A heuristic approach for strategic supplier selection based on product life-span and the functional relative balance

Document Type : Research Paper

Authors

1 PhD Candidate, Departmen of Industrial Engineering, Faculty of Engineering, Bu-Ali Sina University, Hamedan, Iran

2 Associate Professor, Department of Industrial Engineering, Faculty of Engineering, Bu-Ali Sina University, Hamedan, Iran

Abstract

Aiming at achieving performance goals and due to the need for satisfying sustainability regulations, appropriate supplier selection is put ahead of strategic and significant decisions. The functional relative-balance indices with the sustainability targets are dealt as the operations foundation in today's enterprises. Different from previous studies, this paper introduces a three-stage strategic approach based on the introduction, growth, and maturity of a product supposed to be delivered to the market. To this end, a sandcone methodology is developed in a way that the distinct and aggregate significances of the measures are taken into account. The least thresholds of reaching to both sustainability and functional goals are set, respectively, by a governmental entity and a manufacturer. In addition, in order to approach the aggregational improvement, sustainable balance and identification of suppliers' categories, a new multi-stage heuristic algorithm is utilized at each period. This methodology provides a mechanism whereby suppliers are evaluated according to their current status and the performance records as well. The results of the numerical study indicate that adopting the discussed algorithm can be very useful in developing long-term relationships with deserving and stable suppliers.

Keywords


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