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Journal ArticleDOI

Use of analytic network process in vendor selection decisions

01 Sep 2006-Benchmarking: An International Journal (Emerald Group Publishing Limited)-Vol. 13, Iss: 5, pp 566-579
TL;DR: In this article, an analytic network process (ANP) model is proposed in evaluating supplier selection process as a framework to help managers, it is shown that ANP can be used as a decision analysis tool to solve multi-criteria supplier selection problems that contain interdependencies.
Abstract: Purpose – To provide a good insight into the use of analytic network process (ANP) that is a multiple criteria decision‐making methodology in evaluating supplier selection problems.Design/methodology/approach – Supplier selection problems are multi‐objective problems which have many qualitative and quantitative concerns. In this study, an ANP model is proposed in evaluating supplier selection process as a framework to help managers.Findings – It is shown that ANP can be used as a decision analysis tool to solve multi‐criteria supplier selection problems that contain interdependencies.Research limitations/implications – ANP is a complex methodology and requires more comparisons than the traditional AHP and it increases the effort.Originality/value – Provides an effective framework to guide managers for evaluating suppliers.
Citations
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Journal ArticleDOI
TL;DR: Evidence is provided that the multi-criteria decision making approaches are better than the traditional cost-based approach, but also aids the researchers and decision makers in applying the approaches effectively.

2,000 citations


Cites background or methods from "Use of analytic network process in ..."

  • ...…Choy et al. (2003c); Kahraman et al. (2003); Talluri and Narasimhan (2004); Choy et al. (2005); Liu and Hai (2005); Talluri and Narasimhan (2005); Bayazit (2006); Perçin (2006); Sarkar and Mohapatra (2006); Chan et al. (2007); Chen and Huang (2007); Florez-Lopez (2007); Gencer and Gürpinar…...

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  • ...Bayazit (2006) Hypothetical case Flexibility; On-time delivery; Price; Delivery lead-time; Quality; Market share; Personnel capability; Process capability; Top management capability; Financial capability....

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  • ...Bayazit (2006) proposed an ANP model to tackle the supplier selection problem. There were ten evaluating criteria in the model, which were classified into supplier’s performance and capability clusters. To formulate interrelationships among all criteria, each of them was considered as a controlling factor for a pairwise comparison matrix. Gencer and Gürpinar (2007) implemented an ANP model in an electronic company to evaluate and select the most appropriate supplier with respect to various supplier evaluating criteria, which were classified into three clusters....

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  • ...…Choy et al. (2005); Ding et al. (2005); Hong et al. (2005); Seydel (2005); Talluri and Narasimhan (2005); Wang et al. (2005); Amid et al. (2006); Bayazit (2006); Garfamy (2006); Lau et al. (2006); Narasimhan et al. (2006); Ross et al. (2006); Saen (2006); Sarkar and Mohapatra (2006); Seydel…...

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  • ...…al. (2002); Choy and Lee (2003); Choy et al. (2003a); Choy et al. (2003b); Choy et al. (2004a); Choy et al. (2005) ANP 3 Sarkis and Talluri (2002); Bayazit (2006); Gencer and Gürpinar (2007) Fuzzy set theory 3 Chen et al. (2006); Sarkar and Mohapatra (2006); Florez-Lopez (2007) SMART 2 Barla…...

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Journal ArticleDOI
TL;DR: With the proposed model, manufacturers can have a better understanding of the capabilities that a green supplier must possess and can evaluate and select the most suitable green supplier for cooperation.
Abstract: With growing worldwide awareness of environmental protection, green production has become an important issue for almost every manufacturer and will determine the sustainability of a manufacturer in the long term. A performance evaluation system for green suppliers thus is necessary to determine the suitability of suppliers to cooperate with the firm. While the works on the evaluation and/or selection of suppliers are abundant, those that concern environmental issues are rather limited. Therefore, in this study, a model for evaluating green suppliers is proposed. The Delphi method is applied first to differentiate the criteria for evaluating traditional suppliers and green suppliers. A hierarchy is constructed next to help evaluate the importance of the selected criteria and the performance of green suppliers. Since experts may not identify the importance of factors clearly, the results of questionnaires may be biased. To consider the vagueness of experts' opinions, the fuzzy extended analytic hierarchy process is exploited. With the proposed model, manufacturers can have a better understanding of the capabilities that a green supplier must possess and can evaluate and select the most suitable green supplier for cooperation.

735 citations


Cites background from "Use of analytic network process in ..."

