Suitable Aggregation Models Based on Risk Preferences for Supplier Selection and Order Allocation Problem
Sirin Suprasongsin*,**, Pisal Yenradee**, Van-Nam Huynh*, and Chayakrit Charoensiriwath***
*School of Knowledge Science, Japan Advanced Institute of Science and Technology
1-1 Asahidai, Nomi, Ishikawa 923-1292, Japan
**School of Manufacturing Systems and Mechanical Engineering, Sirindhorn International Institute of Technology, Thammasat University
99 Moo 18, Km. 41 on Paholyothin Highway Khlong Luang, Pathum Thani 12120, Thailand
***National Electronics and Computer Technology Center
112 Phahonyothin Road, Khlong Nueng, Khlong Luang District, Pathum Thani 12120, Thailand
In this paper, we propose (a) fuzzy multiple objective linear programming models for the Supplier Selection and Order Allocation (SSOA) problem under fuzzy demand and volume/quantity discount environments, and (b) an analysis of how to select the suitable aggregation operator based on the risk preferences of decision makers. The aggregation operators under consideration are additive, maximin, and augmented operators while the risk preferences are classified as risk-averse, risk-taking, and risk-neutral ones. The suitabilities of aggregation operators and risk preferences of decision makers are analyzed by a statistical technique, considering the average and the lowest satisfaction levels of the supplier selection criteria, based on numerical examples. Analysis results reveal that decision makers with different risk preferences will prefer only some aggregation operators and models. Moreover, a particular aggregation operator and model may generate a dominated solution for some situations. Thus, it should be applied with caution.
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