Classification Of Suppliers Research Articles

A Multicriteria Customer Classification Method in Supply Chain Management

Since Kraljic’s strategic matrix was applied to supply chain management, classification of items, suppliers, and customers has become of increasing interest to research and companies. The aim of this research is to develop an easily interpretable multicriteria classification matrix method and validate it in real-world scenarios with a robustness analysis. This method assigns alternatives to one of four classes defined by critical dimensions that integrate several evaluation criteria. Initially, a global search pre-classifies the alternatives using the PROMETHEE net flows. Then, two local searches are carried out that make use of the discriminant properties of the net flow signs to improve the quality of the assignments. This approach is specifically applied to pre-classified alternatives near the boundary between two or more categories. The method has been validated by segmenting thousands of customers. Four customer segments were identified: strategic, collaborative, transactional, and non-preferred. A comparison was made between the results and those derived from an alternative method. Through an extensive sensitivity analysis, the proposed method was shown to be robust to parameter variation, highlighting its reliability in real dynamic contexts. The method provides valuable, easily interpretable information, which constitutes the basis for developing personalised strategies to enhance customer relationship management.

Classification and forecasting of sustainable-resilience suppliers via developing a novel fuzzy MIP model and DEA in the presence of zero data

Classification and forecasting of sustainable-resilience suppliers via developing a novel fuzzy MIP model and DEA in the presence of zero data

A Multi-Criteria Approach to Sustainable Risk Management of Supplier Portfolio: A Case Study at Defense Industry

Supply Chain Management plays an important role in the success and performance of businesses. Supply chains have to adapt to changes in technological advancements and customer expectations to maintain competitive advantage. On the other hand, driving factors such as risk reduction, increasing the financial performance of the supply chain, societal influence, governmental requirements and attracting customers who give importance to sustainability have been influential in the increasing interest in the concept of Sustainable Supply Chain. Therefore, businesses maintain their supply chain operations while focusing on economic, environmental and social dimensions. Additionally, the risk evaluation methods employed in supply chain management are considered to be more qualitative rather than quantitative. This study conducted in a Turkish defense industry company introduces a quantitative framework that allows the evaluation of risks and risk management practices required for sustainable supplier performance with the help of a Multi Criteria Decision Making (MCDM) approach. In this study, Analytical Hierarchy Process (AHP) and Rating Methods are applied together in order to evaluate risks through classification of critical suppliers with respect to business volume, capabilities and schedule certainty. Using this framework, Sustainable Supplier Risk Scores (SSRS) of each class of suppliers have been calculated and specific risk management practices have been determined for each class. The objective is to establish effective supply chain risk management practices, which provide long term partnership with suppliers in a business with strategic customers, high cost of production, high expectations in terms of quality and high level of supply chain risks.

A Hybrid Multi-Objective Evolutionary Algorithm-Based Semantic Foundation for Sustainable Distributed Manufacturing Systems

Rising energy prices, increasing maintenance costs, and strict environmental regimes have augmented the already existing pressure on the contemporary manufacturing environment. Although the decentralization of supply chain has led to rapid advancements in manufacturing systems, finding an efficient supplier simultaneously from the pool of available ones as per customer requirement and enhancing the process planning and scheduling functions are the predominant approaches still needed to be addressed. Therefore, this paper aims to address this issue by considering a set of gear manufacturing industries located across India as a case study. An integrated classifier-assisted evolutionary multi-objective evolutionary approach is proposed for solving the objectives of makespan, energy consumption, and increased service utilization rate, interoperability, and reliability. To execute the approach initially, text-mining-based supervised machine-learning models, namely Decision Tree, Naïve Bayes, Random Forest, and Support Vector Machines (SVM) were adopted for the classification of suppliers into task-specific suppliers. Following this, with the identified suppliers as input, the problem was formulated as a multi-objective Mixed-Integer Linear Programming (MILP) model. We then proposed a Hybrid Multi-Objective Moth Flame Optimization algorithm (HMFO) to optimize process planning and scheduling functions. Numerical experiments have been carried out with the formulated problem for 10 different instances, along with a comparison of the results with a Non-Dominated Sorting Genetic Algorithm (NSGA-II) to illustrate the feasibility of the approach.

