A bi-level programming model for green supplier selection and order allocation

In order to heighten the market competitiveness of manufacturing enterprises, we conclude a green supplier evaluation system and propose a bi-objective, bi-level optimization model for the supplier selection and order allocation(SS&OA) in manufacturing green supply chain. The upper level of decision-maker selected suppliers for limited cost, and we built a 0-1 integer programming. As of the lower level, we allocated the orders to each selected supplier by calculating the comprehensive performance evaluation with the target of obtaining the best product performance, which can build a linear programming problem. We designed a hierarchical tabu search algorithm to solve the model. The key to achieve the mutual feedback of upper and lower levels is to design an evaluation function. The algorithm in this paper has been analyzed to solve the model, and the algorithm in this paper can ensure strong astringency, whilst it can attain the optimal combination of suppliers and the minimum total purchasing cost. Finally, a number of numerical examples are tested to validate the formulated model and its solution methods are effective and efficient, meanwhile we can demonstrate the applicability of the proposed framework in practice.