Authors: Azadeh Mobtaker; Anjali Awasthi; Satyaveer S. Chauhan; Sophie D'Amours
Addresses: CIISE-EV 10.154, Faculty of ENCS, Concordia University, Montreal, Canada ' CIISE-EV 10.154, Faculty of ENCS, Concordia University, Montreal, Canada ' Decision Sciences, John Molson School of Business, Concordia University, Montreal, Canada ' Mechanical Engineering, University of Laval, Pavillon Pouliot, Quebec, Canada
Abstract: There is a growing interest in supply management systems in today's competitive business environment. Importance of implementing supply management systems especially in home construction industry is due to the fact that several risks arising from different sources can adversely affect the project financially or its timely completion. Some risks of construction projects are out of managers' control while other risks such as supply related ones can usually be controlled and directed by effective managerial tactics. In this paper, we address the supplier selection problem (SSP) in wood-based construction industry (housing projects) in the presence of project commencement uncertainties. Based on the suppliers' (vendors') reaction towards these uncertainties in the delivery time, we explore two cases: (a) supplier selection with buyer penalty for a delay (SSPD) where the price of product increases with the delay; (b) supplier selection with quantity reduction for a buyer delay (SSQRD). Three heuristic-based supplier selection approaches are proposed and tested on randomly generated data sets. The proposed approaches show promising results.
Keywords: housing construction project; supplier selection; stochastic conditions; linear programming; heuristics; uncertainty.
International Journal of Services and Operations Management, 2018 Vol.30 No.4, pp.480 - 504
Received: 19 Aug 2016
Accepted: 29 Oct 2016
Published online: 11 Jul 2018 *