Vendor Selection Decisions Research Articles

Analisa Pengambilan Keputusan Pemilihan Venodr Seragam Dengen Merode Analytical Hierarchy Proces (AHP) ( Studi Kasus General Affairs PT Penjallindo Nusantara)

Decision makers need analytical tools that allow them to solve problems. Decisions to be taken are complex with major risks such as policy formulation, decision makers often need tools in scientific, logical, and structured forms. To determine the priority stages of criteria in order to obtain the most optimal results in returning uniform vendor selection decisions at PT Penjalindo Nusantara (Metaform) using the AHP (Analytical Hierarchy Process) method. In essence, AHP is a comprehensive decision-making model by taking into account qualitative and quantitative matters. There are three main principles in problem solving in AHP, namely: Decomposition, Comparative Judgment, and Logical Concistency. Bycomparing in pairs to determine the priority weight on each criterion and alternative. One of the paired comparisons is carried out in pairwise comparisons between criteria. Vendor selection criteria include quality, price, flexibility, delivery and service criteria. . Compiling alternatives that have been determined in the form of matirx in order to obtain the assessment weight of each variable, a table of pair comparison rating scales is made. Based on the results of the AHP calculation, each weight for each venodr is obtained PT Intan of 0.62860 and the weight value of the Super Decision is 0.638683. PT Parahita as a vendor with a weight value of 0.20475 and a weight value in Super Decision of 0.203985. PT Marcapada with a weight value of 0.16665 and a weight value in Super Decision of 0.159189. So the main uniform supplier is PT Intan with the largest weight.

Implementasi Sistem Informasi Akuntansi Pembelian Kredit pada PT Athaya Mutiara Gemilang Berbasis Web dan PostgreSQL

ABSTRACT
 This practical work aims to determine the procedures and internal controls for purchasing goods on credit at PT Athaya Mutiara Gemilang. The practical work will be carried out on October 10, 2021 until November 12, 2021.
 The basic methods used in this practical work are observation, field practice, interviews, and literature study. Meanwhile, the location of practical work is taken intentionally. PT Athaya Mutiara Gemilang was chosen because the company is a company engaged in the procurement of goods and services, especially when the purchase of goods is made on credit.
 After doing practical work, it is known that the company always makes credit purchases for the goods needed. The process of recording credit purchase transactions and repayment of credit purchases is still carried out through paid websites and requires substantial funds. Therefore, tools are needed to make reporting easier, automatic, effective, and efficient. This web-based application can make it easier to record transactions and make reports, especially those related to purchasing credit for goods and make it easier to make supplier and vendor selection decisions before making credit purchases of goods.

Proposal Evaluation and Contract Performance

It is believed by many academics and practitioners that supplier and vendor selection decisions are often too focused on price, and that this excessive price focus can contribute to subpar performance in the subsequent engagement. Testing this belief is complicated by various challenges, including measuring post-award overall performance and finding variance in decision-making approaches on spend with similar characteristics. We use a novel approach, employing longitudinal U.S. federal government purchasing data, to deal with these issues. We match transactions on spend and stakeholder characteristics to focus our analysis only on comparable, non-trivial decisions. We use whether the chosen bidder was recontracted, given that the opportunity existed, as our measure of overall performance. We find that excessive price focus does lead to worse performance when there is no explicit incentive for or against focusing on price. Interestingly, we find no effect of price-based decision making on performance when selecting based primarily on price requires explicit written justification. Taken together, we infer that price-based bias occurs even when it is not incentivized, but can be muted by making it difficult to select primarily based on price.

Applications of the Fuzzy ELECTRE Method for Decision Support Systems of Cement Vendor Selection

Fuzzy ELECTRE (Elimination Et Choix Traduisant la Realité) is one of the fuzzy multi criteria decision making methods for resolving the ambiguity of concepts that are associated with decision maker’s judgments. In this paper, the proposed methods are applied to a construction company in Indonesia, that is the fuzzy ELECTRE method is applied to cement vendors recommendation problem of PT Wijaya Karya. There are four vendors (A1,A2,A3 and A4) as a recommendation for the best vendor selection. The selection of vendors of raw materials is one of the activities in supply chain management at PT Wijaya Karya. The role of the vendor will contribute to determining the success of this company. After determining the criteria that affect the vendor selection decisions, the results for fuzzy ELECTRE methods are presented.