Simultaneous Customers and Supplier’s Prioritization: An AHP-Based Fuzzy Inference Decision Support System (AHP-FIDSS)

Traditionally in supply chain management suppliers and customers are evaluated independently. This is in spite of the fact that supplier performance has direct impact on the performance of the customer. This research develops a mechanism for simultaneous evaluation and prioritization of supplier and customer using the sustainability metrics comprising economic, environment and social measures. In order to quantify the qualitative factors, priority index is introduced to measure the prioritization of customers and suppliers simultaneously. To get the priority index for each customer and supplier, a novel analytical hierarchical process-based fuzzy inference decision support system (AHP-FIDSS) has been introduced. An AHP-FIDSS involves the factor screening, hierarchical structure modeling, quantification of qualitative factors, and their conversion to quantitative values. AHP-FIDSS is knowledge-based system involving expert’s decision alternatives or logical rules. The number of input variables and their levels are proportional to the number of logical rules and rule size. In order to reduce the numbers of rules, a Taguchi orthogonal array is used that reduces the numbers of rules, thereby substantially simplifying the evaluation process A case study of a supply chain of surgical instruments has been presented for the real-time application of the proposed model. The results exhibited the simultaneous classification of customers and suppliers with respect to their priority index. Higher value of priority index indicates higher importance and vice versa. This research is useful for the supply chain mangers in procurement, sales and production to develop an importance classification for customers and suppliers in a supply chain.

Multi-objective optimisation of risk and business strategy in real-world supply networks in the presence of uncertainty

Selection of suppliers is very important for a strategic supply network (SN) design. This paper presents a novel multi-objective optimisation model for supplier selection and order allocation. In addition to a standard objective of total SN cost minimisation, two new objectives are considered: minimisation of suppliers’ risk and maximisation of achievement of a manufacturer business strategy. Uncertainty in supply lead times and non-conformance rates of delivered components causes uncertainty in the SN cost objective. These parameters are described using imprecise linguistic terms and modelled using fuzzy numbers. Risk classification of suppliers is carried out using imprecise knowledge which is modelled using fuzzy If-Then rules and embedded in the risk objective. Various experiments are carried out to analyse the trade-off between the considered objectives and the impact of SN network parameters on the suppliers’ selection and order allocation. The size of the problem that the model can handle is analysed also.

Supply chain redesign for lead-time reduction through Kraljic purchasing portfolio and AHP integration

PurposeThe purpose of this paper is to provide a flexible and extensible model for the classification of suppliers, within the purchasing guidelines and market trends of an Italian small company, leader in the production of street lamps. The model is applied to identify critical supply chains with the final objective of lead-time reduction.Design/methodology/approachThe model is obtained by the application of the purchasing portfolio analysis through the construction of Kraljic matrix. Profit impact and supply risk criteria are selected according to the main company requirements, and then prioritized by the analytical hierarchy process (AHP). Finally, supply chain lead-times are analyzed with Gantt diagrams.FindingsThe application of the model allows the determination of company criticalities in terms of high lead-times and of the involved suppliers. The analysis of critical suppliers positioning in the Kraljic matrix allows the definition of some possible strategies to implement for lead-time reduction.Research limitations/implicationsPurchasing portfolio analysis and Kraljic matrix are practical instruments to quickly frame company purchasing situation, but their application is not simple due to the numerous and different factors involved, especially in small and medium enterprises (SMEs), where resource are scarce and several constraints limit operations. The objective of the research is the development of a practical tool for strategic purchasing, simple and robust to be implemented in SMEs, with limited resources and access to quantitative supplier data.Originality/valueEvaluation criteria definition is one of the most difficult phases, such as their univocal and quantitative comparison. The problem of selecting and prioritizing both quantitative and qualitative criteria for suppliers classification is overcome with the combined application of Kraljic matrix and AHP. The newly integration of the two methodologies allows the realization of a reliable and robust model for suppliers classification, which can be easily adapted to company business strategy changes.

Predicting group membership of sustainable suppliers via data envelopment analysis and discriminant analysis

Given the fierce competition between large companies, the sustainable supply chain has been recognized as a key component of corporate responsibility in recent years. Classification of suppliers can facilitate the selection of a suitable supplier for management, which saves time and costs for the company. Data envelopment analysis (DEA) has become one of the most frequently applied tools for measuring the relative efficiency of suppliers. Standard DEA models assume that the data are deterministic. But, in many real life applications not all inputs and/or outputs are deterministic, some could be stochastic. Additionally, existence of zero data in stochastic DEA models can be a new assumption in performance evaluation of suppliers. In this paper we proposed a novel super-efficiency stochastic DEA model for measuring relative efficiency of suppliers in presence of zero data. By proposed model, all suppliers are classified into two efficient and inefficient groups based on their efficiency score. Then, to predict group membership of new supplier, a novel Stochastic MIP model is presented. The results of this study indicate the high accuracy of prediction by the proposed model. In order to application of the proposed approach, a case study is presented.

