Supplier Selection Method Research Articles

A framework for sustainable supplier selection with transportation criteria

ABSTRACTAppropriate suppliers are essential for optimizing cost in contemporary supply chain decisions. Supplier selection is a challenging issue that requires the evaluation of both quantitative and qualitative criteria based on imprecise and limited information. This study proposes a framework to assess sustainable supplier selection methods using a fuzzy analytical hierarchy process (FAHP) and the preference ranking organization method for enrichment evaluation (PROMETHEE). Based on a literature review and expert opinions, 20 sustainable supplier selection criteria were grouped into economic, environmental, social, and transportation dimensions. FAHP was then used to determine the weights of the criteria and PROMETHEE was used to rank the suppliers. The proposed framework was implemented in a ready-made garment company in Bangladesh. The findings showed that ‘price of product,’ ‘profit on product,’ ‘quality of product,’ ‘environmental management system,’ and ‘green packaging and labeling’ were the top five sustainable supplier selection criteria. Business professionals and managers will benefit from this study when identifying suppliers to ensure sustainability in the supply chain.

Supplier selection using a flexible interval-valued fuzzy VIKOR

One of the major issues in a supply chain (SC) is the selection of the appropriate supplier. Supplier selection (SS) plays a vital role in achieving an effective and successful SC, hence gaining a competitive advantage. This article proposes a novel flexible multi-attribute group decision-making method for SS based on VIseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) using interval-valued fuzzy sets (IVFSs). The method avoids defuzzification, minimizes the computations, and considers the decision-makers’ optimism level. Avoiding defuzzification keeps the characteristics of (IVFSs) and prevents the loss of information. To minimize the computations, two main modifications are done. While all VIKOR-based techniques use both the best and the worst solutions; the proposed VIKOR uses the best solution only, and the division operations by the difference between two fuzzy sets to compute the separation measures and the index Q are eliminated. Ranking plays a crucial role in VIKOR, since three ranking lists are required. The signed distance is modified and used for ranking due to its simple, few computations. None of the previously VIKOR-based techniques accounted for the decision-makers’ optimism level. Therefore, the signed distance is used in its basic form to keep the α-level explicitly in the ranking formula. Thus, the proposed technique preserves fuzziness, reduces the computations substantially, and allows the participation of the decision-makers through the optimism level. Two examples are solved: one for illustration and the other to compare the results with previously used methods.

Double quantitative fuzzy rough set-based improved AHP method and application to supplier selection decision making

Selecting excellent supplier is the foundation of establishing efficient supply chain. This paper presents a novel hybrid model for supplier selection decision making problem by combining double quantitative fuzzy rough set and analytic hierarchy process (AHP), namely $$Fuzzy-AHP$$. we first transform the supplier decision-making into a rough-approximation problem in the double quantization decision approximation space with fuzzy decision objects, and then construct a new supplier selection decision model and method based on double-quantitative fuzzy rough sets. Then, the double quantitative fuzzy rough set is utilized to calculate the upper and lower approximations of the fuzzy decision object in the quantitative approximation space. Furthermore, the lower and upper approximations are applied to establish the pairwise comparison matrix and analytic hierarchy process is employed to rank these suppliers comprehensively. Finally, an experiment study with six ERP bidder in an Indian mining behemoth is carried out in this paper. The results reveal that the proposed technique can select effective suppliers, but also realize a comprehensive ranking. This research has enriched the methodology of supplier evaluation and selection, as well as owns theoretical value in exploring the coordinated development of supply chain to some extent.

