Supplier Selection using NSGA-II Technique

Supplier Selection using NSGA-II Technique

Vladimir Rankovic (Faculty of Economics, University of Kragujevac, Kragujevac, Serbia), Zora Arsovski (Faculty of Economics, University of Kragujevac, Kragujevac, Serbia), Slavko Arsovski (Faculty of Engineering, University of Kragujevac, Kragujevac, Serbia), Zoran Kalinic (Faculty of Economics, University of Kragujevac, Kragujevac, Serbia), Igor Milanovic (Faculty of Economics, University of Kragujevac, Kragujevac, Serbia) and Dragana Rejman-Petrovic (Faculty of Economics, University of Kragujevac, Kragujevac, Serbia)
Copyright: © 2012 |Pages: 13
DOI: 10.4018/jwp.2012100103
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Abstract

In modern manufacturing industries, supplier selection is increasingly recognized as a critical decision in supply chain management. Supplier selection problem is a typical multiple criteria decision making problem involving a number of different and usually conflicting objectives. Because of that, modern supplier selection techniques imply solving of multi-objective optimization problems. In this paper supplier selection using evolutionary algorithm (NSGA-II method) is presented. Recent investigations show that quality and costs are among the most important selection factors. In this paper the authors used variance of quality and total costs as criteria for selection optimization. Results show that described methodology can be applicable for the practical purposes.
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Supplier Selection

Modern supplier selection techniques require consideration of both quantitative criteria (for example, quality, cost, delivery) and qualitative criteria (for example, flexibility, service, culture).

Existing methods differ in criteria evaluation and assessment and can be classified into three major categories.

First category contains methods based on elimination of suppliers which do not satisfy defined selection rule. For each chosen criterion must be defined minimal mark. Applying “conjunctive” rule (Wright, 1975), suppliers whose mark is lower than minimal mark are eliminated. Suppliers whose marks satisfy minimal marks of all chosen criteria go in next phase. Next phase is usually application of “lexicographic” rule (Wright, 1975) which implies selection of the most significant criterion for suppliers’ assessment. Supplier who satisfies chosen criterion much better than other supplier is selected.

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