A multi-criteria decision making approach for supplier selection in the flexible packaging industry

Ciprian Cristea,Maria Cristea,G Oancea,M.V Drăgoi

doi:10.1051/matecconf/20179406002

Ciprian Cristea, Maria Cristea + Show 2 more

Open Access

https://doi.org/10.1051/matecconf/20179406002

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Abstract

The supplier selection problem represents one of the most important components of the supply chain management. This article presents a multiple criteria decision making analysis contributing to the selection of the most convenient supplier in the flexible packaging industry. Due to the fact that in today's supply chain management, the performance of potential suppliers is evaluated against multiple criteria rather than taking into account only the cost factor, the appropriate criteria in the supplier selection have been identified, and the considered variants are assessed, considering the decision maker’s preferences and existing constraints. The variants are ranked in terms of their suitability for selecting a supplier with the use of Electre III method. The results obtained from the simulation experiment suggest that this methodology is a feasible decision support model.

Highlights

In order to be up-to-date and feasible on the contemporary global market, characterized by issues like intense competition, high consumer expectations for quality products and services, low profit margins and short lead-times, enterprises need to take the advantage of any opportunity to improve their business processes [1]
Firms realize the significance of supply chain management in their organizations due to the fact that their success is not achievable without an efficient one which plays an important role in the attainment of sustained competitive advantage on the market
Chain management represents the overview of the product’s lifecycle: from the supply which focuses on obtaining raw materials, to the manufacturing of the product that focuses on transforming the obtained raw materials into finished products, to their distribution to customers through distributors, warehouses and retailers [2]

Summary

Introduction

In order to be up-to-date and feasible on the contemporary global market, characterized by issues like intense competition, high consumer expectations for quality products and services, low profit margins and short lead-times, enterprises need to take the advantage of any opportunity to improve their business processes [1]. Firms realize the significance of supply chain management in their organizations due to the fact that their success is not achievable without an efficient one which plays an important role in the attainment of sustained competitive advantage on the market. Supplier selection occupies an important position in the supply chain management, and is a research area that continually receives a relatively large amount of attention in the literature, from both practitioners and academics. Supplier selection is the process by which companies identify, evaluate and choose the suppliers to become part of their supply chain. The selection of the right suppliers is essential for enhancing the enterprises’ competitiveness and to promptly react to market requirements and innovation process [4]. Previous studies revealed that cost is not the only criterion to be considered when enterprises select the preferred suppliers. In [7] quality is considered the critical criterion, followed by deliverability, price, manufacturing capability, service, management, and technology

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