Supplier selection decision-making in supply chain risk scenario using agent based simulation

Selecting the right suppliers for a supply chain is important as it can have great significance on the operating performance of the supply chain. The supplier selection problem can be quite complex as it usually involves numerous variables and uncertainties, which frequently come in the form of disruptions. This paper examines the existing approaches for supplier selection with focus on their advantages and limitations. The paper then proposes an ew approach for supplier selection based on selection criteria and agent-based simulation (ABS) to address some of the limitations.ABS models are developed for the selection based on a set of defined criteria and the scenarios of a distribution supply chain. Profit and customer service level (CSL) are used as key performance indicators (KPI)to rank the suitability of the selections. The results reveal the impacts of supplier profiles on KPIs, and these help firms to make the right decision on supplier selection.