Abstract

Unexpected worldwide disruptions brought various challenges to supply chain management thus manipulating the research direction towards resilience. Since the supplier is one of the important supply chain elements, the challenges can be overcome through resilient supplier selection. Supplier selection is a multi-criteria decision-making problem where several criteria are involved. In this study, GRA-BWM-TOPSIS was proposed to evaluate resilient suppliers. Seven resilience criteria which were Quality, Lead Time, Cost, Flexibility, Visibility, Responsiveness and Financial Stability have been proposed and five experts were selected to provide judgments for the selection process. By using the proposed method, the criteria importance levels were obtained using GRA and the criteria weights were computed using BWM, together with a consistency test. TOPSIS was applied to evaluate the suppliers’ performances. Through a case study in a food manufacturing company, 10 suppliers were evaluated and ranked. A validation process was carried out and the managerial implications were provided to ensure the effectiveness of the proposed model. GRA-BWM-TOPSIS is suitable for resilient supplier selection when there are uncertainties and incomplete data.

Highlights

  • A Supply Chain (SC) consists of five main elements namely suppliers, manufacturers, distributors, retailers, and customers

  • The trend of research in supplier selection indicates that the SC focus has been shifted from conventional, green and sustainability elements towards resilience to deal with uncertainties and incomplete information caused by unexpected risks and disruptions

  • The findings showed that customization was the most important enhancer criterion whereas the most significant reducer was the capacity limit of suppliers

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Summary

Introduction

A Supply Chain (SC) consists of five main elements namely suppliers, manufacturers, distributors, retailers, and customers. Disruption risk refers to the major disruptive events such as natural disasters, human-made threats, or employee strikes including pandemics, tsunamis, earthquakes, floods, fires, transport accidents, and labor strikes These events may cause short-term or long-term negative impacts to the financial performance of SC or even economic crisis in more serious cases. The less focus on resilience elements in previous supplier selection studies [3,5] causes a lack of investigation on resilience criteria and resilient suppliers’ evaluation. Solution (TOPSIS) model is proposed for resilient supplier selection This new technique is a serial integration between three different techniques to generate better outcomes. It could provide highly consistent results of criteria weights and suppliers’ ranks by considering the problems with uncertainties and incomplete information. The conclusions and recommendations for future work are provided in the last section

Literature
MCDM Methods
GRA for Obtaining the Relative Importance of Criteria
Determination of Grey Relational Grade
BWM for Criteria Weights Calculation
Computation of Criteria Weights
Calculation of Consistency Ratio
TOPSIS for Supplier Ranking
Calculation of Weighted Standardized Decision Matrix
Proposed Framework of GRA-BWM-TOPSIS
Case Study
Weights Calculation
Ranking of Suppliers
Discussion
Validation of the Proposed Model
Managerial Implications
Conclusions
Full Text
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