Sustainable Supplier Selection Model in Supply Chains During the COVID-19 Pandemic

As global supply chains become more developed and complicated, supplier quality has become increasingly influential on the competitiveness of businesses during the Covid-19 pandemic. Consequently, supplier selection is an increasingly important process for any business around the globe. Choosing a supplier is a complex decision that can result in lower procurement costs and increased profits without increasing the cost or lowering the quality of the product. However, these decision-making problems can be complicated in cases with multiple potential suppliers. Vietnam's textile and garment industry, for example, has made rapid progress in recent years but is still facing great difficulties as the supply of raw materials and machinery depends heavily on foreign countries. Therefore, it is extremely important for textile and garment manufacturing companies in Vietnam to implement an effective supplier evaluation and selection process. While multicriteria decision-making models are frequently employed to assist with supplier evaluation and selection problems, few of these models consider the problem under the condition of a fuzzy decision-making environment. The aim of this paper is to create a hybrid MCDM model using the Fuzzy Analytical Hierarchy Process (FAHP) model and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) to assist the supplier selection process in the garment industry in a fuzzy decision-making environment. In this study, the FAHP method is used to evaluate the performance and the weight of each criterion. TOPSIS is then used to rank all potential suppliers. The proposed model is then applied to a real-world case study to demonstrate both the process of calculation as well as its real-world applicability. The results from the case study provide empirical evidence that the model is feasible. The proposed approach can also be used in combination with other MCDM models to better support decision makers and can be modified to be applied in similar supplier selection processes for different industries.     

A novel approach for supplier selection based on the Kano model and fuzzy MCDM

This paper proposes a three-phase approach for supplier selection based on the Kano model and fuzzy Multi Criteria Decision-Making. Since the supplier selection problem involves different criteria, quality attributes have been assumed to denote the importance weight of the criteria for supplier selection. Furthermore, to consider the inherent vagueness of human thought, a fuzzy logic has been utilised. Initially, the importance weight of the criteria has been calculated using a fuzzy Kano questionnaire and fuzzy analytic hierarchy process. In the second phase, the Fuzzy TOPSIS technique has been used to screen out in capable suppliers. Finally, in the third phase, the filtered suppliers which are qualified, once again will be evaluated by the same approach for the final ranking. The proposed approach has also been examined in a case study.     

Using integrated fuzzy DEMATEL and fuzzy C: means algorithm for supplier evaluation and selection

Decision-making techniques are used to help evaluate the current suppliers’ aim at classifying performance of individual suppliers against desired levels of performance, so as to design suitable plans to increase the performance and capabilities of suppliers. In this study, an integrated model is introduced and proposed for increasing the supplier selection and evaluation quality. The methodology is composed of two steps. The first stage is fuzzy decision-making trial and evaluation laboratory method in which the interactions between the evaluation criteria and the criteria weight have been computed. At the second stage, performances of suppliers are assessed using both the criteria weights obtained at the first stage and fuzzy c-means clustering algorithm by classifying the vendors according to their performances. Obtained results show that the proposed model is very well suited as a decision-making tool for supplier selection decisions.     

A supplier pre-selection model for multiple products with synergy effect

In practice, it is common for companies to purchase multiple products simultaneously. For the multiple required products, a large number of interested suppliers are involved. It is necessary for the purchasing company to shortlist a small number of qualified and competitive potential suppliers prior to finalising the suppliers for order fulfilment. In addition, synergy effect which is an effect arising between two or more products that produce an effect greater than the sum of their individual effects, could exist in the multi-product supplier selection environment. Since synergy effect between products can affect the choice of suppliers, it is also necessary to incorporate the synergy effect between products in the supplier selection for multiple products. However, few research efforts have been focused on the supplier pre-selection problem, let alone explicitly for multiple products with synergy effect. This paper presents a supplier pre-selection model for multiple products with synergy effect. The model is able to evaluate interested suppliers on the multiple pre-selection criteria, by the fuzzy Technique for Order Preference by Similarity to Ideal Solution (TOPSIS)-based supplier pre-selection algorithm, and shortlist a small number of potential suppliers. Illustrative examples are conducted to demonstrate the function and application of the supplier pre-selection model for multiple products with synergy effect.     