ОСНОВНІ ТЕНДЕНЦІЇ УКРАЇНСЬКОГО РИНКУ ПУБЛІЧНИХ ЗАКУПІВЕЛЬ У 2018 РОЦІ

The paper presents an overview of the general framework for public procurement system functioning in Ukraine. Insights are provided on the key trends in the sector of public purchase of goods, works and services by customers in 2018. Specific features of each of the procurement procedures based on quantitative and qualitative indicators across Ukraine’s regions have been identified. A thorough analysis of the structure of the Ukrainian public procurement market laid the basis for public procurement classification subject to market trends and in compliance with applicable laws and regulations. Thus, all public purchase of goods, works and services conducted in Ukraine depending on the supplier selection method can be divided into two large groups: competitive and non-competitive procedures. Within competitive procurement procedures at the stage of a supplier selection, holding an electronic auction is mandatory, whereas under the non-competitive procurement process, customers select the supplier at their own discretion with regard to the current realia of economic, social and legal public procurement market environment. The top five regions-customers who use competitive procurement procedures are represented by Kyiv region (about 39,81% of the cost of total open bidding), Dnipropetrovsk (of 7.91%), Lviv (6,0%), Kharkiv (5,69%) and Donetsk regions (5,25%). Among the leaders of the regions-customers following non-competitive procurement procedures, the top five include Kyiv, Kharkiv, Odesa, Dnipropetrovsk and Donetsk regions. At large, public procurement refers to transactions on purchase and sale of tangible and intangible goods at the expense of budget expenditure, social security funds, funds from the Central Bank of Ukraine, financing by the state-owned and communal ownership enterprises with government share of more than 50% of the equity capital. To attain the goal and objectives set in this study, general research methods such as the read-across approach, methods of system analysis and synthesis were employed.

A New Multi-Criteria Assessment Model Combining GRA Techniques with Intuitionistic Fuzzy Entropy-Based TOPSIS Method for Sustainable Building Materials Supplier Selection

A new multi-criteria assessment model is proposed in this paper, which combines grey relational analysis (GRA) techniques with intuitionistic fuzzy entropy-based Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method, to solve multi-criteria decision making (MCDM) problems and to sort the alternatives. Generally speaking, the supplier selection process, by which buyers choose to find the right supplier of the high-quality products or/and services within the scheduled and quantity, is one of the most important key activities in constructing an effective and timely supply chain. On account of several conflicting attributes on which the knowledge of decision makers is often inaccurate and vague, this is a difficult problem. The contribution of this paper is not only to substitute objective weights of intuitionistic fuzzy entropy for subjective weights directly made by decision-makers in the TOPSIS method, but also to extend and modify this method with intuitionistic fuzzy sets and GRA techniques, and to propose the intuitionistic fuzzy entropy-based TOPSIS method combined with GRA techniques for selecting appropriate sustainable building materials supplier. Finally, we take the choice of sustainable building materials supplier as an example to illustrate the alternative effectively chosen by the intuitionistic fuzzy entropy-based TOPSIS method combined with GRA techniques.

An integrated chance-constrained stochastic model for a mobile phone closed-loop supply chain network with supplier selection

One of the important concerns in the world is electronic waste (e-waste). Ending up e-waste in the landfill and inappropriate disposing of it are hazardous to the environment. The goal of this research is to design and optimize a multi-period, multi-product, multi-echelon, and multi-customer Closed-Loop Supply Chain (CLSC) network for a mobile phone network considering different types of product returns. Commercial, end of life, and end-of-use returns are well-known in practice. In this research, a multi-objective mixed-integer linear programming formulation with stochastic demand and return is proposed to maximize the total profit in the mobile phone CLSC network, alongside maximizing the weights of eligible suppliers which are estimated based on a fuzzy method for efficient supplier selection and order allocation. The goal is to determine the appropriate location and number of different facilities including suppliers, manufacturers, retailers, drop-off centres, and consolidation centres as well as the amount of required materials to produce a mobile phone, and the number of products that should be transported between various facilities. The application of the proposed mathematical model is illustrated in Toronto, Canada using real maps.

Parallel Optimization Method for Product Configuration and Supplier Selection Based On Interval

In order to realize the rapid product design and development under the uncertain environment, an optimization decision theory and method of product configuration and supplier selection based on interval information is proposed. This study proposes to combine the product configuration and supplier selection, consider multiple uncertain factors existing in the process of development, and express multiple uncertainties with interval numbers, establish an integrated optimization model for interval-based product configuration and supplier selection with product cost, delivery period and product performance as the objective function. By redefining the Pareto dominance relation of the objective function value as interval, the NSGA-II algorithm is improved, and then a series of configuration options are obtained by directly solving the interval type integration model. Finally, the typical lathe products are used to verify the method.

