Multiple Objective Fuzzy Sourcing Problem with Multiple Items in Discount Environments

Abstract

The selection of proper supply sources plays a vital role to maintain companies’ competitiveness. In this study a multiple criteria fuzzy sourcing problem with multiple items in discount environment is considered as a multiple objective mixed integer linear programming problem. Fuzzy parameters are demand level and/or aspiration levels of objectives. Three objective functions are minimization of the total production and ordering costs, the total number of rejected units, and the total number of late delivered units, respectively. The model is developed for the all-units discount scheme. For the incremental discount and volume discount environment, modification requirements of the model are mentioned. The previously proposed interactive fuzzy approach combined with three fuzzy mathematical models is employed to obtain most satisfactory solution which is also a nondominated one. This study provides a realistic mathematical model and promising solution strategy to multiple item-single period sourcing problem in discount environment. Consideration of fuzziness makes the obtained nondominated solution implementable for the real cases.