Supplier selection by testing the process incapability index

In the competitive global business environment of the 21st century, enterprises must respond effectively to customer demands. The selection of suppliers and the evaluation of their performance are becoming major challenges that face manufacturing managers. Assessing a group of suppliers and selecting one or more of them is a complex task because various criteria must be considered in the decision making process. Quality is an essential factor in qualifying a corporation to enter the marketplace. In fact, the quality of parts obtained from suppliers determines the quality of the finished product. Hence, quality is the fundamental factor for supplier evaluation among various criteria. This study applies the process incapability index C_pp to develop an evaluation model that assesses the quality performance of suppliers. The model simplifies the evaluation of suppliers, facilitates their effective selection, and provides insights into the process situation of suppliers who may enter into a long-term partnership with a company.     

Fuzzy hybrid decision model for supplier evaluation and selection

This paper proposes a structured, integrated decision model for evaluating suppliers by combining the fuzzy analytical hierarchy process (FAHP) and grey relational analysis (GRA). The qualitative and partially-known information is incorporated in this decision model using the fuzzy set theory. In this proposed methodology, the weights of the evaluation criteria are calculated by using FAHP, then the ranking of the suppliers is determined by using GRA. Finally to show the robustness of the model, a sensitivity analysis is also performed. In this study, the supplier selection problem of an electroplating industry in the southern part of India was investigated, demonstrating the effectiveness of this developed integrated model. This model can help in solving the complex decision in supplier selection practice. The results generated from the model are properly validated and finally a systematic solution with decision support is provided for decision makers. This model can be integrated with other decision support systems of similar kinds of industries.     

An integrated weighted fuzzy multi-objective model for supplier selection and order scheduling in a supply chain

This paper presents a new weighted fuzzy multi-objective model to integrated supplier selection, order quantity allocation and customer order scheduling problem to prepare a responsive and order-oriented supply chain in a make-to-order manufacturing system. Total cost and quality of purchased parts as well as the reliability of on-time delivery of customer orders are regarded as the objectives of the model. On the other hand, flexible suppliers can contribute to the responsiveness and flexibility of entire supply chain in the face of uncertain customer orders. Therefore, a mathematical measure is developed for evaluating the volume flexibility of suppliers and is considered as the other objective of the model. Furthermore, by considering the effect of interdependencies between the selection criteria and to handle inconsistent and uncertain judgments, a fuzzy analytic network process method is used to identify top suppliers and consider as the last objective. In order to optimise these objectives, the decision-maker needs to decide from which supplier to purchase parts needed to assemble the customer orders, how to allocate the demand for parts between the selected suppliers, and how to schedule the customer orders for assembled products over the planning time horizon. Numerical examples are presented and computational analysis is reported.     

Employing dynamic fuzzy membership functions to assess environmental performance in the supplier selection process

The proposed system illustrates that logic fuzzy can be used to aid management in assessing a supplier's environmental performance in the supplier selection process. A user-centred hierarchical system employing scalable fuzzy membership functions implement human priorities in the supplier selection process, with particular focus on a supplier's environmental performance. Traditionally, when evaluating supplier performance, companies have considered criteria such as price, quality, flexibility, etc. These criteria are of varying importance to individual companies pertaining to their own specific objectives. However, with environmental pressures increasing, many companies have begun to give more attention to environmental issues and, in particular, to their suppliers’ environmental performance. The framework presented here was developed to introduce efficiently environmental criteria into the existing supplier selection process and to reflect on its relevant importance to individual companies. The system presented attempts to simulate the human preference given to particular supplier selection criteria with particular focus on environmental issues when considering supplier selection. The system considers environmental data from multiple aspects of a suppliers business, and based on the relevant impact this will have on a Buying Organization, a decision is reached on the suitability of the supplier. This enables a particular supplier's strengths and weaknesses to be considered as well as considering their significance and relevance to the Buying Organization.     

