Sustainable supplier selection and order allocation through quantity discounts

Abstract

Within activities related to the global supply chain, proper supplier selection regarding sustainability issues, especially economic, environmental and social, plays an important role in sustainable development. In this paper, a new multi-objective mathematical programming model is designed to consider sustainable supplier selection and order allocation simultaneously in a multi-period, multi-item and multi-supplier supply chain. In addition, quantity discounts are considered under two assumptions: all-unit and incremental. The proposed model is solved following a revised multi-choice goal programming approach in order to find a compromise solution. Furthermore, a real-life case is studied to justify the applicability of the proposed model.

Keywords:

• Supplier selection
• sustainability
• quantity discounts
• order allocation
• goal programming