An integrated multiobjective decision making process for supplier selection and order allocation

Supplier selection is a multi-criteria problem which includes both tangible and intangible factors. In these problems if suppliers have capacity or other different constraints two problems will exist: which suppliers are the best and how much should be purchased from each selected supplier? In this paper an integrated approach of analytic network process (ANP) and multi-objective mixed integer linear programming (MOMILP) is proposed to consider both tangible and intangible factors in choosing the best suppliers and define the optimum quantities among selected suppliers to maximize the total value of purchasing and minimize the budget and defect rate. The priorities are calculated for each supplier by using ANP.