Decision making on supplier selection based on social, ethical, and environmental criteria: A study in the textile industry

The main objective of this paper is to balance social, environmental and economic criteria, alongside related ethical issues, in the supplier selection process when outsourcing activities in the textile industry. We propose a multi-criteria model to support supplier selection process, whereby suppliers are allocated to classes based on sustainability, integrating the opinions of customers and managers. The model has three phases: i) criteria definition, in which the Copeland method is used to aggregate criteria reported in the literature for a group of decision makers (customers and expert managers); ii) elicitation of the perceptions of decision-makers, about criteria and the definition of weights for these criteria using the AHP method, and iii) multi-criteria classification of suppliers performed using the ELECTRE-TRI method. A numerical application was performed in the textile sector in order to test results. The main results show that suppliers can be classified, balancing social, environmental and economic criteria and related ethical issues, considering opinions from customers and experts. The theoretical implications can benefit researchers who can apply the model in future research into economic, environmental and social interactions. Managers can use the structure presented in this model to improve supplier selection.

LOGISTICS AT AN ENTERPRISE: THE PECULIARITIES OF PROCUREMENT ACTIVITIES

The object of study is logistic activity at an enterprise. The subject of study is theoretical conceptions, methods, methodological approaches to management of logistic activities of whole enterprise and procurement activities in particular, as an important part of logistics under modern conditions of competition increase in product markets. The goal of this article is to develop theoretical conceptions of logistics of procurement activities to specify major categories and classifications. The main objectives of this article are to specify procurement activities, their tasks and classification; to specify factors that affect logistics and procurement; to improve classification of major types of procurement activities; to determine whether features of classification correspond to types of between suppliers and sellers; to draft proposals for using procurement as a methodology for managing suppliers within competitive procurement. The main research methods are analysis, synthesis, structural and logical analysis that enables solving set tasks. Results. The procurement activity is specified and considered as actions of an enterprise with competent suppliers of goods and services that are necessary to meet effective demand of ultimate customers for products whose success is based on building with suppliers who can provide better management results, conditions and expected consequences of cooperation. The feasibility of practical use of additional classification criterion the value of relations is proved, according to which following types of procurement activities are identified: periodic or nonrecurring, partnership and integrated ones. The introduction of additional classification criterion requires extending classification of suppliers according to their attractiveness to supply conditions and consequences which provide different value of of enterprises with suppliers. Conclusions. It is proved that suppliers should be singled out into three groups – low, medium and highly attractive ones, which corresponds to different values of that they can provide. Therefore, classification criterion the value of relations should be applied to types of between industrial enterprises and suppliers, and periodic (nonrecurring), partnership and integrated should be selected. They differ in grouping partnership into 3 types - insourcing/outsourcing, vertical/intersectoral and integrated according to qualitative mean level of attractiveness of suppliers. It is proved that to develop effective within purchasing process, an effective tool is methodology of procurement, which involves using practical methods and techniques that enable maximizing interests of an enterprise within competitive trades.

Supplier Relationship Management of Coal Trading Center on Perspective of Supply Chain Platform

Coal trading center is the coal supply chain platform that aggregate coal producer and coal dealer as seller, logistics and fund firms as service providers, and coal users as final clients. This paper use supply chain platform theory to analysis supplier relationship management of coal trading center, it believes coal trading center is the core firm of supply chain platform and various service providers is suppliers of the supply chain platform, supplier relationship management should use CRM system and have a close-loose classification of suppliers according to the service providing capabilities on the coal trading center platform.

Fuzzy Multicriteria ABC Supplier Classification in Global Supply Chain

The determination of the optimal purchasing strategy in enterprise that is a part of global supply chain could be performed in two steps. In step one, a classification of potential suppliers is performed in order to determine the optimal portfolio of suppliers. This is delivered by using the fuzzy multicriteria proposed ABC classification method. Uncertainties in relative importance of criteria and their values are described by linguistic expressions. Modelling of linguistic expressions is based on the fuzzy sets theory. In the second step, ranking of optimal portfolio of suppliers is performed by using the modified ELECTRE method. The obtained results represent valuable input for determining the long time purchasing strategy and building partnership with the best suppliers. The developed two-step model is verified on real life data. The obtained results indicate good compliance with the opinions management in this type of industry. It is worth to mention that the proposed model can be easily extended and adopted to the analysis of other issues of management which could be applicable in different research areas.

Using the Electronic Industry Code of Conduct to Evaluate Green Supply Chain Management: An Empirical Study of Taiwan’s Computer Industry

Electronics companies throughout Asia recognize the benefits of Green Supply Chain Management (GSCM) for gaining competitive advantage. A large majority of electronics companies in Taiwan have recently adopted the Electronic Industry Citizenship Coalition (EICC) Code of Conduct for defining and managing their social and environmental responsibilities throughout their supply chains. We surveyed 106 Tier 1 suppliers to the Taiwanese computer industry to determine their environmental performance using the EICC Code of Conduct (EICC Code) and performed Analysis of Variance (ANOVA) on the 63/106 questionnaire responses collected. We test the results to determine whether differences in product type, geographic area, and supplier size correlate with different levels of environmental performance. To our knowledge, this is the first study to analyze questionnaire data on supplier adoption to optimize the implementation of GSCM. The results suggest that characteristic classification of suppliers could be employed to enhance the efficiency of GSCM.

