Consistent and Sustainable Supplier Evaluation and Order Allocation: Evaluation Score based Model and Multiple Objective Linear Programming Model

Abstract

This paper is to develop an integrated approach of supplier evaluation and order allocation to suppliers that suggests the buyer to place more orders to the supplier that has higher evaluation score (consistent order allocation) considering sustainability issues including economic, social, environmental, and disruption of supply chain issues. The proposed approach is handled by an Evaluation Score based Linear Programming (ESLP) Model. Performances of ESLP model is compared with those of Multiple Objective Linear Programming (MOLP) model that does not explicitly consider the evaluation scores of suppliers for order allocation. Experimental results show that ESLP model offers consistent order allocation while MOLP model offers inconsistent order allocation. Moreover, MOLP model has different priorities of suppliers for order allocation when the customer demands are changed. Inconsistent order allocation makes the purchasing process nontransparent, unexplainable, and susceptible for biased decisions. ESLP and MOLP models generate compromised solutions that are nondominated. They are better and worse for some performances. This paper emphasizes a need of further research that develops consistent order allocation methods.