In this work, a mixed-integer linear programming model is formulated to allocate the appropriate orders to the right suppliers for recyclable raw materials. We modify the previous model for the supplier selection and order allocation problem for stochastic demand to cope with the supply risks of recyclable raw materials such as insufficient supply quantity, defective rate, and late delivery. The optimal solution of the mathematical model is the benchmark for small-sized problems. Then, a hybrid meta-heuristic of Particles Swarm Optimization and Grey Wolf Optimization (PSO-GWO) is proposed to search for the best solution for large-sized problems. A real-life case study of a steel manufacturer with two factories in Vietnam is presented to validate the proposed approach. Some experiments have been tested to confirm the performance of the hybrid PSO-GWO approach.