Supplier Evaluation and Selection Method Based on Multi-attribute Granulation

Enterprise plays the role of resource amplifier or resource converter in production activities, whose function is often closely related to the activities in a value chain. The procurement activity of the enterprise is one of the key links in a value chain. Supplier evaluation and selection in the procurement activity is critical to the quality of the final product. To deal with the problem that multiple attribute decision was there, determination of attribute weights was uncertain, and fast computation could not be achieved in traditional supplier evaluation and selection research. The granular computing is applied to supplier evaluation and selection research, which a multi-attribute based on bit granular matrix is used to study supplier evaluation and selection problem in a value chain. The attribute redundancy of evaluation index in mixed information is solved in this paper by using the knowledge reduction method of granular computing theory. The attribute weight matrix is calculated by the calculation method of attribute index weight based on knowledge, which is used to evaluate the importance of attributes. The experimental results show that this method can provide the reference for enterprises to select suppliers quickly and efficiently.

Best Value Procurement (BVP) in Norwegian Construction Projects

The traditional contractor selection method, based on lowest price, has resulted in conflict, low quality products and a waste of resources. The need for an alternative supplier selection method has resulted in Best Value Procurement (BVP). BVP seeks to increase project value by utilizing the expertise of the contractor, while reducing the client’s management, direction and control. Currently, pilot projects in the Norwegian construction industry are testing the method. This paper addresses 1) how BVP is implemented in practice, 2) what the experiences with BVP are, and 3) how BVP should be performed in future projects. The research was carried out through a literature study and two Norwegian case studies. A building project and a medium-size infrastructure project in the Norwegian public sector were investigated through nine semi-structured, in-depth interviews and document studies. The findings show that the practical use of BVP is in accordance with the theoretical approach. Furthermore, the experiences with BVP are mainly positive. However, some challenges have been identified, such as the clients’ and contractors’ lack of knowledge and experience with the BVP method. This may reduce the potential project value. The conclusion is that BVP is an effective and promising method for contractor selection and project management. However, for the success of future projects using the method, clients and contractors may benefit from more knowledge and experience with BVP. This can be done by training and by being persistent in using BVP in future projects. This paper is a revised version of a paper that has been published in the proceedings of the Creative Construction Conference 2018.

Novel green supplier selection method by combining quality function deployment with partitioned Bonferroni mean operator in interval type-2 fuzzy environment

Green supplier selection (GSS) plays a significant role in promoting enterprise development. Quality function deployment (QFD) ensures that green supplier assessment criteria are in accordance with the characteristics that purchased products ought to possess. The partitioned Bonferroni mean (PBM) operator assumes that all criteria are partitioned into several clusters, where criteria in the same clusters are interrelated, while criteria in different clusters are irrelevant, and it can be used to deal with GSS problems in which all criteria are partitioned into several clusters. Furthermore, interval type-2 fuzzy sets (IT2FSs) can efficiently express vagueness and imprecision, and possess powerful processing abilities. In this paper, we propose a novel GSS method by combining QFD with the PBM operator in the context of IT2FSs. Firstly, we present the interval type-2 fuzzy PBM (IT2FPBM) operator and interval type-2 fuzzy weighted PBM (IT2FWPBM) operator, and discuss several of their properties. Thereafter, we transform the preference values of the importance degrees of customer needs (CNs) into those of technical criteria (TC) through the relationships between CNs and TC, based on QFD. Moreover, the criteria are partitioned on the basis of the literature review on GSS criteria. Finally, a bike-share case is used to illustrate the applicability of the presented method, and various comparisons are used to display the superiority of the presented method.

A Supplier Selection Method Based on AHP

A supplier selection method based on AHP(Analytic Hierarchy Process) is proposed in this paper. It has universal applicability for supplier selection and provides a very useful reference for enterprises to improve supplier selection.

