Supplier Selection & Order ALLOCATION Considering Sustainbility And Quantity Discount (In case study of HACAseafood JSC)

Abstract

Following good strategies in supplier selection is one of important issues for a purchasing company to survive in a competitive market. On the other hand, sustainability factors: environmental, social and economic factors plays an important role in global market, especially aquaculture market. In order to meet sustainable requirement, suppliers are evaluated by applying TOPSIS-The Technique for Order of Preference by Similarity to Ideal Solution with three main criteria: environmental, social and economic factors. A multi-objective linear programming model is developed and combined with TOPSIS result which takes into account the integration of Supplier selection & Order allocation in a multi-period, multi-item and multi-supplier. Moreover, quantity discounts are considered under three types: no discount, all-unit and incremental discount. The proposed framework will be applied into the real-life case of Hacaseafood Joint Stock Company. It suggests a comprehensive and systematic supplier selection and procurement policy to improve the overall efficiency of their supply chain. Keywords: Supplier selection; order allocation; sustainability; quantity discounts.