suppliers considering qualitative data under fuzzy environment. In the third part of the methodology a group of ranked potential suppliers are included in a two-stage stochastic programming model for evaluation. In the two-stage stochastic programming model demand is assumed as uncertain and different scenarios are generated for this parameter. With this methodology, supplier evaluation procedure can be done in unknown environment. Our methodology is interested with a problem in multi-product, multi-period and multi-sourcing environment. (C) 2010 Elsevier Ltd. All rights reserved.