Supplier selection is a critical process in supply chain management and business competitiveness.This article presents a decision-making model that optimizes allocation of demand across aset of suppliers considering expected losses associated with delivery defaults, purchasing costs,unforeseen costs of non-delivered supplies, and supplier management costs. An experimentaland sensitivity analysis was carried out to study the behavior of the model with regard to keyparameters. The results reveal that the proposed model is sensitive to these parameters anddemonstrate the usefulness of the model to decision makers in this field.