Using Integrated MMD-TOPSIS to Solve the Supplier Selection and Fair Order Allocation Problem: A Tunisian Case Study

Abstract

Currently, the supplier selection process is considered as an integral part of the supply chain. The appropriate selection of suppliers plays a preponderant role in the performance chain of supply as it determines relevant aspects such as cost management and flexibility of most production processes. Background: It is considered a multi-criteria and multi-objective problem because it includes both qualitative and quantitative factors. Method: To solve the Supplier Selection and Fair Order Allocation Problem (SSFOAP), a hybrid solution methodology based on the best–worst method (BWM) and MMD-TOPSIS techniques in the first phase has been developed to find a robust ranking of suppliers. In the second phase to determine the weight of the objective function, the Linear Programming (LP) approach is used. Results: This proposed model can help decisionmakers find the right orders for each supplier and enable purchasing managers to manage supply chain performance in terms of cost, quality, and service. To test the performance of our solution methodology, we apply our hybrid technique to solve a real case of the Tunisian Electric Society (TSE). Cplex software is used to solve bi-objective programming and to answer strategic questions. Conclusions: The experimental results indicate that the combination of MMD-TOPSIS and bi-objective programming provide effective gain concerning solution quality compared with the given solution of the administrator of TSE.