Supplier selection and order allocation a main factor in supply chain

Supplier management is one of the most important parts in supply chain management that is increasingly recognized as a critical decision in the globalization process. Most of firms have been spending considerable amount of their revenues on purchasing. Hence supplier selection is one of the most important functions of purchasing management. The aim of this research is to introduce an integrated model for supplier's selection and order allocation in an automotive company. Therefore the research was performed in two sections and four steps. In first section in order to select the best suppliers we used an integrated AHP-TOPSIS approach. Therefore, after library studies and interview with experts, managers and specialists in supply chain management filed, decision criterion were identified through Delphi contains of main criteria and sub criteria for suppliers selection process. Then in the second section for order allocation to every selected suppliers in first section; we used a multi-objective linear programming model. Therefore objectives and subjective of suppliers and Automotive Company were identified in this section. Results show that applying a two phase AHP-TOPSIS methodology causes to select the best suppliers. Also Automotive Company's total costs will be minimized with using a MOLP model.