International Supplier Selection Research Articles

The Hierarchical VIKOR Method with Incomplete Information: Supplier Selection Problem

To solve a multi-criteria decision-making problem, many attempts have been made to alleviate difficulties of obtaining precise preference information attributed to time pressure, lack of data and domain knowledge, limited attention and information processing capabilities, etc. Structuring any decision problem hierarchically is known to be an efficient way of dealing with complexity and identifying the major components of the problem. In this paper, we propose the hierarchical VIKOR method that uses incomplete alternatives’ values as well as incomplete criteria weights, extending previous works that consider mostly intervals or fuzzy under a flat structure of criteria. It ranks alternatives using the aggregated scores of group utility and individual regret scores which are computed from the linear programs. To show how to use our proposed method, we exemplified an international supplier selection problem that affects the organization’s sustainable growth.

A typology for selecting an appropriate Total Landed Cost method in international supplier selection decisions

The Total Landed Cost (TLC) often comprise a large share of the total international sourcing cost and thereby determine the cost-saving potential. On the one hand, companies often have to deal with a set of different international supplier selection situations; on the other hand, the literature deals with TLC methods varying in the degree of accuracy and complexity. Up to now, a link between the different situations and the various methods is missing. In consequence, this paper develops a typology for selecting an appropriate TLC method, based on an exploratory world café method with 24 purchasing and supply chain managers.

Supplier selection of foreign trade sourcing company using ANP-VIKOR method in hesitant fuzzy environment

International supplier selection which includes different criteria can be regarded as a kind of multi-criteria decision making (MCDM) problems. By combining the analytic network process (ANP) with the Vlsekriterijumska Optimizacija I Kompromisno Resenje (VIKOR) method in hesitant fuzzy (HF) environment, this paper proposes a HF-ANP-VIKOR method. First, a novel HF-ANP approach is presented to determine the weight of each criterion. In this approach, the preference relations between criteria are hesitant fuzzy preference relations (HFPRs) whose elements are hesitant fuzzy elements (HFEs). According to the distance between two HFPRs, a new compatibility measure for HFPRs is proposed to measure the compatibility degrees of HFPRs. If the HFPRs are acceptable compatibility, they are converted into fuzzy preference relations by which the weights of sub-criteria are determined. Subsequently, extending the classical VIKOR method into HF environment, a new HF-VIKOR method is put forward to rank the alternatives. Finally, a case of Nantong uasia import and export limited company is studied to illustrate the practicability and effectiveness of the HF-ANP-VIKOR method proposed in this paper.

Supplier Selection in the International Environment: A Comparative Case of A Turkish and an Australian Company

International supplier selection, which is becoming a dominant strategy in an increasing number of sectors, is a multi-criterion decision problem. This study aims to contribute to this contemporary global issue initially by developing a multi-criteria hierarchical model for supplier selection utilizing the analytical hierarchy process (AHP). The AHP model aids decision making by quantifying the relative importance of each criterion and by ranking the suppliers. Secondly, The AHP model is augmented with a linear programming model which aims to maximize the buyer’s total value of purchasing through optimal order splitting among suppliers. The augmented model will make it possible for the decision maker to observe the hierarchy of the supplier selection decision criteria, quantify the relative importance rate for each criterion, rank the suppliers, select the best supplier(s) and realize optimal order splitting among suppliers. Thirdly, the model is applied to a Turkish chemical company and an Australian one where the results point to some important differences in the two companies’ decision criteria preferences and decision making habits. Although the findings cannot be generalized, this might pave the way for further analyses that will be conducted at country level. Comparative studies might aid not only in supplier selection but also in designing supply chains and supplier strategies.

An international supplier selection model with inventory and transportation management decisions

In this paper, we develop a mixed integer programming model for a supplier selection problem in an international context. The main features that characterize the international supplier selection are first identified. We show that when operating in an international context, the supplier selection process should consider the following issues: several buyers’ sites; inventory decisions, in particular the safety stocks that are held by buyers to cope with the delivery lead time uncertainty; inventory capacity constraints in buyers’ sites; selection of transportation modes, each having a specific delivery frequency and a transportation capacity; and multiple products and multiple time periods. Then, we propose a supplier selection model that takes into account such characteristics and that is suited for the international context. Finally, we solve the model with the commercial optimization software Cplex and we perform computational experiments based on a realistic case study from the automotive industry in order to prove the solvability and the usefulness of the model. Sensitivity analyzes are also performed for a number of model parameters.