A binary-continuous invasive weed optimization algorithm for a vendor selection problem

This paper introduces a novel and practical vendor selection problem of a firm that cooperates with multiple geographically dispersed stores. In this problem, the firm entrusts some of its business process to external vendors, and each store can split the ordered quantity between one or more potential vendors, represented as a multi-sourcing strategies. Moreover, the Cobb–Douglas demand function is utilised to establish a relationship between the market demand and the selling price; representing price-sensitive demand. This paper seeks to choose the best vendors, to allocate the stores to them, and to find the optimal values for inventory-related decisions. The approach is based on the integration of the vendor selection problem and the inventory-related decisions in order to generate additional opportunities for system-wide operational efficiency and cost-effectiveness. The aim is to minimise total cost of the firm consisting of costs associated with the vendor selection and inventory-related decisions. A novel meta-heuristic called the binary-continuous invasive weed optimization (BCIWO) algorithm that is capable of solving both binary and continuous optimization problems is developed to solve the complicated NP-hard problem. As there is no benchmark available in the literature, an efficient genetic algorithm enhanced by a multi-parent crossover operator is designed to solve the problem in order to validate the results obtained using BCIWO. The algorithms are tuned using the response surface methodology, based on which their performances are analyzed statistically. Finally, the applicability of the proposed approach and the solution methodologies are demonstrated.

Republic Electric: energizing vendor assessment

Synopsis Republic Electric is faced with the need to engage in a systematic process of evaluating vendors for its just-in-time manufacturing. The case gives students the opportunity to think through the process for vendor selection in the context of real-world constraints for a specific organization, to become acquainted with the Delphi technique for developing consensus, to gain hands-on experience with linear averaging, to engage in calculations of value indexes, and to recognize the marketing implications of effectively evaluating vendors. A key takeaway for students is the fact that vendor selection decisions are multifaceted and will vary among organizations depending on each organization’s particular strategic needs, operational constraints, and human judgment. Research methodology The case is based upon a consulting assignment with the company that is represented by Republic Electric. The experience was gained first-hand by one of the authors. Relevant courses and levels This case is targeted at undergraduate students in marketing, materials management, supply chain management, and purchasing, but can work well in a variety of business courses in which supply chains or the development of evaluation tools is studied, to include graduate classes. Theoretical bases The concept of vendor assessment is well developed in the literature and represents a pragmatic, but often neglected, step in the practice of choosing suppliers.

Study on Evaluation Index System and Methods of Vendor Selection

The quality of the vendor effects on the market competitiveness of enterprises and the whole supply chain, and the vendor selection decision is the key to supply chain management. Focusing on the problem of selecting vendors, this paper introduces the research history and the newest research trends of the design of index system of vendor evaluation and the methods of vendor selection, and presents many widespread theoretical and applications problems. Moreover, assumptions, main ideas, and conclusions of literature related to vendor selection are reviewed and commented.

Manufacturing vendor selection based on cross-entropy measure with fuzzy VIKOR method

Effective and accurate vendor selection decisions are important components for supply chain management in manufacturing factories to enhance their organizational performance. This study presented a novel performance evaluation method for tackling these group multiple criteria decision making (GMCDM) problems based on combining VIKOR method and cross-entropy measure under interval-valued fuzzy sets environment. On the other side, a new interval-valued intuitionistic fuzzy prioritized ordered weighted average operator is used to aggregate all decision matrices into a collective decision matrix. Finally, a case study of vendor selection for a manufacturing factory is given demonstrating the effectiveness of the proposed method and showing that it's more efficient and advantageous than existing TOPSIS method.

Analytic Hierarchy Process (AHP) for a Power Transmission Industry to Vendor Selection Decisions

This work attempts to develop a rule based model, to evaluate the performance of vendors, supplying components and raw materials to a multinational organization engaged in designing, manufacturing and delivering a range of products covering various stages of electric power transmission and distribution system. The analytic hierarchy process (AHP) based model, described in this work, is utilized to study the requirements of customers to select suitable vendors validate the model for ordering required components and materials for customers.

