EURO 2025 Leeds
Abstract Submission

99. A Multi-Stage Resilient Supplier Selection under Stochastic uncertainty

Invited abstract in session WB-8: Decision aiding under uncertainty 2, stream Multiple Criteria Decision Aiding.

Wednesday, 10:30-12:00
Room: Clarendon SR 2.08

Authors (first author is the speaker)

1. NITIN SAHU
Decision Sciences, Indian Institute of Management (IIM) Lucknow
2. Garima Mittal
Decision Sciences, Indian Institute of Management Lucknow

Abstract

Supplier management is one of the critical decision-making processes in the supply chain, and it becomes even more challenging in uncertain environments.  The increasing globalization and disruptions in supply chains have highlighted the need for resilience across all its components. The recognition that maintaining supply chain continuity during disruptive events is crucial has shifted companies' focus towards prioritizing the selection of resilient suppliers along with other concerns. To address these challenges, the study proposes a multi-stage stochastic resilient supplier selection and order allocation model that considers operational risks. In the first stage, a supplier resilience score for each supplier is calculated to derive a resilience index for the supplier portfolio based on key resilience criteria. The second stage involves formulating a multi-objective stochastic supplier selection model involving chance constraints that address uncertainties in demand, budget, and other critical parameters. Finally, in the third stage, we solve the proposed stochastic supplier selection model for forming a resilient supplier portfolio. The proposed methodology is demonstrated through a numerical illustration, and sensitivity analysis is performed to assess its robustness. This study presents a comprehensive framework for enhancing supplier selection in supply chain operations by integrating resilience and addressing uncertainties within the supplier portfolio model.

Keywords

Status: accepted

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