Three echelon supply chain design with supplier evaluation

Abstract

An effective supply chain management (SCM) facilitates companies to react to changing demand by swiftly communicating their needs to the supplier. Optimizing a supply chain (SC) performance is a key factor for success in long term SC relationships. Substantial information such as price, delivery time percentage and acceptance percentage are discussed in the process. Imprecise demand as one of the factors is added in the same process that fuzzifies coordination between buyer and supplier. The paper considers non-deterministic conditions in the environment of business, coordination in procurement and distribution in a supplier selection problem and a fuzzy model with two objectives is defined. The proposed model is a “fuzzy bi-objective mixed integer nonlinear” problem. To process the solution the fuzzy model is converted into crisp and further fuzzy goal programming approach is employed. The model is validated with the help of a real case problem.