Global supplier selection: a fuzzy-AHP approach

Global supplier selection has a critical effect on the competitiveness of the entire supply chain network. Research results indicate that the supplier selection process appears to be the most significant variable in deciding the success of the supply chain. It helps in achieving high quality products at lower cost with higher customer satisfaction. Apart from the common criteria such as cost and quality, this paper also discusses some of the important decision variables which can play a critical role in case of the international sourcing. The importance of the political-economic situation, geographical location, infrastructure, financial background, performance history, risk factors, etc., have also been pointed out in particularly in the case of global supplier selection. Supplier selection problem related to the global sourcing is more complex than the general domestic sourcing and as a result it needs more critical analysis, which could not be found properly in past available literatures. This paper discusses the fuzzy based Analytic Hierarchy Process (fuzzy-AHP) to efficiently tackle both quantitative and qualitative decision factors involved in selection of global supplier in current business scenario. The fuzzy-AHP is an efficient tool to tackle the fuzziness of the data involved in deciding the preferences of the different decision variables involved in the process of global supplier selection. The triangular fuzzy numbers are used to transform the linguistic comparison of the different decision criteria, sub-criteria and performance of the alternative suppliers. The pairwise comparison matrices help in deciding the synthetic extent value of each comparison and finally, the priority weights of one alternative over another are decided in this paper. An example from a manufacturing industry searching for the global supplier for a critical component is used to demonstrate the effective implementation procedure of proposed fuzzy-AHP technique. The proposed model can provide the guidelines and directions for the decision makers to effectively select their global suppliers in the current competitive business scenario.     

A distinct decision model for the evaluation and selection of a supplier for a chemical processing industry

The supplier selection process has gained importance recently due to the considerable amount of revenue spent on purchasing. The intention of this work is to develop an appropriate hybrid model by integrating the analytical hierarchy process (AHP) and grey relational analysis (GRA) for supplier evaluation and selection, which comprises three stages. In Stage I, the most influential criteria are selected by mutual-information-based feature selection. Stage II focuses on the determination of the weights of the attributes using AHP, while Stage III is used for the determination of the best supplier using GRA. The proposed model is illustrated using the case study of an electroplating industry to highlight the effectiveness and flexibility of the model. The model effectively combines specialised knowledge, experience and quantitative data to select the best suppliers. This paper presents the model development, solution and application processes of the proposed hybrid model for supplier selection. The decision support software was implemented in Excel to automate supplier selection. The proposed hybrid model is applied to enhance the decision-making process in supplier selection and also helps decision makers to effectively select suppliers.     

Pre-selection of suppliers through an integrated fuzzy analytic hierarchy process and max-min methodology

There are a variety of analytical models for supplier selection ranging from simple weighted techniques to complex mathematical programming approaches. However, these models are specifically aimed at supporting a decision maker in a single phase, especially in the final selection phase and they have failed to consider the supplier selection process from a holistic point of view. Although the methodology presented in this paper primarily focused on the prequalification of potential suppliers, the outputs of the previous phases, namely problem definition and formulation of criteria, are used as inputs in this methodology. The methodology utilises a fuzzy analytic hierarchy process (AHP) method to determine the weights of the pre-selected decision criteria, a max-min approach to maximise and minimise the supplier performances against these weighted criteria, and a non-parametric statistical test to identify an effective supplier set. This information supports decision makers in making the final selection with effective alternative choices. Potential application of the proposed methodology is demonstrated in Audio Electronics in Turkey's electronics industry.     

Supplier selection problem revisited from the perspective of product configuration

Collaboration with suppliers is essential for developing and producing a competitive product and it begins with selecting the right suppliers. This article addresses the supplier selection problem from the perspective of product configuration. We discuss first how the conventional decision models of supplier selection should be extended, considering the fact that supplier configuration requires supplier selection for each subsystem of a product. We then highlight the need to consider interrelationships between suppliers, namely, supplier–supplier relationships during the selection process of the combination of suppliers. Finally, we introduce the supplier configuration graph in order to provide a clear picture of the problem. Discussions are provided along with an example of a smartphone configuration.     

