Abstract: Strategic partnerships with suppliers play a vital role for the long-term value-based supply chain. This strategic collaboration keeps still being one of the top priority of many business organizations in order to create more additional value; benefiting mainly from supplier’s specialization, capacity and innovative power, securing supply and better managing costs and quality. However, many organizations encounter difficulties in initiating, developing and managing those partnerships and many attempts result in failures. One of the reasons for such failure is the incompatibility of members of this partnership or in other words wrong supplier selection which emphasize the significance of the selection process since it is the beginning stage. An effective selection process of strategic suppliers is critical to the success of the partnership. Although there are several research studies to select the suppliers in literature, only a few of them is related to strategic supplier selection for long-term partnership. The purpose of this study is to propose a conceptual model for the selection of strategic partnership suppliers. A two-stage approach has been used in proposed model incorporating first segmentation and second selection. In the first stage; considering the fact that not all suppliers are strategically equal and instead of a long list of potential suppliers, Kraljic’s purchasing portfolio matrix can be used for segmentation. This supplier segmentation is the process of categorizing suppliers based on a defined set of criteria in order to identify types of suppliers and determine potential suppliers for strategic partnership. In the second stage, from a pool of potential suppliers defined at first phase, a comprehensive evaluation and selection can be performed to finally define strategic suppliers considering various tangible and intangible criteria. Since a long-term relationship with strategic suppliers is anticipated, criteria should consider both current and future status of the supplier. Based on an extensive literature review; strategical, operational and organizational criteria have been determined and elaborated. The result of the selection can also be used to determine suppliers who are not ready for a partnership but to be developed for strategic partnership. Since the model is based on multiple criteria for both stages, it provides a framework for further utilization of Multi-Criteria Decision Making (MCDM) techniques. The model may also be applied to a wide range of industries and involve managerial features in business organizations.
Abstract: In the past, there was a lot of excellent research studies conducted on topics related to supplier selection. Because the considered factors of supplier selection are complicated and difficult to be quantified, most researchers deal supplier selection issues by qualitative approaches. Compared to qualitative approaches, quantitative approaches are less applicable in the real world. This study tried to apply the quantitative approach to study a supplier selection problem with considering operation cost and delivery reliability. By those factors, this study applies Normalized Normal Constraint Method to solve the dual objectives mixed integer program of the supplier selection problem.
Abstract: In this paper, a method is proposed for solving Fuzzy Multi-Objective Linear Programming problems (FMOLPP) with fuzzy right hand side and fuzzy decision variables. To illustrate the proposed method, it is applied to the problem of selecting suppliers for an automotive parts producer company in Iran in order to find the number of optimal orders allocated to each supplier considering the conflicting objectives. Finally, the obtained results are discussed.
Abstract: The emergence of many environmental issues began with the Industrial Revolution. The depletion of natural resources and emerging environmental challenges over time requires enterprises and managers to take into consideration environmental factors while managing business. If we take notice of these causes; the design and implementation of environmentally friendly green purchasing, production and waste management systems become very important at green logistics systems. Companies can adopt green supply chain with the awareness of these facts. The concept of green supply chain constitutes from green purchasing, green production, green logistics, waste management and reverse logistics. In this study, we wanted to identify the concept of green supply chain and why green supply chain should be applied. In the practice part of the study an analytic hierarchy process (AHP) study is conducted on an aluminum production company to evaluate suppliers.
Abstract: Selection of suppliers is a crucial problem in the supply chain management. On top of that, sustainable supplier selection is the biggest challenge for the organizations. Environment protection and social problems have been of concern to society in recent years, and the traditional supplier selection does not consider about this factor; therefore, this research work focuses on introducing sustainable criteria into the structure of supplier selection criteria. Sustainable Supply Chain Management (SSCM) is the management and administration of material, information, and money flows, as well as coordination among business along the supply chain. All three dimensions - economic, environmental, and social - of sustainable development needs to be taken care of. Purpose of this research is to maximize supply chain profitability, maximize social wellbeing of supply chain and minimize environmental impacts. Problem statement is selection of suppliers in a sustainable supply chain network by ranking the suppliers against sustainable criteria identified. The aim of this research is twofold: To find out what are the sustainable parameters that can be applied to the supply chain, and to determine how these parameters can effectively be used in supplier selection. Multicriteria decision making tools will be used to rank both criteria and suppliers. AHP Analysis will be used to find out ratings for the criteria identified. It is a technique used for efficient decision making. TOPSIS will be used to find out rating for suppliers and then ranking them. TOPSIS is a MCDM problem solving method which is based on the principle that the chosen option should have the maximum distance from the negative ideal solution (NIS) and the minimum distance from the ideal solution.