  • ...Recent works were reviewed in Kahraman, Cebeci, and Ulukan (2003), Lin and Chen (2004), Bayazit (2006), Talluri, Narasimhan, and Nair (2006), and Lee (2009). While literature related to supplier evaluation is plentiful, the works on green supplier evaluation or supplier evaluation that consider environmental factors are rather limited (Handfield, Steven, Srouft, & Melnyk, 2002; Humphreys, McIvor, & Chan, 2003b; Humphreys, Wong, & Chan, 2003a; Noci, 1997). The purchasing process becomes more complicated when environmental issues are considered. This is because green purchasing must consider the supplier’s environmental responsibility, in additional to the traditional factors such as the supplier’s costs, quality, lead-time and flexibility. The management of suppliers based on strict environmental compliance is not sufficient, and a more proactive or strategic approach is required. Noci (1997) designed a green vendor rating system for the assessment of a supplier’s environmental performance based on four environmental categories, namely, ‘green’ competencies, current environmental efficiency, suppliers’ ‘green’ image and net life cycle cost, by applying AHP....

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  • ...Recent works were reviewed in Kahraman, Cebeci, and Ulukan (2003), Lin and Chen (2004), Bayazit (2006), Talluri, Narasimhan, and Nair (2006), and Lee (2009). While literature related to supplier evaluation is plentiful, the works on green supplier evaluation or supplier evaluation that consider environmental factors are rather limited (Handfield, Steven, Srouft, & Melnyk, 2002; Humphreys, McIvor, & Chan, 2003b; Humphreys, Wong, & Chan, 2003a; Noci, 1997)....

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  • ...Recent works were reviewed in Kahraman, Cebeci, and Ulukan (2003), Lin and Chen (2004), Bayazit (2006), Talluri, Narasimhan, and Nair (2006), and Lee (2009)....

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Journal ArticleDOI
TL;DR: In this article, an analytic network process (ANP) approach is presented to incorporate the issue of hazardous substance management (HSM) into supplier selection, identifying of criteria of HSM competence is categorized into four dimensions, a multi-criteria decision model is proposed.

425 citations

Journal ArticleDOI
TL;DR: In this paper, the authors proposed a comprehensive approach based on Data Envelopment Analysis (DEA) with carbon footprint monitoring, which encourages suppliers to go green and cut down their carbon footprints and comply with emission norms along with reducing costs in order to survive competition.
Abstract: As the green movement spreads across the globe, organizations are under pressure to reduce the emissions across their supply chain. On the other hand, they need to cut supply costs to gain a competitive edge. This paper proposes Green DEA (GDEA), a comprehensive approach based on Data Envelopment Analysis (DEA) with carbon footprint monitoring. GDEA builds on an existing DEA model with weight restrictions and dual role factors, and introduces carbon footprints as necessary dual role factors with weight restrictions. Unlike other researches, GDEA incorporates heterogeneous suppliers and also takes into account regional emission compliance standards and laws. GDEA encourages suppliers to go green and cut down their carbon footprints and comply with emission norms along with reducing costs in order to survive competition. Results from model validation in a well-known automobile spare parts manufacturer in India are presented to verify the GDEA approach. Overall, GDEA cuts across a huge and varied supplier base, caters to almost all businesses, is environment-friendly and robust.

256 citations


Cites background from "Use of analytic network process in ..."

  • ...Bayazit [2] proposed an ANP approach to supplier selection....

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Journal ArticleDOI
TL;DR: In this paper, a decision support system for the sustainable supplier selection (SSS) problem in a real world textile industry located in the emerging economy of India is presented. And the results show that the supplier rankings are highly influenced by CSF's social dimensions.

232 citations

References
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Book
01 Jan 1996
TL;DR: The Analytic Network Process is particularly useful to project the future of a group or company considering all the influences and risks: economic, social, political, technological, environmental, and others.
Abstract: Decision Making with Dependence and Feedback: The Analytic Network Process : the Organization and Prioritization of Complexity #370 pages #2001 #Thomas L. Saaty #Rws Publications, 2001 #0962031798, 9780962031793 #This book shows how to make decisions when alternatives depend on criteria, but also the criteria depend on the alternatives. It shows how to cope with dependence between different groups of people, goals and criteria. The Analytic Network Process is particularly useful to project the future of a group or company considering all the influences and risks: economic, social, political, technological, environmental, and others. Accompanying ANP software is under development. file download xaxotav.pdf

3,095 citations


"Use of analytic network process in ..." refers background in this paper

  • ...The ANP is a new theory that extends the AHP to cases of dependence and feedbacks recently introduced by Saaty(2001b)...

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Journal ArticleDOI
TL;DR: This paper reviews, annotates, and classfies 74 related articles which have appeared since 1966 and specific attention is given to the criteria and analytical methods used in the vendor selection process.

