Supplier ranking in mining systems in terms of quality: Case study: Public company for underground coal exploitation Resavica

Goran Stojanović ,Bojan Stojčetović,Marko Vuković ,Dejan Bogdanović

doi:10.5937/podrad1935001s

Abstract

The aim of this paper is to show the application of multi-criteria analysis (PROMETHEE method) in the selection of the suppliers which are working in the mining systems, specifically in the Public Company for the Underground Exploitation of Coal Resavica (PCUEC Resavica) – Serbia. The company ranking was done in terms of quality according to seven criteria. The criteria cover the most prominent aspects of the quality management of suppliers. Accordingly, 5 suppliers were taken into consideration. In ranking process the expert knowledge of the specialists from PCUEC Resavica was used. Firstly, the determination of the importance and the impact of certain criteria to the process of the suppliers selection was done, and after that the assessment of the suppliers according to each criteria is performed by company experts. PROMETHEE method is used for final ranking of the suppliers. Obtained results show that applied combined method gives excellent results and it can be used for solving a large scale of complex problems in mining systems.

Highlights

Suppliers selection is one of the most important task for mining managers with aim to create a long-term sustainability and stability of the company
The suppliers selection process can be seen through following phases: defining the need for a new supplier, defining the criteria for decision making, choice of the best ranking supplier and continuous monitoring, assessment, and evaluation of the chosen supplier
PROMETHEE is a ranking method based on the selection of the best preference function and the weight coefficients for each criteria

Summary

Introduction

Suppliers selection is one of the most important task for mining managers with aim to create a long-term sustainability and stability of the company. Strategic decision include forming the optimal supply chain with the suppliers who is able to follow a change in innovation in the phase of designing new products (Croom, 2001), to provide the constant supply of the raw materials, spare parts, etc. The proper choice of suppliers has important impact on organization because it can reduce the operative costs and improve the quality of its final products (Zeydan et al, 2011). The supplier selection process implies application of different statistical techniques, as well as the MultiCriteria Decision Making methods (Wu and Olson, 2008; Chai et al, 2013). The suppliers selection process can be seen through following phases: defining the need for a new supplier, defining the criteria for decision making, choice of the best ranking supplier and continuous monitoring, assessment, and evaluation of the chosen supplier. There are many studies that show different methods for the supplier selection in different contexts (Mafakheri et al, 2011; Vanteddu, 2011; Lin, 2012; Ekici, 2013; Qian, 2014)

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