Suitable Aggregation Models Based on Risk Preferences for Supplier Selection and Order Allocation Problem

In this paper, we propose (a) fuzzy multiple objective linear programming models for the Supplier Selection and Order Allocation (SSOA) problem under fuzzy demand and volume/quantity discount environments, and (b) an analysis of how to select the suitable aggregation operator based on the risk prefe...

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Bibliographic Details
Published in:Journal of advanced computational intelligence and intelligent informatics Vol. 22; no. 1; pp. 5 - 16
Main Authors: Suprasongsin, Sirin, Yenradee, Pisal, Huynh, Van-Nam, Charoensiriwath, Chayakrit
Format: Journal Article
Language:English
Published: 20.01.2018
ISSN:1343-0130, 1883-8014
Online Access:Get full text
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Summary:In this paper, we propose (a) fuzzy multiple objective linear programming models for the Supplier Selection and Order Allocation (SSOA) problem under fuzzy demand and volume/quantity discount environments, and (b) an analysis of how to select the suitable aggregation operator based on the risk preferences of decision makers. The aggregation operators under consideration are additive, maximin, and augmented operators while the risk preferences are classified as risk-averse, risk-taking, and risk-neutral ones. The suitabilities of aggregation operators and risk preferences of decision makers are analyzed by a statistical technique, considering the average and the lowest satisfaction levels of the supplier selection criteria, based on numerical examples. Analysis results reveal that decision makers with different risk preferences will prefer only some aggregation operators and models. Moreover, a particular aggregation operator and model may generate a dominated solution for some situations. Thus, it should be applied with caution.
ISSN:1343-0130
1883-8014
DOI:10.20965/jaciii.2018.p0005