A utility-driven approach to supplier evaluation and selection: empirical validation of an integrated solution framework

Supplier evaluation and selection (SES) problems have long been studied, leading to the development of a wide range of individual and hybrid models for solving them. However, the lack of widespread diffusion of existing SES models in the industry points to a need for simpler models that can systematically evaluate both qualitative and quantitative attributes of potential suppliers while enhancing the flexibility decision-makers need to account for relevant situational factors. Furthermore, empirical validations of existing models in SES have been few and far between. With a view to addressing these issues, this paper proposes an integrated solution framework that can be used to evaluate both tangible and intangible attributes of potential suppliers. The proposed framework combines three individual methods, namely the fuzzy analytic hierarchy process, fuzzy complex proportional assessment and fuzzy linear programming. The framework is validated through application in a Turkish textile company. The results generated using the proposed framework is compared with the actual historical data collected from the company. Additionally, a feasibility assessment is conducted on the sample supplier selection criteria employed, as well as assessment of the results generated using the proposed model.     

An integration of a hybrid modified TOPSIS with a PGP model for the supplier selection with interdependent criteria

This paper deals with the supplier selection process when the criteria of selection are not independent. The primary aim is to illustrate that ignoring the interdependencies among these criteria leads to an unrealistic decision. Since supplier selection is a multiple-criteria decision-making (MCDM) process, the general structures of the relative methods are outlined in this paper. The proposed methodology then presents a comprehensive approach to find the best ranking among the alternative suppliers of a typical product. A hybrid modified TOPSIS is integrated with a preemptive goal programming model in this study and then compared to an analytical hierarchy process (AHP) to show the effect of considering interdependencies in the supplier selection process. The results indicate that the proposed methodology provides a higher total value of purchasing (TVP) than AHP while the total cost of purchasing (TCP) of both methods are equal. Empirical proof is offered based on a case study.     

A supplier performance evaluation framework using single and bi-objective DEA efficiency modelling approach: individual and cross-efficiency perspective

In view of complexities associated with supplier performance evaluation based on traditional business criterions (such as costs, quality levels, and delivery timelines) and emerging criterions (such as those related to environmental sustainability), we in this research evolve two different supplier efficiency measurement models that unify such criterions possessing characteristics of both desirable and undesirable outputs. The first model is a single-objective DEA efficiency assessment model wherein both types of outputs are integrated into a single composite efficiency measure. Using data from suppliers of Hyundai Steel Company, we determine composite efficiencies of each of these suppliers thus ranking them in terms of an overall efficiency score that would be useful as far as the first-cut supplier discrimination is concerned. However, due to the relative inability of evolved single-objective efficiency model to perform trade-offs amongst desirable and undesirable outputs and, owing to unidimensionality aspects, we evolve a goal programming based bi-objective efficiency model wherein trade-offs can be performed between both conventional and emerging dimensions criterions leading to different supplier evaluations for varied scenarios. We also integrate our evolved models with the cross-efficiency view of efficiency determination in order to enable the decision-makers to achieve peer-to-peer evaluation and maximum discrimination amongst suppliers.     

军品包装供应商评价指标体系和方法研究

目的 为了实现快速响应、可靠高效的装备（器材）和物资保障,提高军事物流整体质量,对军品包装供应商进行科学管理。方法 构建军品包装供应商的筛选模型,确立评价指标体系,提出一种集历史、现状和未来为一体的新的综合评价方法,并进行算例验证。结果 通过采用科学的评价方法,对军品包装供应商进行综合评价和遴选,解决了军品包装产品筹措和采购环节由于供应商引起的不确定性问题,使军品包装产品质量得到了有效保证。结论 建立军品包装供应商选择和评价体系,是加强供应商管理的重要基础,也是现代军事物流的重要内容,对推动军品包装发展有重要意义。     

