*Department Of Industrial Engineering, Science and Research Branch Islamic Azad University, Saveh, Iran
**Associate Professor, Industrial Engineering, Faculty of Engineering, Bu Ali Sina University, Hamedan, Iran
***Department of Industrial Engineering, Faculty of Engineering, Bu-Ali Sina University, Hamedan, Iran
In supplier selection problem, the need for simultaneous attention to the contradictory and disparate factors makes the selection difficult for purchase department. On the other hand, the supplier selection in global markets is more complicated than local markets and requires further analysis. This problem becomes more complex especially when the suppliers also include the discounts on their offered prices. In this study, an integrated Fuzzy Analytic Hierarchy Process (FAHP) and knapsack problem approach is offered to simplify this problem and obtain an acceptable level of order to target suppliers. In this regard, some of the most important criteria of decision making are initially identified to establish an efficient and effective system for supplier selection problem in international markets and then a multidimensional knapsack problem is introduced for a single-product purchase problem by taking into account the constraints such as the budget, total demand and discount. The offered model is coded with two meta-heuristic algorithms of Imperialist Competitive Algorithm (ICA) and Particle Swarm Optimization (PSO) and compared with GAMS software solutions. The problems are finally provided to ensure the proper functioning of model and its validation.
Supplier selection, order allocation, discount, Fuzzy Analytic Hierarchy Process (FAHP), Knapsack problem