A Multiattribute Sealed-Bid Procurement Auction with Multiple Budgets for Government Vendor Selection

This paper offers a new approach to government vendor selection decisions in major public procurements. A key challenge is for government purchasing agents to select vendors that deliver the best combination of desired nonprice attributes at realistic funding levels. The mechanism proposed in this paper is a multiattribute first-price, sealed-bid procurement auction. It extends traditional price-only auctions to those in which competition takes place exclusively over attribute bundles. The model is a multiattribute auction in which a set of possible budget levels is specified. This model reveals the benefits of defining a procurement alternative in terms of its value to the buyer over a range of possible expenditures, rather than as a single point in budget-value space. This new approach leads to some interesting results. In particular, it suggests that in a fiscally constrained environment, the traditional approach of eliminating dominated alternatives could lead to suboptimal decisions. Finally, an extension of the model explicitly examines the buyer's decision problem under budget uncertainty by applying a utility function assessed over the value measure.

Multi-Objective Decision-Making In Supplier Selection: An Application Of Visual Interactive Goal Programming

<span>Supplier selection by purchasing teams in a supply chain management environment is inherently a multi-objective problem. The authors discuss one of the multiple criteria decision support systems; Visual Interactive Goal Programming (VIG), to assist purchasing teams in their vendor selection decisions. VIG is based on a multi-criteria technique known as Pareto Race. Two examples illustrate the application of VIG in different multi-objective supplier selection environments. The first example demonstrates the allocation of a single product among multiple vendors, while the second example focuses on a multiple-replenishment purchasing problem in selecting supplier and allocating orders among them. The authors conclude with a discussion of VIGs benefits and limitations.</span>

A simulation-optimization approach for integrated sourcing and inventory decisions

In this paper, we study a generalized vendor selection problem that integrates vendor selection and inventory replenishment decisions of a firm. In addition to vendor-specific procurement and management costs, we consider inventory replenishment, holding, and backorder costs explicitly to meet stationary stochastic demand faced by the firm. Our goal is to select the best set of vendors along with the optimum inventory decisions at each plant of the firm so that we minimize the system-wide total costs and achieve desired service and reliability levels. Due to uncertainties inherent in the problem related to demand observed by the firm, quality provided by vendors, and disruptions observed by vendors, we utilize a simulation-optimization approach to solve the problem. More specifically, we build a discrete-event simulation model to evaluate the objective function of the problem that works in concert with a scatter search-based metaheuristic optimization approach to search the solution space. Computational results not only provide managerial insights and measure the significance of intangible factors in the vendor selection process but also highlight the importance of computational tools such as simulation-optimization for the vendor selection problem.

Delivery performance in vendor selection decisions

Increased reliance upon outsourcing has made the issue of vendor selection even more critical to the success of the modern manufacturing organization. The usual performance measure on which selection is based has been the distribution of the vendor’s delivery lead-time (LT), often as characterized by the mean and variance. In this paper, we show that the distribution of demand per unit time (DPUT) must also be considered if an optimal decision is to be made. We consider a standard fixed quantity-reorder point ( Q, r) inventory policy. We first show that the optimal policy and the resulting costs remain invariant to changes in the mean lead-time demand (LTD) when the variance of LTD is fixed. A change in the mean LTD is completely (linearly) absorbed by the reorder point r, while the safety stock is unaffected. Intuitively, we would expect that the vendor with the shortest expected lead-time would represent the best choice. However, this expectation is not always correct and we then provide a simple rule for vendor selection based upon the coefficient of variation (CV) for the distribution of DPUT. In particular, when the CV is small (large), it pays to choose a vendor whose lead-time variance (mean) is small. A series of numerical examples illustrates the main theoretical points.

Vendor selection in a supply chain using analytic hierarchy process and genetic algorithm methods

The performance of the vendor is a key element in a company's success or failure. In order to attain the goals of low cost, consistent high quality, flexibility and quick response, companies have increasingly considered better vendor selection approaches. The overall goal of selection is to identify high-potential vendors and their quota allocations. An effective and appropriate vendor selection method is therefore very crucial to the competitiveness of companies. This paper presents a logical procedure for solving the vendor selection problem in a supply chain environment with multiple objectives. The procedure is based on a combined Analytic Hierarchy Process (AHP) and a Genetic Algorithm (GA) method. The proposed procedure has the capability to handle realistic situations and provides a decision-making tool for the vendor selection decision in a supply chain. An example is included to illustrate the approach.

