Development of a decision support system for supplier evaluation and order allocation (original) (raw)

Modeling and development of a decision support system for supplier selection in the process industry

This paper presents the development of a model based decision support system with a case study on solving the supplier selection problem in a chemical processing industry. For the evaluation and selection of supplier, the analytical hierarchy process (AHP) and grey relational analysis (GRA) were used. The intention of the study is to propose an appropriate platform for process industries in selecting suppliers, which was tested with an electroplating industry during the course of development. The sensitivity analysis was performed in order to improve the robustness of the results with regard to the relative importance of the evaluation criteria and the parameters of the evaluation process. Finally, a practical implementation study was carried out to reveal the procedure of the proposed system and identify the suitable supplier with detailed discussions about the benefits and limitations.

Decision Support Model for Supply Chain Management

Teme, 2021

The purpose of this paper is the creation of a model for supply chain performance optimization and the development of a prototype of the decision support system. The study covered an efficient and agile supply chain type. The Analytic Hierarchy Process was used (AHP) for the evaluation and ranking of supply chains. The research on this topic have dealt with the evaluation and ranking of suppliers within supply chains not considering the characteristics of different types of supply chains. The contribution of this work is in the development of a new model that enables the evaluation and ranking of supply chains considering the priorities of key performance indicators in different types of supply chains, providing management with the support in decision making through simulation and the finding of optimum solutions for the specific supply chain type, as well as the possibility of evaluation and ranking of different supply chain types on the basis of weighted overall performance of each supply chain. Developed and suggested models provide company management with monitoring and control of individual key performance indicators and total supply chain performance, and in this way, become the support to the management in strategic decision making.

Hybrid analytical hierarchy process model for supplier selection

Industrial Management & Data Systems, 2008

Purpose -This paper aims to propose a new approach called "analytical hierarchy process weighted fuzzy linear programming model (AHP-FLP)" for supplier selection. Design/methodology/approach -A hybrid method of supplier selection, AHP-FLP is applied to a real industry case. The weights of the various criteria, taken as local weights from a given judgment matrix, are calculated using analytical hierarchy process (AHP) that are also considered as the weights of the fuzzy linear programming model. This new model is compared with the classical AHP method. Findings -This study concluded that the AHP-FLP method outperforms the AHP method for supplier selection with respect to restricted supplier selection criteria. Drawing on a real case, Supplier 1 was identified to be the best supplier through the AHP model under no restrictions, which contradicts the finding that Supplier 2 was selected as the best supplier by the AHP-FLP model subject to constraints. Research limitations/implications -More research is definitely called for within the context of studying a more complex supply chain with multiple supply network and nodes. There is also a crucial need for investigating other hybrid methods to find the optimum supplier. Practical implications -The findings of this study indicate that the weights of supplier selection criteria calculated by the AHP-FLP model are in line with the actual supplier selection decision of purchasing managers. Since the AHP-FLP model is relatively more difficult to implement compared with the crisp AHP, its application will be more appropriate for high-value components where stringent purchasing criteria are required. In contrast, AHP remains an appropriate approach for relatively lower value components (C class). Originality/value -The novelty of this study lies in the application of a hybrid approach to a real industry case. This study has dealt with one of the most important subjects in supply chain management, providing a better decision for supplier selection using appropriate quantitative techniques.

A Decision Support System for Purchasing Management in Supply Chains

(DSS) for selecting the suppliers that are candidate to join a supply chain network. The proposed DSS bases the decision on the cost evaluation of the transaction among the buyer and the available suppliers. In particular, the presented DSS includes a statistical module and the DSS core. The former module estimates the exchange performance indices, ie total cost of the transaction, purchasing price and additional costs of purchasing.

Suppliers Delivery Performance Evaluation & Improvement using AHP

Supplier relationship management deals with all processes that focus on the interface between the firm and its suppliers and aims to arrange for and manage supply sources for various goods and services. It includes the evaluation and selection of suppliers, negotiation of supply terms, and communication regarding new products and orders with suppliers. Although supplier selection is logically the first step involved, supplier evaluation and improvement is a perpetual process and is necessary for ensuring long term relationships with suppliers. This paper focuses on the application of Analytical Hierarchy Process (AHP), a multi-criteria decision making tool for establishing a software based supplier delivery performance evaluation system for all suppliers of automobile manufacturer and provide a mechanism to assess their delivery performance, identifying scope for improvements and thereby lead to continuous improvement. The supplier delivery performance criteria are first identified ...

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.

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.

Modelling and development of decision model for supplier selection in process industry

International Journal of Computer Aided Engineering and Technology, 2011

The selection of appropriate supplier is one of the most critical decisions in the competitive business environment. In this study a decision support model has been developed for supplier selection using analytic hierarchy process by considering both qualitative and quantitative criteria. The proposed model is illustrated with a case study of an electroplating industry to demonstrate the effectiveness of this model. Through the proposed model, it is promising to effectively combine the specialised knowledge, experience and the quantitative data to select the best suppliers.

An integrated approach for supplier selection and purchasing decisions

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