Abstract
Supplier selection is a good strategy for firms that can reduce operating costs and improve competitiveness for computer, communication and consumer electronics (3C) industry. The major aim of this research is to build a systematic approach for establishing a supplier selection model, and then prioritize improvement criteria in order to best supply chain management. The study proposed a hybrid approach by using the interpretive structural modeling (ISM) method to deal with the interrelationship among criteria, and the analytic network process (ANP) method is employed to recognize the criteria of supplier selection and evaluate with respect to environmental competency for the case of Taiwan's 3C industry. The study shows that the proposed model could be an effective and efficient decision-making tool that can be easily extended to other contexts. Especially, it has provided decision-makers and researchers with better understanding of the differences in supplier selection activity needs and specific management interventions by examining these criteria.
Highlights
Supplier selection decisions affect various functional areas from procurement of raw materials and components to production and delivery of the end products
This study has contributed to, in particular, the supplier selection literature by: (i) proposing a research framework that relates determinants to supplier selection for 3C industry, (ii) developing valid and reliable measures for the dimensions based on expert’s qualitative opinion, and (iii) developing a supplier selection hierarchical analytical structure to evaluate the factors in supplier selection using interpretive structural modeling (ISM) and analytic network process (ANP)
This study developed an effective evaluation framework to evaluate the factors in supplier selection for 3C industry
Summary
Supplier selection decisions affect various functional areas from procurement of raw materials and components to production and delivery of the end products. Selecting appropriate suppliers will significantly reduce the costs of purchasing materials and improve competitive conditions. For this reason, supplier selection problem has been gaining attention in both academic literature and industrial practice. Some have striven to apply the MCDM method to different supplier selection issues, but have assumed the criteria to be independent. It is usually using the analytic hierarchical process (AHP) to construct a model of the supplier selection problems, some main problems should be highlighted as follows. Despite the growing importance of environmental issues for supplier in the supplier selection (Lamming, Hampson 1996; Rao 2002; Srivastava 2007), it is usually excluded from earlier studies
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