Use of analytic network process in vendor selection decisions

PurposeTo provide a good insight into the use of analytic network process (ANP) that is a multiple criteria decision‐making methodology in evaluating supplier selection problems.Design/methodology/approachSupplier selection problems are multi‐objective problems which have many qualitative and quantitative concerns. In this study, an ANP model is proposed in evaluating supplier selection process as a framework to help managers.FindingsIt is shown that ANP can be used as a decision analysis tool to solve multi‐criteria supplier selection problems that contain interdependencies.Research limitations/implicationsANP is a complex methodology and requires more comparisons than the traditional AHP and it increases the effort.Originality/valueProvides an effective framework to guide managers for evaluating suppliers.

AN INTEGRATED APPROACH FOR SELECTING A VENDOR USING GREY RELATIONAL ANALYSIS

This paper develops a new model for evaluating and selecting the vendor using an integrated approach of Grey Relational Analysis (GRA) along with an Analytical Hierarchy Process (AHP) in a Forward Supply Chain Model (FSCM). The paper aims to demonstrate how the model can help in solving such decisions in practice. It also examines the structure of the decision hierarchy, whether it can represent vendor selection decisions in reality and whether it covers all key factors affecting vendor selection choices. The effectiveness of the GRA model is illustrated with an Original Equipment Manufacturing (OEM) industry in southern part of India and the results of GRA were validated using the result obtained from AHP. The proposed model helps the industry to effectively select the vendor.

Fuzzy analytical hierarchy process for evaluating and selecting a vendor in a supply chain model

The paper proposes a structured model for evaluating vendor selection using the analytical hierarchy process (AHP) and fuzzy AHP. The model is developed using evidence from an empirical study. The paper aims to demonstrate how the model can help in solving such decisions in practice. A usability evaluation of the AHP-based model with three vendors is discussed. It also examines the structure of the decision hierarchy, whether it can represent vendor selection decisions in reality and whether it covers all key factors affecting vendor selection choices. The effectiveness of the AHP model is illustrated using a company in the southern part of India and the results validated using fuzzy AHP.

Supporting the paradigm shift in vendor selection: multicriteria methods for sole‐sourcing

Procurement is an increasingly important activity within most firms, and severe financial and operational consequences can result from the failure to optimize the procurement function. The multiple criteria, including the financial significance, involved in the selection of a sole‐source vendor are addressed here. Two multicriteria approaches to decision support for vendor selection are presented and are demonstrated through an example. One approach, the simple multiattribute rating technique, is relatively widely used in selection problems. The other approach, data envelopment analysis, is rarely used in such problems but serves as a very acceptable alternative for supporting the vendor selection decision. The results from these two approaches are compared to those based upon a pure aggregation and averaging procedure. For the example being considered, both multicriteria approaches provide similar results, which differ considerably from those for pure aggregation. In addition, the short‐term financial implications are examined so as to underscore the commitment needed by management if non‐cost criteria are to be incorporated into vendor selection.

A fuzzy goal programming approach for vendor selection problem in a supply chain

A fuzzy goal programming approach is applied in this paper for solving the vendor selection problem with multiple objectives, in which some of the parameters are fuzzy in nature. A vendor selection problem has been formulated as a fuzzy mixed integer goal programming vendor selection problem that includes three primary goals: minimizing the net cost, minimizing the net rejections, and minimizing the net late deliveries subject to realistic constraints regarding buyer's demand, vendors capacity, vendors' quota flexibility, purchase value of items, budget allocation to individual vendor, etc. An illustration with a data set from a realistic situation is included to demonstrate the effectiveness of the proposed model. The proposed approach has the capability to handle realistic situations in a fuzzy environment and provides a better decision tool for the vendor selection decision in a supply chain.

Standing orders: considerations for acquisitions method

Even though a substantial amount of the library materials budget may be allocated for standing orders, this method of acquisition is frequently not given the same attention as those used for traditional monographs and serials. This article describes some of the differences in standing order material, including their shared characteristics with both monographs and serials. It also reviews factors that make some standing orders a good candidate for an approval plan. The article also enumerates some considerations in vendor selection decisions, regardless of which acquisitions method is used. The author concludes that it is definitely time to assess how these materials are acquired and which type of vendor is used and to make decisions that extend our purchasing power.