A supplier selection model for the wood fiber supply industry

Abstract

The wood fiber industry has a complex and sensitive supply chain. Consumers and suppliers across the wood fiber supply industry share a highly dynamic relationship, but they lack a structured technique to evaluate and improve the flow of information and materials. The goal of this study was to develop a mathematical model based on supplier selection and assessment criteria using structured, multi-criteria decision-making methods. The first method was the analytic hierarchy process (AHP) and the second method was the Technique for Order Preference by Similarity to the Ideal Solution (TOPSIS). These methods were chosen based on their acceptance and use in previous research. The hybrid model was implemented as a software tool based on Microsoft Excel and Visual Basic. The tool improved the way in which wood product firms selected their suppliers and guaranteed that the best available alternatives were selected, thus increasing the chance of a successful supplier-consumer relationship and increasing the value that the company receives from its supplier base. Seven interviews were conducted in the wood fiber industry to validate the tool. The tool was found to be applicable and a valuable approach, as reported by most participants.