2,089 citations


"Use of analytic network process in ..." refers background in this paper

  • ...Weber et al. (1991) reviewed the quantitative approaches to vendor selection problems....

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  • ...Weber et al. (1991) reviewed 74 articles which address vendor selection criteria in manufacturing and retail environment published from 1966 to 1991....

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  • ...…and evaluation strategies and hence the selection of suppliers has received considerable attention in the purchasing literature (Ellram, 1990; Weber et al., 1991; Nydick and Hill, 1992; Weber and Current, 1993; Verma and Pullman, 1998; Ghodsypour and O’Brien, 1998; Karpak et al., 2001; Boer…...

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  • ...Therefore, the increasing importance of supplier selection decisions is forcing organizations to rethink their purchasing and evaluation strategies and hence the selection of suppliers has received considerable attention in the purchasing literature (Ellram, 1990; Weber et al., 1991; Nydick and Hill, 1992; Weber and Current, 1993; Verma and Pullman, 1998; Ghodsypour and O’Brien, 1998; Karpak et al., 2001; Boer et al., 2001; Park and Krishnan, 2001; Handfield et al., 2002; Bhutta and Huq, 2002)....

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Book
22 Jun 1998
TL;DR: The role of information systems and technology in supply chain management is discussed in this article, where a conceptual model of alliance development is presented to develop a trusting relationship with partners in the supply chain and resolve conflicts in a supply chain relationship.
Abstract: 1 Introduction to Supply Chain Management Information Systems and Supply Chain Management Inventory Management across the Supply Chain Supply Chain Relationships Challenges Facing Supply Chain Managers Purpose of the Book 2 The Role of Information Systems and Technology in Supply Chain Management Introduction The Importance of Information in an Integrated Supply Chain Management Environment Interorganizational Information Systems Information Requirements Determination for a Supply Chain IOIS Information and Technology Applications for Supply Chain Management Summary 3 Managing the Flow of Materials across the Supply Chain Introduction Understanding Supply Chains Reengineering Supply Chain Logistics The Importance of Time Performance Measurement Summary 4 Developing and Maintaining Supply Chain Relationships A Conceptual Model of Alliance Development Developing a Trusting Relationship With Partners in the Supply Chain Resolving Conflicts in a Supply Chain Relationship Summary 5 Cases in Supply Chain Management Case One Consumable Computer Supplies Case Two Computer Hardware and Software Case Three Upscale Men's Shoes Case Four Biochemicals Case Five Solectron 6 Future Challenges in Supply Chain Management Sharing Risks in Interorganizational Relationships Managing the Global Supply Chain The "Greening" of the Supply Chain Design for Supply Chain Management Intelligent Information Systems When Things Go Wrong Index

1,580 citations


"Use of analytic network process in ..." refers background in this paper

  • ...Managers have come to realize that they cannot do it alone without satisfactory vendors ( Handfield and Nichols, 1999...

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Journal ArticleDOI
TL;DR: In this paper, a review of decision methods reported in the literature for supporting the supplier selection process is presented, based on an extensive search in the academic literature, and the proposed methods specifically accommodate for buying situations for which few or no decision models were published so far.

1,492 citations


"Use of analytic network process in ..." refers background or methods in this paper

  • ...Boer et al. (2001) presented a review of decision methods reported in the literature for supporting the supplier selection process....

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  • ...…attention in the purchasing literature (Ellram, 1990; Weber et al., 1991; Nydick and Hill, 1992; Weber and Current, 1993; Verma and Pullman, 1998; Ghodsypour and O’Brien, 1998; Karpak et al., 2001; Boer et al., 2001; Park and Krishnan, 2001; Handfield et al., 2002; Bhutta and Huq, 2002)....

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  • ...The common conclusion of these studies is that the multiobjective nature of supplier selection decisions (Karpak et al., 2001; Nydick and Hill, 1992; Ghodsypour and O’Brien, 1998; Boer et al., 2001)....

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  • ...Therefore, the increasing importance of supplier selection decisions is forcing organizations to rethink their purchasing and evaluation strategies and hence the selection of suppliers has received considerable attention in the purchasing literature (Ellram, 1990; Weber et al., 1991; Nydick and Hill, 1992; Weber and Current, 1993; Verma and Pullman, 1998; Ghodsypour and O’Brien, 1998; Karpak et al., 2001; Boer et al., 2001; Park and Krishnan, 2001; Handfield et al., 2002; Bhutta and Huq, 2002)....

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Journal ArticleDOI
TL;DR: An integration of a analytical hierarchy process and linear programming is proposed to consider both tangible and intangible factors in choosing the best suppliers and placing the optimum order quantities among them such that the total value of purchasing (TVP) becomes maximum.

1,199 citations