Supplier selection in a fuzzy group setting: A method using grey related analysis and Dempster–Shafer theory

Supplier selection in a fuzzy group setting is a very important strategic decision involving decisions balancing a number of conflicting criteria and opinions from different experts. This paper uses grey related analysis and Dempster–Shafer theory to deal with this fuzzy group decision making problem. First, in the individual aggregation, grey related analysis is employed as a means to reflect uncertainty in multi-attribute models through interval numbers. Second, in the group aggregation, the Dempster–Shafer (D–S) rule of combination is used to aggregate individual preferences into a collective preference, by which the candidate alternatives are ranked and the best alternative(s) are obtained. The proposed approach uses both quantitative and qualitative data for international supplier selection. It provides alternative tools to evaluate and improve supplier selection decisions in an uncertain global market.

Integrated Fuzzy AHP and Weighted-Fuzzy Goal Programming Approach to Solve Supplier Selection Problem with Subjective Factors

Fuzzy goal programming (FGP) method used in supplier selection process shows that decision maker preferences on each fuzzy goal are not yet considered. In order to accommodate those preferences, that are stated as weight on each fuzzy goal, and called weighted fuzzy goal programming (WFGP) method. Then, the developed method is utilized to solve international supplier selection problem. There would be 4 objective functions developed i.e. to minimize net cost, to minimize late delivery, to minimize net rejected material, as well as to maximize business relationship. Maximization of business relationship objective function is intended to obtain right suppliers related to it score. Those objective functions are optimized subject to total demand, maximum supplier capacity, total purchasing cost based on owner estimate, and minimum order requested by suppliers. Linguistic variables are used to measure criterions in business relationship factor. To do so, fuzzy analytic hierarchy process (FAHP) transforms that qualitative manner in linguistic variables to numerical number as a constant in business relationship objective function. Those proposed method provides enhanced solution that represent decision maker preferences than FGP. That is exhibited with equal relationship between weighted goals value and the output of those weighted goals.

Manufacturers' understanding of their overseas distributors: the relevance of export involvement

In drawing attention to certain important gaps in the international business literature, the focus of this study is an examination of international supplier selection criteria from the perspective of both importing and exporting firms. Based upon a dual-country research design, an attempt is made specifically to investigate the presence of potentially significant differences in such criteria between Bahraini importing distributors and two groups of UK exporting manufacturers differentiated by their degree of export involvement. The findings suggest that high-involvement exporters exhibit a greater appreciation of factors affecting the import decision pertaining to overseas supplier selection, as contrasted with low-involvement exporters. The implications of the study for both export business practitioners and government policy makers are highlighted, and avenues for future research identified.

International Supplier Selection:

In drawing attention to certain important gaps in the importing literature, the paper reports on a systematic investigation of international supplier selection criteria of UK distributor firms trading with US exporting manufacturers of industrial products. In this framework, an attempt is made to explore the existence of dimensions underlying overseas supplier selection criteria and identify potential differences in perceptions of such choice criteria based upon the degree of import dependence. The findings point to the crucial role of certain product offer and supplier characteristic elements in influencing import decision making pertaining to foreign supplier selection. A number of significant differences are found to exist in international supplier selection criteria between different groups of firms in terms of import dependence. The findings have important implications for exporters and public policy makers concerned with export promotion. The limitations of the study, alongside suggestions for futur...

Positioning against foreign supply sources in an international purchasing environment

In an era of global sourcing, the multinational firm's success often hinges on its astuteness in selecting from a set of domestic and foreign suppliers. When compared with domestic supplier selection, international supplier selection decisions are fraught with countless risks and complexities. These may include the political atmosphere, tariff barriers, cultural and communication obstacles, trade regulations and agreements, currency exchange rates, cultural differences, and variations in ethical and quality standards. Consequently, the decision-making environment becomes less clear and more confusing. As business-to-business marketers search for adaptive strategies to effectively cope with this environment, new approaches appear more attractive. This article offers a multiple attribute structure for illustrating the potential advantages of a U.S. supplier over foreign suppliers and also for reducing the uncertainty associated with supplier selection in global markets. The concept is presented, and various recommendations are posited with practical illustrations.

International Supplier Selection:

In an era of global sourcing, the multinational firm′s success often hinges on the most appropriate selection of its foreign suppliers. International supplier selection, however, is very complicated and risky owing to a variety of uncontrollable and unpredictable factors affecting the decision. These factors may include political situations, tariff barriers, cultural and communication barriers, trade regulations and agreements, currency exchange rates, cultural differences, ethical standards, quality standards and so forth. Nevertheless, a vast majority of the purchasing literature still focuses on the domestic aspects and neglects international supplier selection research. Proposes multiple attribute utility theory which can help purchasing professionals to formulate viable sourcing strategies in the changing world marketplace.