Maintenance supplier selection considering life cycle costs and risks: a fuzzy goal programming approach

Abstract

In this study, we address a new variant of supplier selection problem named maintenance supplier selection problem faced by a manufacturer. The production system consists of different multi-component equipments whose maintenance activities require several components (parts) each of which could be provided by multiple suppliers. A multi-objective mathematical model is developed to decide about the supply base of each part as well as the purchasing quantity of each part from each selected supplier. The model accounts for the total life cycle costs of purchased parts and various risks threatening the candidate suppliers. A fuzzy/soft lexicographic goal programming approach with soft priorities between objectives is proposed to enable the decision-maker to make preferred trade-offs between objectives by which the effects of various risks in each phase of life cycle of procured parts are investigated. The capability and effectiveness of the proposed model is validated through a case study. Some sensitivity analyses are also carried out for investigating the impact of cost, risk and objectives’ priorities on the final preferred compromise solution. Finally, some managerial insights and concluding remarks are provided.

Keywords:

• maintenance
• supplier selection
• risk management
• life cycle costing
• fuzzy lexicographic goal programming

Acknowledgements

This study was supported by a grant from Iran National Science Foundation (INSF) [project number 91058035] and the University of Tehran under the research [grant number 8109920/1/15]. The authors are grateful for these financial supports.