An integrated Multi-objective Decision Making Process For Supplier Selection with Volume Discounts
نویسنده
چکیده
Nowadays, purchasing decisions are increasingly considering both tangible and intangible factors that in supplier selection. If suppliers have capacity or other different constraints, the problem is to identity the potential suppliers and to allocate the optimal order quantity among the selected suppliers. In this paper an integrated model of analytic hierarchy process (AHP) and preemptive goal programming (PGP) is proposed. The model attempts to incorporate volume discount in a conflicting multi-objective scenario wherein one needs to maximize the total purchase value and minimize the total cost. The framework of the model will be illustrated by means of a numerical example.
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