Multicriteria decision models for supplier selection and order quantity allocation under stochastic environments

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Supplier selection problem involves evaluating and selecting best performing supplier(s) and allocating order quantities. The supplier selection problem is simple if the selection criteria are known and deterministic, however in reality, majority of them are qualitative, uncertain and conflicting in nature. This makes the selection process difficult. Variations in customer demand, price, quantity and lead time uncertainty from suppliers add further complexity to the problem. The objective of this project is to develop multicriteria decision making models for supplier selection and order quantity allocation under stochastic environments for Luxxeen Production Inc, a Canadian company specializing in production of baby wipes, wet wipes and facial tissues products. The first step of the work involves development of dynamic demand forecasting models for predicting customer demands. The second step involves supplier selection under stochastic decision making environments. The third and the last step involves development of multiobjective optimization models for order quantity allocation. The model results will be tested using field data obtained from Luxxeen. The proposed project aims to improve supplier selection operations at Luxxeen production Inc. Efficient supplier selection process will help Luxxeen in augmenting its service to wider community thereby bringing larger economic (by minimizing cost of quality and augmenting business revenues), social (by ethical and fair supplier selection practices), and environmental benefits (by incorporating ecological footprinting guidelines in supplier selection criteria) to the Canadian community. The project will also train three Highly Qualified Personnel in the areas of supply chain modeling, simulation, and data mining to build the technical strength of Canada in this domain.