CHAPTER 14

Supplier Selection with Multiple Criteria

A company wishes to place an order for 800 pieces of a particular item, for which 4 suppliers (S1, S2, S3, and S4) are available. Each supplier accepts orders in lot sizes that vary from supplier to supplier. The lot size lj is 40, 20, 100, and 50 for suppliers S1, S2, S3, and S4, respectively. Each supplier j can supply only a maximum quantity mj given by 400, 400, 600, and 300 for suppliers S1, S2, S3, and S4, respectively.

The company wishes to decide the quantity to be ordered from each supplier on the basis of four criteria1 given by price, quality, delivery consistency, and process capability. Selection of suppliers using multiple objectives is difficult. For example, if a supplier is ...

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