Classification, location and legitimacy of web-based suppliers of Viagra to the UK

to categorise online suppliers of Viagra based on their legal status, and to quantify the suppliers within each category. Google was used to search for websites offering to sell or supply either proprietary Viagra tablets or generic versions containing sildenafil citrate. Relevant websites were classified as falling into one of three categories, which were further subclassified. Simple descriptive statistics were calculated. the number of relevant sites found within the first 100 Google hits, following the removal of mirror and affiliate sites, was 44. Only 6.8% of sites identified were legitimate online pharmacies. Some 34.1% of sites offered to sell Viagra to patients in the UK without any form of medical consultation. Whether or not the online consultation offered by 59.1% of sites had to be completed in order to make a purchase could not be confirmed. The location of only three pharmacies could be ascertained; the remainder made various claims as to their location, which could not be verified. we have been unable to verify that the questionnaires used for online consultations are scrutinised by any healthcare practitioners to determine the appropriateness of the treatment sought. This represents a serious safety concern for UK residents who procure drugs for erectile dysfunction on the internet.

Supply chain risk in turbulent environments—A conceptual model for managing supply chain network risk

Supply risk or the likelihood of supply disruptions is emerging as a key challenge to supply chain management. The ability to identify which supplier has greater potential of a disruption is a critical first step in managing the frequency and impact of these disruptions that often significantly impact on the supply chain. This paper presents preliminary research concepts regarding a new approach to the identification and prediction of supply risk. This approach to the assessment and classification of suppliers is based on supplier's attributes, performances and supply chain characteristics, while it is also modified by factors in the supplier's specific environment. The challenges posed to supply chains due to a turbulent environment (both from within the industry and external influences) are examined. A new method for the assessment and classification of suppliers based on their characteristics, performances and the environment of the industry in which they operate is presented. The findings are explained within the contingency theory.

Supplier planning and selection for new product collaborative development

It has been found that selecting proper participator to involve effectively in product development process at right time and to right extent is vital to the success of product collabora- tive development. The characteristics of product structure and the classification of resources and suppliers, and the relation between them are regarded as the main factors affecting the time and degree of supplier involvement. The definition of the degree of product innovation, the classification of components and involving suppliers are proposed. In order to find the rela- tion between different types of components and involving sup- pliers, a mapping model and a design algorithm that describe the zigzag mapping process between product domain, decision domain and supplier domain are given. Considering the re- quirements of material supply chain and new product develop- ment, an index model including satisfaction, flexibility, venture and confidence indices for measuring the extent to which both the customer requirements and supplier capabilities match or mismatch is presented. The supplier’s evaluation process and algorithm are proposed subsequently. Finally, an example of supplier selection in new carriage development is given.

A Probabilistic Hierarchical Classification Model for Rating Suppliers

We develop a probabilistic approach for a hierarchical classification problem that arises in the context of total quality management, pertaining to the rating and classification of suppliers. For discussion, we focus on one of the prototypical applications regarding the hierarchical placement of software developers. The existing approaches classify a supplier into one of several classes, with certainty. In contrast, our approach assigns a positive probability to a supplier belonging to each of the several classes. The probabilistic classification will then serve as an input to any decision making procedure that is used for the actual supplier selection. We propose a normative approach for addressing this problem and illustrate it with an example from a real scenario. Since classification with certainty is often viewed as being unrealistic, the proposed approach offers an improvement over the existing methodologies. This article is geared towards readers interested in using statistical techniques for coherent decision making with a focus on problems encountered in quality management. The proposed method does not make the decision process easier; rather, by incorporating measures of uncertainty in the underlying ingredients, it makes the process better.

Information system for biomedical equipment management in a wide-area environment

An information system used in managing the inventory of equipment at the local health units (LHUs) of the Emilia Romagna region is presented. The system aims at efficient management of information on medical equipment and at supporting regional administrators in financial planning. The system uses 'classification files' and 'working files'. The classification files can be either defined at national (classification of producers, models and equipment types) or local (classification of suppliers and hospital departments) level. The working files are used to store all information necessary for the inventory of equipment in the local health unit (equipment inventory file) and results of automatic annual economic computations (residual values and amortisation quota file). Starting from data stored in the above-mentioned files the system can perform several procedures, such as control on data entry, economic computations and report printings. The main aspects of these operations are described in detail. Finally, some information on biomedical equipment of one of the largest local health units of the Emilia Romagna region, obtained from elaboration of system data, is shown and discussed.