Integrated Supplier Selection and Distribution in Perishable Food Supply Chain

Abstract

In this study, we investigate the classical supplier selection and distribution problem in an integrated framework. The combined problem is originated from a local producing tomato sauce producer, whom we have been collaborated with since 2022. The suppler selection strategies are made based not only on each supplier’s product price and corresponding product quality, but also on the reliability and lead time of each protentional supplier. We proposed a quantitative framework with a conditional value-at-risk (CVaR) technique in the purpose of assessing the supplier performance. Then the selection and distribution decisions are simultaneously considered in a mixed integer linear programming (MILP) model, with the objective of maximizing the value added to the purchasing portfolio and distribution plans. Our experiments and computational results reveal that the combined approach is more beneficial than separated approaches. Finally, future research topics and managerial insights are provided.