Dynamic supplier selection through optimal ranking under two-echelon system

摘要: With the increasing competition among industries, they remain under pressure as how to select best set of suppliers for competitive edge. Often, it has been challenging develop an effective due varied and asymmetric mode criteria. The purpose this paper is a responsive chain original equipment manufacturer (OEM).,This study proposes two-echelon system (TES) OEM, which needs collaborate with at each echelon through integrated methodology AHP TOPSIS. According OEM’s criteria, demands suppliers’ capacity vary time, therefore are not static longer period. Hence, supplier selection (SS) problem possesses dynamicity in real practice. For this, MILP used finding optimal order quantities based on ranking multi-period scenario. Subsequently, sensitivity analysis (SA) conducted Taguchi method parameter design (TMPD) achieve TES.,This suggests criteria’s weight, percentage contribution, flexibility manufacturers involving maximum demand strategy OEM. It also provides robust group TES simultaneously allocations. Furthermore, restricts number manufactures proposed obtain solution very short running time.,To validate model, data case conveyor company used. This adopted can suggest organization that approach should be implemented.