Supplier evaluation model for computer auditing and decision‐making analysis

Abstract

PurposeThe purpose of this paper is to present a model and a supporting approach for effective supplier selection decisions.Design/methodology/approachStructural equation modeling (SEM) and confirmatory factor analysis are applied to test the evaluation principles and samples. Next, the data tested by SEM is used for artificial neural network (ANN) by Likert and fuzzy scales to structure a classification model, accompanying with canonical discriminate analysis (CANDISC) to diminish variables. After the training and test of the model, multiple discriminate analysis is applied to compare the accuracy of the classification. Last, the CANDISC variable reduction method with ANN classification model utilized in the study is applied.FindingsThe supplier selection model designed with ANN classification model and fuzzy scales will be more effective than with the traditional statistics analysis.Research limitations/implicationsThe new paradigm for decision making includes a combination of several effective methods and analysis.Practical implicationsThis research provides an integrated model for internal auditors and managers to classify their supplier selection decisions.Originality/valueThis paper contributes to the new approach of the decision model building process for computer auditing and improves the classification accuracy effectively.

Intellectual capital information gaps

“…It also reinforces the relative novelty of the research, being an indicator of information need that is still to be met by emerging provision of data. Control of information, not physical assets, is the key to success (Shih, et al, 2009). Success requires disseminating information that is to the firm"s advantage and protecting information that is the core of the firm"s business (Sullivan, 1998).…”

A new hybrid supplier selection model

“…Research demonstrate that the fuzzy concepts are widely used in a supplier selection process (Montazer et al, 2009;Díaz-Madroñero et al, 2010;Dalalah et al, 2011;Yu et al, 2012;Dymova et al, 2013;Ghorbani et al, 2014;Liou et al, 2014;Mukherjee, 2016). Fuzzy linguistic terms are used to deal with linguistic group decision-making problems (Hatami-Marbini et al, 2013) that are not precisely known and they are reported in different supplier selection models (Yang et al, 2008;Shih et al, 2009;Amindoust et al, 2012;Ho et al, 2012;Zouggari and Benyoucef, 2012). However, applying the LOWA operator to deal with linguistic terms is still missing in SSTs.…”

Determination of construction supplier evaluation criteria using word tags

“…The authors proposed six main categories of criteria for selecting a supplier, including purchase costs, product quality, reliability, technical support, collaboration and financial performance. Shih et al (2009) submitted nine criteria for the supplier evaluation and selection based on four research papers. These criteria include price, product quality, distribution, technical support, cooperation and association, brand reputation, geographic location, financial position and available relationship.…”