Abstract: Supplier selection problem is one of the important issues of supply chain problems. Two categories of methodologies include qualitative and quantitative approaches which can be applied to supplier selection problems. However, due to the complexities of the problem and lacking of reliable and quantitative data, qualitative approaches are more than quantitative approaches. This study considers operational cost and supplier’s reliability factor and solves the problem by using a quantitative approach. A mixed integer programming model is the primary analytic tool. Analyses of different scenarios with variable cost and reliability structures show that the effectiveness of this approach to the supplier selection problem.
Abstract: In the last decades, concerns about the environmental issues lead to professional and academic efforts on green supplier selection problems. In this sake, one of the main issues in evaluating the green supplier selection problems, which could increase the uncertainty, is the preferences of the experts' judgments about the candidate green suppliers. Therefore, preparing an expert system to evaluate the problem based on the historical data and the experts' knowledge can be sensible. This study provides an expert evaluation system to assess the candidate green suppliers under selected criteria in a multi-period approach. In addition, a ranking approach under interval-valued hesitant fuzzy set (IVHFS) environment is proposed to select the most appropriate green supplier in planning horizon. In the proposed ranking approach, the IVHFS and the last aggregation approach are considered to margin the errors and to prevent data loss, respectively. Hence, a comparative analysis is provided based on an illustrative example to show the feasibility of the proposed approach.
Abstract: Due to today’s globalization as well as outsourcing
practices of the companies, the Supply Chain (SC) performances
have become more dependent on the efficient movement of material
among places that are geographically dispersed, where there is more
chance for disruptions. One such disruption is the quality and
delivery uncertainties of outsourcing. These uncertainties could lead
the products to be unsafe and, as is the case in a number of recent
examples, companies may have to end up in recalling their products.
As a result of these problems, there is a need to develop a
methodology for selecting suppliers globally in view of risks
associated with low quality and late delivery. Accordingly, we
developed a two-stage stochastic model that captures the risks
associated with uncertainty in quality and delivery as well as a
solution procedure for the model. The stochastic model developed
simultaneously optimizes supplier selection and purchase quantities
under price discounts over a time horizon. In particular, our target is
the study of global organizations with multiple sites and multiple
overseas suppliers, where the pricing is offered in suppliers’ local
currencies. Our proposed methodology is applied to a case study for a
US automotive company having two assembly plants and four
potential global suppliers to illustrate how the proposed model works
in practice.
Abstract: Supplier evaluation and selection is one of the most important components of an effective supply chain management system. Due to the expanding competition in healthcare, selecting the right medical device suppliers offers great potential for increasing quality while decreasing costs. This paper proposes a fuzzy decision making approach for medical supplier selection. A real-world medical device supplier selection problem is presented to illustrate the application of the proposed decision methodology.
Abstract: Supplier selection is considered as one of the most critical issues encountered by operations and purchasing managers to sharpen the company’s competitive advantage. In this paper, a novel fuzzy multi-criteria group decision making approach integrating quality function deployment (QFD) and decision making trial and evaluation laboratory (DEMATEL) method is proposed for supplier selection. The proposed methodology enables to consider the impacts of inner dependence among supplier assessment criteria. A house of quality (HOQ) which translates purchased product features into supplier assessment criteria is built using the weights obtained by DEMATEL approach to determine the desired levels of supplier assessment criteria. Supplier alternatives are ranked by a distance-based method.
Abstract: An effective supplier selection process is very important to the success of any manufacturing organization. The main objective of supplier selection process is to reduce purchase risk, maximize overall value to the purchaser, and develop closeness and long-term relationships between buyers and suppliers in today’s competitive industrial scenario. The literature on supplier selection criteria and methods is full of various analytical and heuristic approaches. Some researchers have developed hybrid models by combining more than one type of selection methods. It is felt that supplier selection criteria and method is still a critical issue for the manufacturing industries therefore in the present paper the literature has been thoroughly reviewed and critically analyzed to address the issue.
Abstract: In this paper the application of rule mining in order to
review the effective factors on supplier selection is reviewed in the
following three sections 1) criteria selecting and information
gathering 2) performing association rule mining 3) validation and
constituting rule base. Afterwards a few of applications of rule base
is explained. Then, a numerical example is presented and analyzed
by Clementine software. Some of extracted rules as well as the
results are presented at the end.
Abstract: The decision of information technology (IT) outsourcing requires close attention to the evaluation of supplier selection process because the selection decision involves conflicting multiple criteria and is replete with complex decision making problems. Selecting the most appropriate suppliers is considered an important strategic decision that may impact the performance of outsourcing engagements. The objective of this paper is to aid decision makers to evaluate and assess possible IT outsourcing suppliers. An axiomatic design based fuzzy group decision making is adopted to evaluate supplier alternatives. Finally, a case study is given to demonstrate the potential of the methodology. KeywordsIT outsourcing, Supplier selection, Multi-criteria decision making, Axiomatic design, Fuzzy logic.
