A Grey-Based DEMATEL Model for Evaluating Supplier Development Criteria (original) (raw)
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Supplier selection using grey theory: a case study from Indian banking industry
Journal of Enterprise Information Management, 2015
Purpose – As the suppliers of any organization are considered as the strategic partners and taken as the integral part of the supply chain network, hence it is very crucial decision to select the suppliers in order to get the competitive edge. Whenever, any organization select its suppliers then organization evaluates every supplier with respect to certain criteria, which are already listed in the organization’s policies. Since supplier selection is based on the evaluation of various attributes of each alternative; therefore this problem is a multi-attribute decision-making (MADM) problem. The purpose of this paper is to propose a model for selecting the best supplier. Design/methodology/approach – This paper reports the implementation of grey theory to choose the appropriate supplier with uncertain information. Grey values have been used to give the ratings and weightage to various criteria which are being used to evaluate the different supplier alternatives. And finally the grey p...
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Selection of supplier is one of the most critical activities performed by the organizations because of its strategic importance. Over the years a number of quantitative approaches have been applied to supplier selection problems. The selection process is commonly based on their previous performance records, so the ranking determines which supplier will get their supply contract. However a survey on current evaluation methods shows that they are all less objective and lack accurate data processing. These evaluation criteria often conflict, however and it is frequently impossible to find a supplier that excels in all areas. In addition some of the criteria are quantitative and some are qualitative. Thus a methodology is needed that can capture both subjective and objective evaluation measures. In this paper, we presented AHP and Grey Relational Analysis to establish a complete and accurate evaluation model for selecting suppliers based on multiple criteria and places the order quantit...
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. .
Fuzzy DEMATEL method for developing supplier selection criteria
Expert Systems with Applications, 2011
Supply chain management (SCM) practices have flourished since the 1990s. Enterprises realize that a large amount of direct and indirect profits can be obtained from effective and efficient SCM practices. Supplier selection has great impact on integration of the supply chain relationship. Effective and accurate supplier selection decisions are significant components for productions and logistics management in many firms to enhance their organizational performance. This study pioneers in using the fuzzy decision-making trial and evaluation laboratory (DEMATEL) method to find influential factors in selecting SCM suppliers. The DEMATEL method evaluates supplier performance to find key factor criteria to improve performance and provides a novel approach of decision-making information in SCM supplier selection. This research designs a fuzzy DEMATEL questionnaire sent to seventeen professional purchasing personnel in the electronic industry. Our research results find that stable delivery of goods is the most influence and the strongest connection to other criteria.
International Journal of Procurement Management, 2020
Put essentially, supplier relationship management (SRM) is tied in with incorporating the correct innovation, procedures, assets, and instruments expected to adjust the manufacturing/service organisations with their suppliers to make more grounded and increasingly steadfast connections. Many organisations are focusing their concentration only customer relationship due to short-term goals, e.g., sales and profit and missing their vital relationship with suppliers. This paper intends to investigate and assess the basic elements which have critical effect on the SRM. The fuzzy DEMATEL method has been used to build up the causal relationship among the basic variables extracted from the literature and to decide the level of impact of a factor. The outcomes uncover that supplier development program, established mutual relationship, good management practice and common goal are the most critical factors which influence SRM. Moreover quality issue due to delivery, benefit measurement, supply uncertainty and supplier competency are also remarkably impact SRM. This paper may be a guideline to the decision makers of manufacturing organisations for the betterment of SRM strategy.
DEMATEL Method in Supplier Evaluation and Selection
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The increasing complexity of supply chains creates a number of areas that need to be optimized. Complicated relations between different actors on various markets indicate the need for simplification of the decision-making process and, at the same time, being focused on the organization’s goals and needs. The development of multi-criteria methods of supporting decision making applies in particular to the area of logistics support, including supply management. One of the methods widely used in this field is the DEMATEL method, which is a classical approach to evaluate suppliers according to survey or interview results. The article aims to present the application of the supplier evaluation procedure according to the criteria indicated by the decision-makers as significant. The literature review was used for specifying the variables. Then, the evaluation procedure was presented, followed by an empirical example. The paper can be useful for decision-makers both in single organizations an...
Supplier Evaluation, Qualification and Selection Model: A Proposal
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The evaluation and selection of suppliers are strategic decisions to be made by the purchasing department with long-term implications. These decisions are highly complex and the most difficult responsibility of the purchasing department. Complexity stems from a number of factors. Among others: a) different variables may be chosen from a list of 50 found in literature, b) variables may be contingent to product categories and situations, c) a gamut of different methodologies can be considered d) input information related to the various suppliers is not completely known with certainty. In this work different interpretations have been analysed about both the supplier evaluation concept and the involved variables to be used in this evaluation. Then, a supplier evaluation and selection model is designed to obtain, on the one hand, a list of qualified suppliers and, on the other hand, a support to make the decision on the best supplier to which a specific order is to be assigned to. Finally, the uncertainty inherent to the quantification of certain variables included in the model is considered by using the fuzzy logic.
Nowadays stakeholder pressure and public awareness have been raised against companies " environmental impacts, so green supply chain management (GSCM) seems vital for companies " environmental compliance and business growth. Companies continuously seek novel ideas and methods enabling them to obtain and/or maintain environmental sustainability. Greening the supply chain is one of such innovative idea involving all of the business value-adding operations, comprising purchasing and in-bound logistics, production and manufacturing, distribution, out-bound logistics and collaboration with patrons and suppliers in a way that has the least negative environmental effect. The main objective of the present study is finding interrelationship between green supplier criteria. For this to happen, we investigated experts " opinions through nominal group technique (NGT) to find out the interrelationship and causal preferences of the green supplier evaluation aspects using Decision-Making Trial and Evaluation Laboratory (DEMATEL) method. A numerical example demonstrates the application of the proposed model.
Integration Dematel and ANP for The Supplier Selection in The Textile Industry: A Case Study
Jurnal Ilmiah Teknik Industri, 2021
Currently, companies are required to improve supply chain performance. One of the main problems in the supply chain is the proper supplier selection. Supplier selection has an essential role in improving supply chain management performance. Supplier selection requires the proper criteria. However, the relationship between criteria is rarely considered in the selection of suppliers in the textile industry. This study tries to propose integrating the Decision Making Trial and Evaluation Laboratory (DEMATEL) and the Analytic Network Process (ANP) for supplier selection in the textile industry. Both methods are multi-criteria decision making (MCDM) tools DEMATEL is used to assess the relationship between criteria. Furthermore, ANP is used to evaluate and weigh the importance of criteria and suppliers. A case study was carried out in a textile company located in Indonesia. The results show that this procedure can identify the relationship and effect of each criterion. The results show th...
A grey-based decision-making approach to the supplier selection problem
Mathematical and Computer Modelling, 2007
Supplier selection is a multiple-attribute decision-making (MADM) problem. Since the decision makers (DMs) such as preferences on alternatives or on the attributes of suppliers are often uncertain, supplier selection becomes more difficult. Grey theory is one of the methods used to study uncertainty, being superior in the mathematical analysis of systems with uncertain information. In this paper, we propose a new grey-based approach to deal with the supplier selection problem. The work procedure is as follows: firstly, the weights and ratings of attributes for all alternatives are described by linguistic variables that can be expressed in grey numbers. Secondly, using a grey possibility degree, the ranking order of all alternatives is determined. Finally, an example of a selection problem of supplier was used to illustrate the proposed approach.