Optimizing the Combined Problem of Facility Location and Multi-Objective Supplier Selection Using a Comprehensive Benchmarking Method

The selecting suppliers is one of the most important decisions in any supply chain, which, if properly selected, will reduce the costs of supply chain production. On the other hand, in a company's logistics decisions, facility location has a great impact on supply chain design. Therefore, in this study, the facility location problem, supplier selection and order allocation in a multi-cycle and multi-product supply chain is studied in which economic goals and network reliability are considered as a two-objective optimization / decision-making problem. To evaluate the mathematical model, the model has been implemented in GAMS software by LP metric method with different P values. Because of solving the mathematical model, the selected location of the facility, the best suppliers to purchase products and the optimal allocation to each supplier are determined. The results show that the LP metric method has a good performance in finding optimal solutions to the problem and can be efficient in searching for optimal solutions.