Abstract
Supplier management is critical for supply chain management (SCM). The aim of supplier selection is to find an order of preference among potential suppliers. However, the ranking results for supplier selection may not be important, particularly when the performances are conflicting or have minor differences. Different criteria may have different impacts on the ranking results, and different decision makers may place different priorities on multiple criteria. Relatively worse suppliers may still have to be used for many practical reasons. One alternative is supplier development, but it has been focused on categorizing individual suppliers for possible action plans. A new framework is proposed in this research to address supplier selection and supplier development at the same time in the publishing and printing industries. First, the fuzzy analytical hierarchy process (fuzzy AHP) and data envelopment analysis (DEA) are sequentially performed to rank and select the best supplier(s) of a publishing company. In addition to ranking suppliers, a managerial analysis is proposed to assess the impact of important criteria on supplier selection in more detail. Finally, the results of the DEA are provided for direct supplier development without supplier categorization. This research shows that the proposed framework effectively addresses supplier development as well as supplier selection in the publishing and printing industries.
Highlights
The printing industry, which produces books, business cards, business forms, labels, newspapers, stationery, and other materials, is basically fragmented and diverse [1,2]
The following data envelopment analysis (DEA) model was formulated to determine the efficiency of Supplier 1 (S1) as a test decision-making unit (DMU) under evaluation, among others: E1 = Max 0.348X1 + 0.046X2 + 0.309X3 + 0.356X4 + 0.326X5 + 0.421X6 + 0.146X7 + 0.379X8 subject to
A test DMU under evaluation is inefficient in an output-oriented DEA model if a composite DMU can be identified as a linear combination of DMUs in the reference set with more outputs while keeping the current input levels
Summary
The printing industry, which produces books, business cards, business forms, labels, newspapers, stationery, and other materials, is basically fragmented and diverse [1,2]. Lima-Junior and Carpinetti [10] presented an approach for supplier evaluation and development in a manufacturing context Their approach evaluated and categorized the suppliers by using the supply chain operations reference (SCOR) model and the fuzzy technique for order of preference by similarity to ideal solution (TOPSIS). This research proposes a new framework to simultaneously tackle two problems, supplier selection and supplier development, in the publishing and printing industries. Fuzzy AHP is used to address the subjectivity and vagueness of human beings’ subjective judgments and to rank the suppliers of a publishing company while considering several criteria at the same time. This research proposes a new methodological framework based on fuzzy AHP, DEA, and a managerial analysis to simultaneously address two problems of supplier selection and supplier development.
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