Efficient supplier selection - a three-stage multi-criteria decision-making approach (original) (raw)
Related papers
International Journal of Advanced Operations Management, 2017
A good supplier is a key resource for an organisation in reducing costs, improving productivity and quality of the product. Hence, selection of potential suppliers has become an important task of supply chain management. Traditionally, procurement is considered as buying the material at cheapest price and maximizes the buyer's profit. But this does not necessarily lead to an optimal situation for all members of a supply chain. This paper attempts to propose an analytical framework for supplier evaluation and selection using analytical hierarchy process (AHP) and linear programming problem (LPP). Supplier selection process includes evaluation of multiple criteria and various constraints associated with them. A case of auto parts manufacturing firm is analysed. After analysing the case, the suppliers were ranked based on their performance using AHP technique and LPP is then adopted to determine the optimum quantity to be procured from each of the best ranked supplier.
Designing a computational tool for supplier selection using analytical hierarchy process
With increasingly competitive global world markets, companies are under intense pressure to find ways to cut production and material costs to survive and sustain their competitive position. Since a qualified supplier is a key element and a good resource for a buyer in reducing such costs at optimum material quality, evaluation and selection of the right suppliers is critical to maintain competitiveness. This decision becomes more complicated in case of multiple suppliers, multiple conflicting criteria, and imprecise parameters. Most supplier selection models consider the buyer’s viewpoints and maximise only the buyer’s advantages and thus do not necessarily lead to an optimal situation for business competitiveness. This paper deals with a multi attribute decision model using AHP for the justification of supplier selection, explore the factors influencing the supplier selection, the relationship between the identified factors and the firm’s performance with reference to manufacturing industries in Bhubaneswar City.
THE ANALYTICAL HIERARCHY PROCESS IN THE SUPPLIER SELECTION PROBLEM
2000
The Supplier Selection Problem (SSP) consists of analyzing and measuring the performance of a set of suppliers in order to rank and select them for improving the competitiveness of the whole supply system. As many conflicting factors should be taken into account in the analysis, the problem can be tackled using multi-criteria models and methods. In this work a careful scrutiny of the papers appeared on international scientific journals in the recent years about SSP is provided. The survey highlights that the most used methodology is the Analytical Hierarchy Process (AHP). Thus, an overview view of the current proposals based on AHP and its variants to cope with the SSP is provided. Crucial aspects which arise when the methodology is actually applied in real cases are identified and discussed.
A THREE-PHASE MULTICRITERIA METHOD TO THE SUPPLIER SELECTION PROBLEM
This paper describes a new multi-criteria method to solve the general supplier selection problem. The supplier selection problem is complicated and risky, owing to a variety of qualitative and quantitative factors affecting the decision-making process. For this matter, we present a unique three-phase methodology to reduce the base of potential suppliers to a manageable number and optimize the allocation of orders by means of multi-criteria techniques, namely ideal solution approach, Analytical Hierarchy Process (AHP) and Goal Programming (GP). Finally, a real-life example is provided to illustrate how the method can be used in practice.
Advances in Intelligent Systems and Computing, 2016
Supplier evaluation and selection is recognized as a multiple criteria problem. Having considerable economic impact and influencing a competitive position of a buyer, supplier selection has been modelled by different multiple criteria decision analysis approaches. This case study focuses on the reported "relevance gap" between theoretical approaches to the supplier selection problem and practice. The research was conducted in a textile group, addressing a typical buying situation of a main raw material. The decision process was structured with weighted score, AHP and goal programming models. Three models elaborated have led to the very similar output, recognized as realistic and consistent by the decision makers. Acquired skills of multiple criteria decision analysis were considered as beneficial for supplier selection decisions.
Using Analytical Hierarchy Process (AHP) to Build Suppliers' Selection Model
The analytical Hierarchy process (AHP) is a multi-criteria decision making approach (MCDMA) can be used to solve complex decision problems. This study aimed to use this objective tool to build suppliers' selection model, utilizing competitive priorities "quality, cost, delivery and flexibility" as an evaluation and selection criteria. The researcher has developed an evaluation questionnaire distributed to a simple random sample of functional managers in the chemical industries sector companies enlisted in Amman Stock Exchange, the relative importance degrees were measured for main criteria "competitive priorities" from the perspective of those managers to identify their attitudes when selecting suppliers, the study concluded that the quality is the most important criterion among competitive priorities criteria for selecting and evaluating suppliers as it got a percentage of 0.53 of the general sum, followed by cost criterion that got a percentage of 0.22 so the two criteria have got 0.75 percentage. In the light of what the study has concluded, the researcher recommended the necessity of using Analytical Hierarchy Process in making decisions of selecting suppliers especially in chemical industries sector, and other industrial sectors as well, due to what this approach has of advantages and features for making complex decisions.
Selection of Potential Suppliers through Different Multi-Criteria Decision Making Techniques
Supplier selection is a continuous and never-ending process for acquiring the necessary raw materials and components to support the final output of business organizations. The suppliers are supposed to provide the required materials, products, components, parts or services within the scheduled time period in an efficient manner to the purchaser. There may be numerous suppliers in the market, but the selection of the most suitable supplier is the key to the success of the business organization. Thus, the main objective of this paper is to choose the highly potential suppliers through which all the goals of the organization can be achieved. For the selection of the potential supplier there have many common & advanced multi criteria decision making techniques such as weighted method, Categorical method, Fuzzy Approach, Analytical Hierarchical Process (AHP), Taguchi Loss Functions, and Interactive Selection Model etc. Among them two different Multi-Criteria Decision-Making (MCDM) methods are used to select potential suppliers which are Analytical Hierarchical Process (AHP) and Taguchi Loss Functions. In this context, a real time example is cited to illustrate the applicability and potentiality of these MCDM methods while solving supplier selection decision-making problems.
The Analytic Hierarchy Process in the Supplier Selection Problem
Proceedings of the International Symposium on the Analytic Hierarchy Process, 2009
The Supplier Selection Problem (SSP) consists of analyzing and measuring the performance of a set of suppliers in order to rank and select them for improving the competitiveness of the whole supply system. As many conflicting factors should be taken into account in the analysis, the problem can be tackled using multi-criteria models and methods. In this work a careful scrutiny of the papers appeared on international scientific journals in the recent years about SSP is provided. The survey highlights that the most used methodology is the Analytical Hierarchy Process (AHP). Thus, an overview view of the current proposals based on AHP and its variants to cope with the SSP is provided. Crucial aspects which arise when the methodology is actually applied in real cases are identified and discussed.
Selecting the best supplier using analytic hierarchy process (AHP) method
African Journal of Business Management, 2012
The purchasing function of a firm directly affects its competitive ability. Purchasing managers need to periodically evaluate the performance of suppliers in order to retain those who meet their requirements. There are various criteria for supplier selection and evaluation. This report provides a guideline for establishing supplier selection criteria for purchasing activities of University Procurement Department in accordance with some purchasing topics. The analytic hierarchy process (AHP) decision making process functions in terms of the multi-criteria analysis for cost, flexibility, quality, delivery, and variety. The present report provides an accurate and easy classification in supplier attributes that have been prioritized in the model.