A model for performance monitoring of suppliers

The purchasing function is central to the strategic operations of effective supply chain management. This centrality is mainly due to the significant impact of material costs on profits, increased investments in inter-organizational advanced manufacturing and information technologies, and a growing emphasis on the just-in-time operations philosophy. The critical business processes of the purchasing function include supplier selection, negotiation of supply contracts, monitoring supplier performance, and acting as an interface between an organization and its suppliers. Within these core processes of purchasing, this paper narrows its scope to focus upon the supplier performance evaluation and monitoring process, which assists in maintaining effective customer-supplier linkages. While price has been traditionally considered as the single most important factor in evaluating suppliers, it has been agreed upon that value performance emphasis needs to include other important factors such as quality, delivery and flexibility. Given this evolving business competitiveness environment, the contribution of this research is threefold. First, it applies a new multi-criteria evaluation model for supplier performance evaluation by considering various performance criteria. Second, a proposed application extension of this model serves as a monitoring and control mechanism for the performance of suppliers, thus supporting continuous process improvement to achieve efficient customer-supplier relationships. Third, the paper presents this technique as a new methodological extension to data envelopment analysis research by improving the discriminatory power of an existing variable returns to scale model. The model and its application are demonstrated through a previously published illustrative case example.     

A two-way approach to supply chain partner selection

All organisations face partner selection. It is the first step in establishing partnership. Over recent decades, a one-way selection approach has been dominant in the literature. It is assumed that a buyer searches for one or more suppliers from a set of suppliers. Once the best supplier is found and selected, a partnership is formed. However, in reality, not only is the selection not a one-way process as the relationship itself is bilateral, but the existence of other buyers and suppliers also needs to be taken into account. In this study, a two-way partner selection approach is proposed, where not only the buyers evaluate suppliers, but also the suppliers have the opportunity to evaluate buyers. Considering a marketplace where there are several buyers and suppliers, an integrative model is proposed in the form of an assignment model to optimally match all the buyers and suppliers. A generalised model is also formulated to take the suppliers’ capacity and buyers’ demand into account. The proposed models are illustrated using some numerical examples. Finally, conclusions and recommendations for future research are provided.     

基于FMEA的军队第三方物流供应商选择

目的 针对军队第三方物流供应商的选择问题,从风险视角对供应商完成军事保障任务过程中可能存在的风险进行识别和评估,以降低军事物流外包风险,为军队第三方物流供应商决策提供方法和思路。方法 提出可将FMEA技术运用于军队第三方供应商选择中的操作性框架,按照框架流程确定评价标准、识别潜在失效模式、决策分析,可更加全面、科学地对军队第三方供应商做出选择。结果 在不考虑风险的情况下,5家候选供应商中E的原始评分最高,D排名居中,但经过FMEA分析后,由于E在单项评价指标上的风险比例太大,而D的各项指标风险比原始排名靠前的供应商小很多,因此D成为军队最终选择的供应商。结论 利用FMEA分析军队第三方物流供应商选择问题,可以起到事先识别可能出现的失效模式,分析产生原因和可能导致的后果以及现有措施的可控程度,从而评估每位候选供应商在确定的评价标准中的风险大小,最后综合原始评分得出了供应商选择的结果。该方法操作简单、计算方便,能比较全面衡量军队第三方物流供应商的综合水平,有助于提高军队物资保障效率,降低物资保障风险。     

An integrated fuzzy multi-criteria group decision-making approach for green supplier evaluation

Purchasing is one of the most vital functions within a company and supplier performance evaluation is one of the most important business processes of the purchasing function. Traditionally, companies have considered factors such as price, quality, flexibility, etc. while evaluating suppliers. However, environmental pressures urge them to consider green issues. This study proposes a decision model for supplier performance evaluation by considering various environmental performance criteria. An integrated, fuzzy group decision-making approach is adopted to evaluate green supplier alternatives. More precisely, a fuzzy analytic hierarchy process (AHP) is applied to determine the relative weights of the evaluation criteria and an axiomatic design (AD)-based fuzzy group decision-making approach is applied to rank the green suppliers. Finally, a case study is given to demonstrate the potential of the methodology.