A supplier selection using a hybrid grey based hierarchical clustering and artificial bee colony

Selection of one or a combination of the most suitable potential providers and outsourcing problem is the most important strategies in logistics and supply chain management. In this paper, selection of an optimal combination of suppliers in inventory and supply chain management are studied and analyzed via multiple attribute decision making approach, data mining and evolutionary optimization algorithms. For supplier selection in supply chain, hierarchical clustering according to the studied indexes first clusters suppliers. Then, according to its cluster, each supplier is evaluated through Grey Relational Analysis. Then the combination of suppliers’ Pareto optimal rank and costs are obtained using Artificial Bee Colony meta-heuristic algorithm. A case study is conducted for a better description of a new algorithm to select a multiple source of suppliers