Dynamic weights approach for off‐line sequencing of supplier selection over a finite planning horizon

Abstract

Purpose -The purpose of this paper is to develop a user-oriented decision-supporting applicable tool for selection of a single supplier out of a group of potential suppliers in a dynamic business environment over a finite planning horizon. Design/methodology/approach -A qualitative and quantitative description of the impact of a change in one or several business environment parameters on current and future supplier choice; the methodology is accompanied by a visual representation of those impacts for the decision maker. The paper presents extended simulation experiments to test the proposed methodology. Findings -A strategy of replacing suppliers over a definite planning horizon based on a forecast of the business environment is significantly (2-9 per cent) more efficient than a strategy of relying on a single leading supplier throughout the planning horizon. This efficiency gain is greater the more the business environment is dynamic. Practical implications -The proposed methodology is applicable to a broad range of service and manufacturing organizations that operate in dynamic business environments and rely on complex purchasing systems. Thanks to its simplicity, it can be applied to very large systems with a broad range of selection and/or environmental parameters. Originality/value -Although the supplier selection process has been extensively studied, the literature still lacks appropriate reference to the effects of a dynamic business environment on this process.

A hybrid QFD-based approach in addressing supplier selection problem in product improvement process

“…The suggested method is responsive enough to determine the new best supplier as soon as the priority of CNs changes. Changing suppliers frequently might not be desirable, but as Herbon et al (2012) say: "Whenever extreme changes mean that a certain supplier cannot meet requirements or that continuing the contract is not worthwhile, the supplier selection process must be reviewed". However, even when a company prefers to have a long-term relationship with a supplier, it is better to know that at any specific level of the performance of the company, which supplier is the best and how much better than the others it is.…”

“…Accounting for relations and inner relations between the criteria as well as the objectives makes the ANP-QFD more realistic and more reliable for the selecting process (Ordoobadi, 2012). Jabour and Jabour (2009) According to Herbon et al (2012), instead of working on price reduction, it would be more effective to work on some other processes such as supplier selection to receive the proper raw materials (Herbon et al, 2012). Wu (2009) investigates the effects of uncertainty on supplier selection; "the more flexible a supplier is, the more valuable that supplier is to the buyers in an uncertain environment" (Wu, 2009).…”

“…Wu (2009) investigates the effects of uncertainty on supplier selection; "the more flexible a supplier is, the more valuable that supplier is to the buyers in an uncertain environment" (Wu, 2009). The importance of supplier selection is obvious, but unfortunately, it is less seen that an organization employs a structural selection process to find the best supplier (Herbon et al, 2012).…”

Suitability of a Consensual Fuzzy Inference System to Evaluate Suppliers of Strategic Products

“…Part of that confusion stems from some authors not defining the evaluation and selection phases, the two main and subsequent stages, in a concise manner [22]. Some others, put more emphasis on the "frequency" of evaluation [23]. There are some others who conceive the evaluation embedded within the selection, instead of that which is not [24][25][26][27].…”

Supplier Evaluation Process by Pairwise Comparisons

“…The supplier selection process requires predetermination of several issues, including the number of suppliers with which the organization wishes to contract for a given product or service [13]. It is difficult to determine how many suppliers should work for a given organization.…”