EVALUATION OF BEST SUPPLIER USING MULTI CRITERIA DECISION MAKING METHODS (original) (raw)
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Decision Science Letters
Supplier selection is one of the most essential activities in purchase management and plays a crucial role in the production phase. Supplier selection as a vital step of supply chain management is a multi-criteria decision-making issue. For any organization, the process of selecting the best supplier holds variable multilayered complications involving quantitative and qualitative criteria. This paper tackles the supplier selection problem in a Turkish Textile Company. The present study carries out a novel grey integrated multi-criteria approach for enhancing the supplier procedure within Textile Company with the help of the grey analytical hierarchy process G-AHP model for weighting the set of criteria, and the grey weighted aggregated sum product assessment WASPAS-G model for prioritizing the suppliers. The study starts with reviewing the previous works of multi-criteria decision-making MCDM methods and the list of existing criteria evaluation in supplier selection. Then, the range of criteria is selected based on the company requirements and the experts' interview. In the case study, the consistency rate of the models is tested in order to verify the quality of experts' judgments. The final results affirm that Grey integrated approach could be efficient and far more precise than the existing models for overcoming the supplier selection and evaluation obstacles in the supply chain management. .
A Rough Multicriteria Approach for Evaluation of the Supplier Criteria in Automotive Industry
Decision Making: Applications in Management and Engineering, 2018
Ensuring costs reduction and increasing competitiveness and satisfaction of end users are the goals of each participant in the supply chain. Taking into account these goals, the paper proposes methodology for defining the most important criteria for suppliers' evaluation. From a set of twenty established criteria, i.e. four sets of criteria: finances, logistics, quality and communication and business including its sub-criteria, we have allocated the most important ones for supplier selection. Analytic Hierarchy Process (AHP) based on rough numbers is presented to determine the weight of each evaluation criterion. For the criteria evaluation we have used knowledge from the expert in this field. The efficacy of the proposed evaluation methodology is demonstrated through its application to the company producing metal washers for the automotive industry. Next a sensitivity analysis is carried out in order to show the stability of the model. For checking stability the AHP method in conventional form is used in combination with fuzzy logic.
Supplier Selection by Using Multi Criteria Decision Making Methods
2014
In the present study an efficient multi criteria decision making (MCDM) approach has been proposed for quality evaluation and performance appraisal in supplier selection. Supplier selection is a multi-criteria decision making problem influenced by multiple performance criteria.These criteria's/attributes may be both qualitative as well as quantitative .Qualitative criteria estimates are generally based on previous experience and expert opinion on a suitable conversion scale.This conversion is based on human judgment.Therefore predicted result may not be accurate always because the method does not explore real data.These are analyzed by TOPSIS(Technique for order preference similarity to ideal solution), PROMETHEE(Preference Ranking Organization Method for Enrichment Evaluations) etc. In solution of MCDM problems there should be a common trend is to convert quantitative criteria values into an equivalent single performance index called Multi attribute performance index. MCDM meth...
Novel Integrated Multi-Criteria Model for Supplier Selection: Case Study Construction Company
Symmetry, 2017
Supply chain presents a very complex field involving a large number of participants. The aim of the complete supply chain is finding an optimum from the aspect of all participants, which is a rather complex task. In order to ensure optimum satisfaction for all participants, it is necessary that the beginning phase consists of correct evaluations and supplier selection. In this study, the supplier selection was performed in the construction company, on the basis of a new approach in the field of multi-criteria model. Weight coefficients were obtained by DEMATEL (Decision Making Trial and Evaluation Laboratory) method, based on the rough numbers. Evaluation and the supplier selection were made on the basis of a new Rough EDAS (Evaluation based on Distance from Average Solution) method, which presents one of the latest methods in this field. In order to determine the stability of the model and the applicability of the proposed Rough EDAS method, an extension of the COPRAS and MULTIMOORA method by rough numbers was also performed in this study, and the findings of the comparative analysis were presented. Besides the new approaches based on the extension by rough numbers, the results are also compared with the Rough MABAC (MultiAttributive Border Approximation area Comparison) and Rough MAIRCA (MultiAttributive Ideal-Real Comparative Analysis). In addition, in the sensitivity analysis, 18 different scenarios were formed, the ones in which criteria change their original values. At the end of the sensitivity analysis, SCC (Spearman Correlation Coefficient) of the obtained ranges was carried out, confirming the applicability of the proposed approaches.
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.
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.
Selection of Suppliers through Different Multi-Criteria Decision Making Techniques
Abstracts -The main objective of the paper is to provide different multi-criteria decision making approach and to clarify the similarities and dissimilarities, advantages and disadvantages of the method in order to select the better supplier selection approach. An important problem in decision analysis is the evaluation of the difference between two or more different rankings for a set of alternatives. Since a qualified supplier is a key element and a good resource for a buyer in reducing such costs, evaluation and selection of the potential suppliers has become an important component of supply chain management. In this paper some multi-criteria decision making techniques such as Linear weighted method, Categorical method, Fuzzy approach, Analytical Hierarchical process (AHP)are discussed with example. The aim of this article is to understand the strategic operating decision area of the supplier selection process and to aid decision makers with varying degrees of importance to reach consensus in rating alternative suppliers.
2018
Coordinating business operation with suppliers becomes increasingly important to survive and prosper under the dynamic business environment. A good partnership with suppliers not only increase efficiency, but also strengthen corporate competitiveness. Associated with such concern, this study aims to develop a practical approach of multi-criteria supplier evaluation using combined methods of Taguchi loss function (TLF), best-worst method (BWM) and VIse Kriterijumska Optimizacija kompromisno Resenje (VIKOR). A new framework of integrative approach adopting these methods is our main contribution for supplier evaluation in literature. In this integrated approach, a compromised supplier ranking list based on the loss score of suppliers is obtained using efficient steps of a pairwise comparison based decision making process. Implemetation to the case problem with real data from crumb rubber industry shows the usefulness of the proposed approach. Finally, a suitable managerial implication ...
Multi Criteria Decision Making Tools for Supplier Evaluation and Selection: A Review
In competitive markets, companies are always under intense pressure to find ways to reduce production and material costs to survive and sustain their competitive position in their respective markets. Since a qualified supplier is a vital element for a buyer in reducing such costs, evaluation and selection of the potential suppliers has become an important component of supply chain management. Most supplier selection models consider various tangible and intangible characteristics of suppliers. AHP, FAHP, FUZZY TOPSIS, DEA, ANP, ANN, FIS, GA etc. are the supplier selection and evaluation approaches that have different process to select and evaluate a supplier that has been focused in this paper and also classified individually and combined based on the previous researches. To analysis the cost the MOLP method and the Multi Criteria Decision making tools (MCDM) have been included in this paper to take the decision and to select the suppliers more accurately and makes a reflection on the effective suppliers selection criteria like supplier reliability, product quality and supplier experience etc. and also suggests on the most quantitative results on cost effective methods and supplier selection approaches.