A Multi-Criteria Double Sourcing Based Optimization Approach to Manage the Supply Chain Risk

Abstract

In this study we propose a proactive optimization approach to manage the supply chain risk. The purpose of presented model in this paper is supplier selection with the objective of minimizing the total cost. We apply the multi sourcing strategy to avoid the supply disruption while restricting the selection by suppliers' corporate groups and the second-tier suppliers. We examine the model by different datasets. The findings suggest that this approach has more fficiency when the variance between suppliers' total cost is lower.