Abstract: The aim of this paper is to present current and future
procedures in castings procurement. Differences in procurement are
highlighted. The supplier selection criteria used in practice is
compared to literature findings. Different trends related to supply
chains are presented and it is described how they are reflected in
reality to castings procurement. To fulfil the aim, interviews were
conducted in nine companies using castings. It was found that largest
casting users have the most subcontractor foundries and it is more
typical that they have multiple suppliers for the same parts. Currently
only two companies out of nine purchase castings outside Europe,
but the others are also progressing in the same direction. The main
reason is the need to lower purchasing costs. Another trend is that all
companies want to buy cast components or sub-assemblies instead of
raw castings from foundries. It was found that price is a main
supplier selection criterion. All companies use competitive bidding in
supplier selection.
Abstract: Quality control is the crucial step for ISO 9001
Quality System Management Standard for companies. While
measuring the quality level of both raw material and semi
product/product, the calibration of the measuring device is an
essential requirement. Calibration suppliers are in the service sector
and therefore the calibration supplier selection is becoming a worthy
topic for improving service quality.
This study presents the results of a questionnaire about the
selection criteria of a calibration supplier. The questionnaire was
applied to 103 companies and the results are discussed in this paper.
The analysis was made with MINITAB 14.0 statistical programs.
“Competence of documentations" and “technical capability" are
defined as the prerequisites because of the ISO/IEC17025:2005
standard. Also “warranties and complaint policy", “communication",
“service features", “quality" and “performance history" are defined as
very important criteria for calibration supplier selection.
Abstract: Procurement is an important component in the field of
operating resource management and e-procurement is the golden key
to optimizing the supply chains system. Global firms are optimistic
on the level of savings that can be achieved through full
implementation of e-procurement strategies. E-procurement is an
Internet-based business process for obtaining materials and services
and managing their inflow into the organization. In this paper, the
subjects of supply chains and e-procurement and its benefits to
organizations have been studied. Also, e-procurement in construction
and its drivers and barriers have been discussed and a framework of
supplier selection in an e-procurement environment has been
demonstrated. This paper also has addressed critical success factors
in adopting e-procurement in supply chains.
Abstract: Supplier selection, in real situation, is affected by
several qualitative and quantitative factors and is one of the most
important activities of purchasing department. Since at the time of
evaluating suppliers against the criteria or factors, decision makers
(DMS) do not have precise, exact and complete information, supplier
selection becomes more difficult. In this case, Grey theory helps us
to deal with this problem of uncertainty. Here, we apply Technique
for Order Preference by Similarity to Ideal Solution (TOPSIS)
method to evaluate and select the best supplier by using interval
fuzzy numbers. Through this article, we compare TOPSIS with some
other approaches and afterward demonstrate that the concept of
TOPSIS is very important for ranking and selecting right supplier.
Abstract: This paper suggests an algorithm for the evaluation
and selection of suppliers. At the beginning, all the needed materials and services used by the organization were identified and categorized
with regard to their nature by ABC method. Afterwards, in order to reduce risk factors and maximize the organization's profit, purchase strategies were determined. Then, appropriate criteria were identified for primary evaluation of suppliers applying to the organization. The output of this stage was a list of suppliers qualified by the organization to participate in its tenders. Subsequently, considering a material in particular, appropriate criteria on the ordering of the
mentioned material were determined, taking into account the particular materials' specifications as well as the organization's needs. Finally, for the purpose of validation and verification of the
proposed model, it was applied to Mobarakeh Steel Company (MSC), the qualified suppliers of this Company are ranked by the means of a Hierarchical Fuzzy TOPSIS method. The obtained results
show that the proposed algorithm is quite effective, efficient and easy to apply.
Abstract: The objective of this research is to calculate the
optimal inventory lot-sizing for each supplier and minimize the total
inventory cost which includes joint purchase cost of the products,
transaction cost for the suppliers, and holding cost for remaining
inventory. Genetic algorithms (GAs) are applied to the multi-product
and multi-period inventory lot-sizing problems with supplier
selection under storage space. Also a maximum storage space for the
decision maker in each period is considered. The decision maker
needs to determine what products to order in what quantities with
which suppliers in which periods. It is assumed that demand of
multiple products is known over a planning horizon. The problem is
formulated as a mixed integer programming and is solved with the
GAs. The detailed computation results are presented.
Abstract: Supplier selection is a multi criteria decision-making process that comprises tangible and intangible factors. The majority of previous supplier selection techniques do not consider strategic perspective. Besides, uncertainty is one of the most important obstacles in supplier selection. For the first, time in this paper, the idea of the algorithm " Knapsack " is used to select suppliers Moreover, an attempt has to be made to take the advantage of a simple numerical method for solving model .This is an innovation to resolve any ambiguity in choosing suppliers. This model has been tried in the suppliers selected in a competitive environment and according to all desired standards of quality and quantity to show the efficiency of the model, an industry sample has been uses.