A review of multi-criteria decision making techniques for supplier evaluation and selection

Agarwal, Prince; Sahai, Manjari; Mishra, Vaibhav; Bag, Monark; Singh, Vrijendra

doi:10.5267/j.ijiec.2011.06.004

Cited by 102 publications

(62 citation statements)

References 51 publications

(53 reference statements)

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“…Supplier selection has been shown to have a great potential to improve both the buying firm's and the supplier's performance (Monczka et al, 1993;Krause, 1997;Vickery et al, 2003;Li et al, 2012). As such, this area has been researched extensively and we refer the reader to literature reviews focusing on the selection criteria and decision-making process (Weber et al, 1991;De Boer et al, 2001;Aissaoui et al, 2007;Ho et al, 2010;Agarwal et al, 2011), as well as "green" supplier selection (Govindan et al, 2013). Research has begun to shift away from more simple transaction cost economic approaches (Williamson, 1985;Dyer, 1997) and toward social capital theories (Krause et al, 2007;Carey et al, 2011), which capture more of the nuances of the inter-firm dynamics.…”

Section: Literature Reviewmentioning

confidence: 99%

Recycling procurement strategies with variable yield suppliers

Rowe

Ekşioğlu

2015

Ann Oper Res

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Companies are no longer judged on financial performance alone, but rather on their "Triple-Bottom Line", which accounts for social and environmental measures as well. This leads companies to investigate the sustainability of their operations and their products. Between the increasing cost of virgin raw materials and customers demanding post-consumer product content, manufacturers have begun looking at recycled material options. This paper addresses a procurement issue facing a polystyrene packaging manufacturer considering its optimal purchasing strategies between two suppliers -one providing virgin material, the other offering recycled material. A single-period scenario is modeled where each supplier sells product with a known yield distribution at market pricing. The manufacturer must choose whether to sole-source or dual-source, as well as determine how much material to purchase from each supplier to meet deterministic demand. Our results indicate that there is a range of prices from the recycled material supplier where dual-sourcing will lead to higher manufacturer profits compared to solesourcing. We show, based on the procurement strategy, the optimal quantities to purchase to maximize manufacturer's expected profit.We then investigate the area of supplier development and how the manufacturer can improve their expected profit by investing in their supplier's quality improvement effort. The questions addressed are how much the manufacturer would be willing to invest and how they ensure the proper return on their investment. This paper determines the expected increase in profit for the manufacturer from yield improvement projects at a supplier, which therefore becomes the upper threshold for investment. We also find that a company can err in their project acceptance criteria if they have an approval process that views project acceptance myopically rather than holistically.Lastly, we develop a systematic and comprehensive approach to the supplier selection process. We utilize the fundamental concepts behind W. Edwards Deming's Plan-Do-Study-Act improvement cycle and apply them to the supplier selection process.We also present analytic and numerical study results that can be used in conjunction with contractual mechanisms to not only overcome issues such as free riding, but to also incentivize suppliers to engage in supplier development projects they may not have otherwise undertaken. In order to understand why companies have become more attentive to the issue of recycling, one must look back over the past few decades. Firms have faced increased scrutiny on the environmental impact surrounding the disposal of consumer goods, the disposition of production by-products, and how they act as corporate citizens. No longer are companies judged solely on their financial measurements. They are now being evaluated on the "Triple Bottom Line". This metric measures a firm's social and environmental performance, as well as its economic performance. Manufacturers must 2 now address how their products impact the environment...

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Section: Literature Reviewmentioning

confidence: 99%

Recycling procurement strategies with variable yield suppliers

Rowe

Ekşioğlu

2015

Ann Oper Res

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“…These criteria are related with a supplier's consideration to environmental and safety issues. Most of these criteria are qualitative and unstable in nature and, therefore, a fuzzybased multi-criteria decision making (MCDM) method can be proven beneficial for their characterization [5]. In the category of fuzzy-based MCDM, two classes of methods can be broadly identified.…”

Section: Biomass Supplier Evaluation Criteria and Supplier Selection mentioning

confidence: 99%

A Hybrid Method for Evaluating Biomass Suppliers – Use of Intuitionistic Fuzzy Sets and Multi-Periodic Optimization

Gerogiannis

Kazantzi

Ανθόπουλος

2012

IFIP Advances in Information and Communication Technology

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Abstract. Evaluation of biomass suppliers is a time-dependent problem that requires assessment of different supply schemes in different periods. This paper presents a hybrid method for evaluating biomass suppliers that combines Intuitionistic Fuzzy Sets (IFS), linear programming (LP) and multi-periodic optimization (MPO). IFS allow evaluators to express their hesitation when they assess alternative suppliers. LP is used to estimate weights of evaluation criteria and calculate suppliers' ratings in a specific period. These ratings are utilized by a MPO model to determine what type and how much feedstock should be supplied by each supplier in each period.

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“…These models comprise such practices, as the AHP, ANP, CBR, DEA, fuzzy set theory, GA, mathematical programming, SMART, and their hybrid variants. Different researchers have studied the works in the past relating the supplier evaluation and selection problem [12,13,14,15,16,17,18,19,20,21,22,23,24]. At the present time, sustainable development has turn out to be a buzzword that acknowledged a lot of attentions in numerous fields like manufacturing [25], business development [26], tourism [27] and agriculture [28].…”

Section: Sustainable Supplier Selection (Sss)mentioning

confidence: 99%

A Novel Approach for Sustainable Supplier Selection Using Differential Evolution: A Case on Pulp and Paper Industry

Jauhar

Pant

Abraham

2014

Advances in Intelligent Systems and Computing

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Abstract. Diverse sustainable supplier selection (SSS) methodologies have been suggested by the practitioners in earlier, to find a solution to the SSS problem. A SSS problem fundamentally is a multi-criteria practice. It is a judgment of tactical significance to enterprises. The nature of this decision usually is difficult and unstructured. Optimization practices might be useful tools for these types of decision-making difficulties. During last few years, Differential Evolution has arisen as a dominating tool used for solving a variety of problems arising in numerous fields. In the current study, we present an approach to find a solution to the SSS problem using Differential Evolution in pulp and paper industry. Hence this paper presents a novel approach is to practice Differential Evolution to select the efficient sustainable suppliers providing the maximum fulfillment for the sustainable criteria determined. Finally, an illustrative example on pulp and paper industry validates the application of the present approach.

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A review of multi-criteria decision making techniques for supplier evaluation and selection

Cited by 102 publications

References 51 publications

Recycling procurement strategies with variable yield suppliers

Recycling procurement strategies with variable yield suppliers

A Hybrid Method for Evaluating Biomass Suppliers – Use of Intuitionistic Fuzzy Sets and Multi-Periodic Optimization

A Novel Approach for Sustainable Supplier Selection Using Differential Evolution: A Case on Pulp and Paper Industry

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