An Aggregated Supplier Selection Method Based on QFD and TOPSIS (Case Study: A Financial Institution)

With daily development of information technology supply chain of service-based organizations like financial institutions and the increased value of outsourced activities, also the importance of customer satisfaction, outsourced affairs must have done by the suppliers who have the ability of accomplishing the organizational demands. To mitigate the risk of invalid supplier selections, verification and selection of the suppliers should be performed with an optimized and systematic solution. In order to help the selection of suppliers in the IT department of financial organizations, a different model by using a hybrid QFD-TOPSIS solution in MCDM methods is suggested, in this study. First goal of the provided model is finding the most related criteria and the second one is offering an optimized solution to the supplier selection problem. To begin the QFD part in the mentioned method, two categories of criteria are needed. Then, after the formation of the House of Quality, in a real case study that was performed in a private bank in Iran, the suppliers are ranked by using the proposed method. The greatest efficiencies of this method are not only finding the best supplier by measuring the nearest distance to the ideal and the farthest one to the negative-ideal solution but also closing the opinions of employers to the technical requirements (sub-criteria) of information technology supplier qualifications. Finally, a model reliability part is designed to indicate the validation of the proposed method and a sensitivity analysis is implemented to find the most sensitive sub-criteria. That is the results of ranking alter if sensitive sub-criteria change .

Mapping Supplier Selection Methods and Criteria in the Scoring and Assessment Sourcing Process: Case of Logistics Activities

This research brings to evidence interesting associations between supplier selection methods and criteria when outsourcing logistics activities. The study was conducted in two phases. First phase dealt with a systematic literature review that was carried out to identify characteristics of the supplier scoring and assessment process. It generated an exhaustive presentation and classification of supplier selection methods and criteria needed for evaluation and selection of logistics suppliers. Second phase handled an association analysis which allowed to unfold interesting associations between supplier selection methods and criteria. This research study yielded important findings, that is, the criteria and methods typically used for supplier scoring and assessment are not homogeneous across logistics activities. In general, each logistics activity is linked to specific selection methods and criteria. Meanwhile, some interesting high order association rules linking supplier selection methods to selection criteria emerged to be commonly used across all the logistics activities.

Supplier Evaluation with Environmental Aspects and Common DEA Weights

Supplier selection is an important business decision. Beside traditional management criteria the environmental aspects are getting often recognition. In this paper the method of Data Envelopment Analysis (DEA) is used to study the extension of traditional supplier selection methods with environmental factors. The focus will be on the weight selection process which can control the selection. In this method we divide the criteria in two manners: the traditional and environmental (green) factors. Then with the help of DEA we are searching a weight system with which the environmental criteria can influence the decision with a representation of the green factors. To choose the mentioned weight system, we apply DEA (Data Envelopment Analysis) with common weights analysis (CWA) method. In this case of DEA/CWA the common weights are calculated with a linear programming problem.

Sustainable supplier selection based on AHPSort II in interval type-2 fuzzy environment

With increasing attention on protecting the environment and social involvement, the concept of sustainable development has been widely mentioned in various industries. A new management mode, sustainable supply chain management (SSCM), has come into being and has become a hot topic of discussion. As sustainable supplier selection is the most important issue in this mode, many multiple criteria decision-making (MCDM) methods for sustainable supplier selection have been proposed, though sometimes it is more useful the sorting of suppliers into classes that show the performance of such suppliers. Therefore, this paper proposes the use of the sorting method, AHPSort II, under a fuzzy environment with interval type-2 fuzzy sets (IT2FSs) and a new way of selecting representative points for inferring suppliers’ priorities that will improve the management of unclear class assignments by softening transitions between classes facilitating the sustainable supplier selection. A significant reduction of comparisons compared to the AHP method together a higher precision of inferred priorities is occurred. This novel IT2FS sorting MCDM makes decisions become more in line with reality because of a better management of uncertainty and more accurate priorities. Finally, an application of the previous method to the selection of a sustainable material supplier is provided to show how the proposed method worked.

