A fuzzy multi-objective decision-making model for global green supplier selection and order allocation under quantity discounts

ABSTRACT

The selection of potential suppliers has recently become a big challenge for the manufacturing industries due to the rapid spread of covid-19 and the escalating frequency of natural calamities such as earthquakes and floods. When decision-makers (DMs) consider quantity discounts from multiple sources, things get much more complicated. Although previous studies have looked at selecting suitable suppliers from economic and environmental aspects, no one has considered foreign transportation risks while evaluating the textile industry's global green suppliers. In this regard, for the first time, this study combines economic and environmental factors with the foreign transportation risk criterion to develop a holistic model for global green supplier selection and order allocation (SS&OA) in the textile industry under all-unit quantity discounts. Initially, the fuzzy analytical hierarchy process (FAHP) method is used to calculate the relative weights of the criteria. Second, a multi-objective linear programming (MOLP) model is developed to reduce the total procurement cost, quality rejection rate, delivery lateness rate, greenhouse gas emissions from product procurement, and foreign transportation risks. Subsequently, the developed MOLP model is transformed into a fuzzy compromise programming (FCP) model to obtain order allocation quantities among selected suppliers with their offered quantity discount rates. A real-life case study of the Pakistani textile industry is presented to validate the proposed methodology's applicability by determining the optimal order allocation quantities among multiple suppliers based on two decision-making attitudes of DMs (neutral and risk-averse). Finally, sensitivity and comparative analyses are carried out to guarantee that the proposed technique produces accurate and optimal solutions. The final results of the proposed methodology show that it can effectively manage data uncertainties during SS&OA compared to other existing approaches. The suggested integrated methodology's outcomes can assist the supplier organization in overcoming its current shortcomings and developing a long-term relationship with the buyer organization. © 2023 Elsevier Ltd