An integrated mathematical model based on grey optimal ranking for supplier selection considering pandemic situation

ABSTRACT

Optimal selection and allocation of suppliers are crucial decisions for an organization and it becomes more critical when the firm faces disruptive events. The recent outbreak of COVID-19 has led to massive supply disruptions in a supply chain. This paper aims to address the supplier selection and allocation problem of manufacturing firms under pandemic environment. In this study, a novel Mixed Integer Linear Programming (MILP) model integrated with grey optimal ranking of suppliers considering factors related to pandemic situation is proposed. The methodology is implemented in two subsequent stages. In the first stage, Grey Relational Analysis is adopted to determine the grey possibility scoring, and in the second stage, a supplier selection model is proposed to integrate the grey scoring to a MILP model to determine optimal allocation of suppliers. The paper presents a numerical study to demonstrate the proposed model and sensitivity analysis is conducted to deduce key managerial insights regarding the factors affecting the allocation under pandemic situation. Further, the illustration demonstrates how the proposed method integrates the expert ranking based approach and the cost minimization approach. The study is generic in nature and provides useful directions for practitioners involved in supplier selection in manufacturing organizations. © 2022, The Author(s), under exclusive licence to Operational Research Society of India.