A Multiattribute Supplier Selection and Order Quantity Allocations Model with Green Procurement Considerations

Abstract

One of the key challenges of current procurement decisions is to consider more than just a single attribute such as cost. Consequently, multiattribute procurement has emerged as an important research direction. This paper proposes a model for selecting the vendors to employ and determining the order quantities to allocate to them while taking into considerations the criteria of cost, quality, delivery reliability, and carbon emission of the purchased items. The procurement decision consists of sourcing multiple products from multiple suppliers, for delivery to multiple facilities. Further, we consider a competitive and business-constrained sourcing environment in which the vendors offer discounts on total amount of sales volumes not on the quantity or variety of products purchased from them. The procurement problem is formulated as a multi-objective mixed integer model.