A supplier selection model in pharmaceutical supply chain using PCA, Z-TOPSIS and MILP: A case study

Supplier selection is one of the critical processes in supplier chain management which is associated with the flow of goods and services from the supplier of raw material to the final consumer. The purpose of this paper is to present a novel approach and improves the supplier selection in a multi-it...

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Bibliographic Details
Published in:PloS one 2018-08, Vol.13 (8), p.e0201604-e0201604
Main Authors: Forghani, Athena, Sadjadi, Seyed Jafar, Farhang Moghadam, Babak
Format: Article
Language:English
Subjects:
Algorithms
Biology and Life Sciences
Business logistics
Case reports
Case studies
Commerce
Component and supplier management
Criteria
Decision analysis
Decision Making
Decision Support Techniques
Delphi method
Drug Industry
Fuzzy sets
Industrial engineering
Information processing
Integer programming
Integrated approach
Linear programming
Mixed integer
Monte Carlo simulation
Pharmaceutical industry
Pharmaceutical Preparations
Pharmaceuticals
Physical Sciences
Principal Component Analysis
Principal components analysis
Programming, Linear
Reliability analysis
Research and Analysis Methods
Set theory
Social Sciences
Suppliers
Supply chains
SWOT analysis
Vendor relations
Vendor supplier relations
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Summary:Supplier selection is one of the critical processes in supplier chain management which is associated with the flow of goods and services from the supplier of raw material to the final consumer. The purpose of this paper is to present a novel approach and improves the supplier selection in a multi-item/multi-supplier environment, and provide the importance and the reliability of the criteria by handling vagueness and imperfection of information in decision making process. First, principal component analysis (PCA) method is used to reduce the number of supplier selection criteria in pharmaceutical companies. Next, using the most important criteria resulted from the PCA method, the importance and the reliability of the selected criteria are assessed by a group of decision-maker (DM). Then, the importance value of each supplier with respect to each product is obtained via the Technique for Order Performance by Similarity to Ideal Solution (TOPSIS) based on the concept of Z-numbers called Z-TOPSIS. Finally, these values are used as inputs in a mixed integer linear programming (MILP) to determine the suppliers and the amount of the products provided from the related suppliers. To validate the proposed methodology, an application is performed in a pharmaceutical company. The results show that the proposed method could provide promising results in decision making process more appropriately.
ISSN:1932-6203
1932-6203
DOI:10.1371/journal.pone.0201604