Modelling a Multi Objective Fuzzy Supplier Selection Considering Probabilistic Demand and Buyer's Risk

Supplier selection is one of the most critical problems in the supply chain management that helps firms to evaluate and select appropriate suppliers. Different conflicting objectives could be considered in these kinds of problems. Most important objectives are: minimizing the cost, maximizing the quality, and maximizing the reliability. In this paper the set of suppliers are considered as a system and they are selected so that maximizing the reliability of the selected set and maximizing the quality of the received products, and also minimizing the purchasing cost. On the other hand, in practice exact data are not accessible, therefore, fuzzy theory is utilized to evaluate the suppliers. In addition, suppliers usually use discount mechanism to attract more buyers and to achieve more profits. In this paper supplier selection problem is modeled considering all unit discount. Additionally, satisfaction of the demand depends on the risk attitude of the buyer. The satisfaction of the demand is considered as a fuzzy-probabilistic constraint. Finally, a numerical example is solved based on different risk attitudes of the buyer and related results are reported.