Multi-objective optimisation of risk and business strategy in real-world supply networks in the presence of uncertainty

Dobrila Petrovic, Magdalena Kalata

    Research output: Contribution to journalArticlepeer-review

    4 Citations (Scopus)
    70 Downloads (Pure)


    Selection of suppliers is very important for a strategic supply network (SN) design. This paper presents a novel multi-objective optimisation model for supplier selection and order allocation. In addition to a standard objective of total SN cost minimisation, two new objectives are considered: minimisation of suppliers’ risk and maximisation of achievement of a manufacturer business strategy. Uncertainty in supply lead times and non-conformance rates of delivered components causes uncertainty in the SN cost objective. These parameters are described using imprecise linguistic terms and modelled using fuzzy numbers. Risk classification of suppliers is carried out using imprecise knowledge which is modelled using fuzzy If-Then rules and embedded in the risk objective. Various experiments are carried out to analyse the trade-off between the considered objectives and the impact of SN network parameters on the suppliers’ selection and order allocation. The size of the problem that the model can handle is analysed also.
    Original languageEnglish
    Pages (from-to)1869-1884
    Number of pages16
    JournalJournal of the Operational Research Society
    Issue number11
    Early online date24 Jan 2019
    Publication statusPublished - 2 Nov 2019


    • fuzzy sets
    • optimisation
    • risk
    • Supply network

    ASJC Scopus subject areas

    • Management Information Systems
    • Strategy and Management
    • Management Science and Operations Research
    • Marketing


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