A supplier selection life cycle approach integrating traditional and environmental criteria using the best worst method

Sustainable supplier selection: A multi-criteria intuitionistic fuzzy TOPSIS method

AHP applied to decision making of automotive industry supplier selection.Use of AHP in supplier selection gives decision maker confidence of consistency.Sensitivity analysis to check the robustness of the supplier selection decision.Proposed approach divides complex decision making into simpler hierarchy. PurposeThe purpose of this paper is to propose a decision support model for supplier selection based on analytic hierarchy process (AHP) using a case of automotive industry in a developing country of Pakistan and further performs sensitivity analysis to check the robustness of the supplier selection decision. MethodologyThe model starts by identifying the main criteria (price, quality, delivery and service) using literature review and ranking the main criteria based on experts' opinions using AHP. The second stage in the adopted methodology is the identification of sub criteria and ranking them on the basis of main criteria. Lastly perform sensitivity analysis to check the robustness of the decision using Expert Choiceź software. FindingsThe suppliers are selected and ranked based on sub criteria. Sensitivity analysis suggests the effects of changes in the main criteria on the suppliers ranking. The use of AHP in the supplier selection gives the decision maker the confidence of the consistency and the robustness throughout the process. Practical implicationsThe AHP methodology adopted in this study provides managers in automotive industry in Pakistan with the insights of the various factors that need to be considered while selecting suppliers for their organizations. The selected approach also aids them in prioritizing the criterion. Managers can utilize the hierarchical structure of adopted supplier selection methodology suggested in this study to rank the suppliers on the basis of various factors/criteria. Originality/valueThis study makes three novel contributions in supplier selection area. First, AHP is applied to automotive industry and use of AHP in the supplier selection gives decision maker the confidence of the consistency. Second, sensitivity analysis enables in understanding the effects of changes in the main criteria on the suppliers ranking and help decision maker to check the robustness throughout the process. Last, we find it important to come with a simple methodology for managers of automotive industry so that they can select the best suppliers. Moreover, this approach will also help managers in dividing the complex decision making problem into simpler hierarchy.

Designing an integrated AHP based decision support system for supplier selection in automotive industry

A new model for supplier selection in a reverse logistics system is developed.The proposed model is solved by Monte Carlo simulation and fuzzy goal programming.The effectiveness of the modeling approach is demonstrated in a real case study.The performance of the solution method in obtaining trade-off solutions is analyzed. In this research, we develop a fuzzy multi-objective mathematical model to identify and rank the candidate suppliers and find the optimal number of new and refurbished parts and final products in a reverse logistics network configuration. This modeling approach captures the inherent uncertainty in customers' demand, suppliers' capacity, and percentage of returned products as well as existence of conflicting objectives in reverse logistics systems. The objective functions in this study are defined as total profit, total defective parts, total late delivered parts, and economic risk factors associated with the candidate suppliers whereas the uncertainties are treated in a fuzzy environment. In order to avoid the subjective weighting from decision makers when solving the multi-objective model, a Monte Carlo simulation integrated with fuzzy goal programming is developed to determine the entire set of Pareto-optimal solutions of the proposed model. The effectiveness of the mathematical model and the proposed solution method in obtaining Pareto-optimal solutions is demonstrated in a numerical example from a real case study.

Fuzzy multi-objective model for supplier selection and order allocation in reverse logistics systems under supply and demand uncertainty

A systematic assessment of supplier selection literature – State-of-the-art and future scope

Many factors in the current scenario have influenced manufacturing organisations to have a competitive edge by concentrating on entire supply chains. Sourcing decisions are one of the strategic decisions because they enable companies to reduce costs and improve profit figures. The main task in sourcing is vendor selection. Recent challenges such as shortened product life cycle, just-in-time environment, and the importance of strategic partnerships in upstream chains always influence companies to prioritise vendor selection. In addition, outsourced parts and components account for a significant contribution in the cost of finished goods. Thus evaluating and selecting the right vendor is the key to business. Vendors are selected merely on the basis of cost factors in the traditional approach. However, companies eventually have understood that their approach which emphasises costs as the sole criterion is inefficient and needs to be changed. To deal with the complex process of vendor evaluation, multiple cri...

Vendor selection problem: a multi-criteria approach based on strategic decisions

A Multi Criteria Decision Making Approach for Suppliers Selection

The objective of the study is to select the best performing supplier among the group according to the prioritisation of performance criterion through the application of techniques like MISM (modified interpretive structural modelling), MICMAC (impact matrix cross-reference multiplication applied to a classification), and AHP (analytical hierarchy process). To understand the interaction between the factors and to prioritise them, MISM technique has been applied by using which weights have been calculated for the performance factors and establishing a contextual relationship between the available factors and then ranking of the factors is done based on the results obtained. In the MICMAC analysis, performance criteria are classified into four clusters depending upon their driving power and dependence power. This helps to find out which criteria are influencing the supplier selection process. AHP is used to rank the supplier to find the best one from the group of suppliers. After ranking the suppliers, sensi...

An integrated multi-objective decision making process for the performance evaluation of the vendors

To meet competitive requirements and reduce costs, many manufacturers are turning to lean manufacturing techniques. Various problems are usually faced in the implementation of lean manufacturing in the Indian micro, small and medium enterprises. This paper investigates the implementation of the lean manufacturing concept in the MSME sector. In particular, it examines the extent to which lean manufacturing can be implemented given the various financial constraints encountered in the current economic environment of India. To this end, lean implementations were conducted and studied in six Indian MSMEs. The study was conducted using structural equation modelling (SEM). The software, LISREL was used for calculating the ranking factors using TOPSIS and FUZZY TOPSIS technologies. The study was conducted with a view to elucidating the methodology of lean manufacturing that was successful, besides supporting the basic hypotheses. The final solution proposed is a systematic method postulated to improve the productivity and performance of the manufacturing industry.

Evaluating lean execution performance in Indian MSMEs using SEM and TOPSIS models

Supplier selection is considered as the most important step in the course of supply chain management, which helps in reducing the costs, improve the quality and deliver the products on time, thereby sustaining the intense pressure in the present global competing environment. Many researchers have done their research on supplier selection and evaluation, the processes which determine the success of any supply chain and proposed new ideas and methods for the same. Around 225 articles from various journals have been reviewed. Based on the research in the previous literature, all the papers have been classified into three categories – conceptual approach, empirical study and analytical models. In this paper, we present a review of the past literature on supplier selection from 134 articles which include only the categories of conceptual approach and empirical study.

H. Abdul Zubar

Papers

Vendor selection problem: a multi-criteria approach based on strategic decisions

A Multi Criteria Decision Making Approach for Suppliers Selection

An integrated multi-objective decision making process for the performance evaluation of the vendors

Evaluating lean execution performance in Indian MSMEs using SEM and TOPSIS models

Analysis of supplier selection methods through conceptual module and empirical study