https://isiarticles.com/bundles/Article/pre/pdf/19101.pdf

A review of methods supporting supplier selection

Supplier selection, the process of finding the right suppliers who are able to provide the buyer with the right quality products and/or services at the right price, at the right time and in the right quantities, is one of the most critical activities for establishing an effective supply chain. On the other hand, it is a hard problem since supplier selection is typically a multi criteria group decision-making problem involving several conflicting criteria on which decision maker's knowledge is usually vague and imprecise. In this study, TOPSIS method combined with intuitionistic fuzzy set is proposed to select appropriate supplier in group decision making environment. Intuitionistic fuzzy weighted averaging (IFWA) operator is utilized to aggregate individual opinions of decision makers for rating the importance of criteria and alternatives. Finally, a numerical example for supplier selection is given to illustrate application of intuitionistic fuzzy TOPSIS method.

A multi-criteria intuitionistic fuzzy group decision making for supplier selection with TOPSIS method

Global supplier development is a multi-criterion decision problem which includes both qualitative and quantitative factors. The global supplier selection problem is more complex than domestic one and it needs more critical analysis. The aim of this paper is to identify and discuss some of the important and critical decision criteria including risk factors for the development of an efficient system for global supplier selection. Fuzzy extended analytic hierarchy process (FEAHP) based methodology will be discussed to tackle the different decision criteria like cost, quality, service performance and supplier's profile including the risk factors involved in the selection of global supplier in the current business scenario. FEAHP is an efficient tool to handle the fuzziness of the data involved in deciding the preferences of different decision variables. The linguistic level of comparisons produced by the customers and experts for each comparison are tapped in the form triangular fuzzy numbers to construct fuzzy pair-wise comparison matrices. The implementation of the system is demonstrated by a problem having four stages of hierarchy which contains different criteria and attributes at wider perspective. The proposed model can provide not only a framework for the organization to select the global supplier but also has the capability to deploy the organization's strategy to its supplier.

Global supplier development considering risk factors using fuzzy extended AHP-based approach

SUMMARY
The purchasing function for some time now has been receiving increasing importance as a critical supply chain management component. This is mainly due to the significant impact of material costs on profits, increased investments in advanced manufacturing and information technologies, and a growing emphasis on Just-In-Time GIT) production. The critical objectives of purchasing departments include obtaining the product at the right cost in the right quantity with the right quality at the right time from the right source. This requires executing effective decisions concerning supplier selection and evaluation. This article addresses the supplier selection process. This model for evaluation and selection of suppliers considers multiple factors that include strategic, operational, tangible, and intangible measures. The model also allows for input from a variety of managerial decisionmaking levels and considers the dynamic aspects of the competitive environment in evaluating suppliers. An empirical case illustration demonstrates the efficacy of the model. The results provide interesting managerial implications.

A Model for Strategic Supplier Selection

Vendor selection of a telecommunications system is an important problem to a telecommunications company as the telecommunications system is a long-term investment for the company and the success of telecommunications services is directly aected by the vendor selection decision. Furthermore, the vendor selection of a telecommunications system is a complex multi-person, multi-criteria decision problem. The group decision-making process can be improved by a systematic and logical approach to assess priorities based on the inputs of several people from dierent functional areas within the company. The analytic hierarchy process (AHP) can be very useful in involving several decision-makers with dierent conicting objectives to arrive at a consensus decision. In this paper, an AHP-based model is formulated and applied to a real case study to examine its feasibility in selecting a vendor for a telecommunications system. The use of the proposed model indicates that it can be applied to improve the group decision making in selecting a vendor that satises customer specications. Also, it is found that the decision process is systematic and that using the proposed AHP model can reduce the time taken to select a vendor. ? 2001 Elsevier Science Ltd. All rights reserved.

An application of the AHP in vendor selection of a telecommunications system

The supplier selection problem is perhaps the most important component of the purchasing function. Some of the common and influential criteria in the selection of a supplier include quality, price, delivery, and service. 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. The Analytic Hierarchy Process (AHP) is a decision-making method for ranking alternative courses of action when multiple criteria must be considered. This article shows how AHP can be used to structure the supplier selection process. This method of selection is described, and a detailed, hypothetical example of how AHP can be used also is provided. Finally, a framework is presented that any buying organization can adapt to fit its specific set of needs. INTRODUCTION Supplier selection may be the single most important phase of the purchasing process.[1] The objection of this stage is to find the optimal supplier - not necessarily the supplier offering the best technical service or the lowest price or the shortest delivery. Thus, firms must consider multiple criteria in their attempts to distinguish between items offered by potential suppliers.[2] This article presents a framework that can be used to formalize the process of evaluating the tradeoffs between the conflicting selection criteria established by purchasers. Current Developments in Supplier Selection The past few years have seen the relationship between the buyer and the supplier change.[3] Historically adversarial or quasi-adversarial relationship between the buyer and the seller often existed. However, current business trends, including shortened product life cycles, increased rates of technological change, and foreign sourcing,[4] have given rise to a growing trend toward improved communication and cooperation between the two parties, as well as the possibility of single sourcing rather thant multiple sourcing. The implications of these recent developments are that the supplier selections decisions is becoming even more important. If buyers are less willing to change suppliers, the choice of an unacceptable supplier is more damaging than it was previously. In addition, once an acceptable supplier is identified, the buyer has an opportunity to establish a long-term relationship with the supplier, which may provide a strategic advantage.[5] The Supplier Seclection Procedure When a supplier selection decision needs to be made, the buyer generally establishes a set of evaluation criteria that can be used to compare potential sources.[6] The basic criteria typically utilized for this purpose are pricing structure, delivery (timeliness and costs), product quality, and service (i e., personnel, facilities, research and development, capability, etc.).[7] For global markets, the set of criteria is expanded to take into account the new variables an risks associated with international business transactions.[8] Frequently, these evaluation criteria conflict with one another. For example, one supplier may offer inexpensive parts that have slightly below average quality, while another supplier may offer higher quality parts, with uncertain, delivery. In addition, the importance of each criterion varies from one purchase to the next. This situation can be complicated further by the fact that some of the criteria are quantitative (price and perhaps quality) and some are qualitative (service). Thus, technique is needed that can adjust for the decision maker's attitude toward the importance of each criterion for each item, as well as capture both subjective and objective criteria. Two approaches commonly used to assess supplier performance - and subsequently to assist in the sourcing decision - are the categorical and the weighted point evaluation plans. …

Robert L. Nydick

Papers

Using the Analytic Hierarchy Process to Structure the Supplier Selection Procedure