Analyzing the Process of Supplier Selection Criteria and Methods

Supplier selection is the process by which firms identify, evaluate, and contract with suppliers. The supplier selection process deploys an enormous amount of a firm’s financial resources and plays crucial role for the success of any organization. The main objective of supplier selection process is to reduce purchase risk, maximize overall value to the purchaser, and develop closeness and long-term relationships between buyers and suppliers. The literature on supplier selection criteria and methods is full of various analytical approaches. Some researchers have developed hybrid models by combining more than one type of selection methods. The current paper provides an overall picture of research on supply chain management, supplier selection criteria and supplier selection evaluation methods (multi-criteria decision making). A summary of the process of supplier selection can be helpful for companies to have a clear understanding of the concept in order to improve their success and competitiveness. The results show that the application of a structured decision-making technique is vital, especially under the complex conditions that include both qualitative and quantitative criteria.

A rapid method for sustainable supplier selection in pharmaceutical distribution companies under uncertainty circumstance

According to rapid changing in firms' environment, managers have to select suppliers faster to survive in the competitive market. Nowadays, global community expect companies to consider the environmental and social aspects of their decisions. In this study, rapid technique has been used to prioritise suppliers considering three bottom lines of sustainability, i.e., economic, social, and environmental aspects in field of pharmaceutical industry in uncertain conditions. This method is useful for managers to select suppliers rapidly and sustainably in unsure circumstance. In this research, important factors for selecting suppliers have been chosen. By using fuzzy AHP technique in uncertainty circumstance and the automatic clustering of data in decision table via genetic algorithm (to reduce the calculations of decision table), suppliers would be prioritised. This method was tested in Daroupakhsh pharmaceutical distribution company in Iran to prioritise suppliers of Clopidogrel drug.

A rapid method for sustainable supplier selection in pharmaceutical distribution companies under uncertainty circumstance

According to rapid changing in firms' environment, managers have to select suppliers faster to survive in the competitive market. Nowadays, global community expect companies to consider the environmental and social aspects of their decisions. In this study, rapid technique has been used to prioritise suppliers considering three bottom lines of sustainability, i.e., economic, social, and environmental aspects in field of pharmaceutical industry in uncertain conditions. This method is useful for managers to select suppliers rapidly and sustainably in unsure circumstance. In this research, important factors for selecting suppliers have been chosen. By using fuzzy AHP technique in uncertainty circumstance and the automatic clustering of data in decision table via genetic algorithm (to reduce the calculations of decision table), suppliers would be prioritised. This method was tested in Daroupakhsh pharmaceutical distribution company in Iran to prioritise suppliers of Clopidogrel drug.

The significance of supplier performance management in quality improvement - a case of construction equipment manufacturing

The competitive market situation of today's global marketplace is undergoing changes. Customers demand more variety, better quality, and greater service in terms of reliability and response time. The success in this situation is very much determined by how a company forms the entire system, mainly focusing on supplier management. A supplier plays a very imperative role as the product cost, quality, and service deliverables as they are highly dependent on the supplier performance. Besides cost and quality, an efficient delivery that can respond quickly to the customer demand is also an important issue in the customer-oriented economics nowadays. The need for the development of rudimentary but effective supplier selection method and its implementation is required to improve the product quality and delivery performance, which in turns increases the customer satisfaction. This work presents a development of supplier selection and performance management framework in a construction equipment manufacturing company. The problem of customer rejection due to suppliers has been significantly reduced; almost 60% reduction whereas improvement in production delay due to non-availability of purchased material is excellent. In the past, almost production was stopped but after implementation, it has been seen hardly interrupted. The problem is reduced to only 1%.

Methods Supporting Supplier Selection Processes – Knowledge-based Approach

Nowadays, companies have to improve their practices in the management of sustainable supply chain with increased awareness of environmental, economic and social issues globally. Selecting the optimum sustainable supplier is crucial for sustainable supply chain management, which is a challenging multi-dimensional problem. From a systematic perspective, sustainable supplier selection problem can be separated into two parts, including criteria and methods. This paper concentrates on the method selection aspects, referring to their application examples. Thus, the objectives of this paper are twofold: one is to summarize the literature on supplier selection issues from related articles, then to present an attempt to ontology-based approach to handling knowledge about sustainable supplier selection methods. To meet this aim, ontology-based model is proposed to synthetize the knowledge of analyzed methods and related papers. Finally, the proposed ontology-based model is demonstrated by an empirical example of using competency questions to confirm its correctness and effectiveness.