A MCDM-based model for vendor selection:a case study in the particleboard industry

We investigated procurement of raw materials for particleboard to minimize costs and develop an efficient optimization model for product mix. In a multiple-vendor market, vendors must be evaluated based on specified criteria. Assuming sourcing from the highest-scoring vendors, annual purchase quantities are then planned. To meet procure- ment needs, we first propose a model to describe the problem. Then, an appropriate multi-criteria decision making （MCDM） technique is se- lected to solve it. We ran the model using commercial software such as LINGO~ and then compared the model results to a real case involving one of the largest particleboard manufacturers in the region. The model run based real data yielded a procurement program that is more efficient and lower in cost than the program currently in use. Use of this procurement modelling approach would yield considerable financial returns.

Fuzzy Programming Models for Vendor Selection Problem in a Supply Chain

This paper characterizes quality, budget, and demand as fuzzy variables in a fuzzy vendor selection expected value model and a fuzzy vendor selection chance-constrained programming model, to maximize the total quality level. The two models have distinct advantages over existing methods for selecting vendors in fuzzy environments. A genetic algorithm based on fuzzy simulations is designed to solve these two models. Numerical examples show the effectiveness of the algorithm.

Multi-Objective Vendor Selection Problem of Supply Chain Management Under Fuzzy Environment

Survival of a company in today's competitive business environment depends mainly on its supply chain.An adequate supply chain gives a competitive edge to a com-pany.Sourcing,which is the initial stage of a supply chain,can be made efficient by making an appropriate selection of vendors.Appropriate vendor selection results not only in reduced purchasing costs,decreased production lead time,increased customer satisfaction but also in improved corporate competitiveness.In general,the vendor selection problem is a multi-objective decision-making problem that involves some quantitative and qualitative factors.So,we have considered a multi-objective ven-dor selection problem(MOV SP)with three multiple objective goals:minimization of net ordering price,minimization of rejected units and minimization of late delivered units.In most of the cases,information about the price of a unit,percentage of rejected units,percentage of late delivered units,vendor rating value and vendor quota flexibil-ity may not be known precisely due to some reasons.In this paper,imprecision in input information is handled by the concept of a simulation technique,where the parameter follows the uniform distribution.Deterministic,stochastic,a-cut and ranking function approaches are used to get the crisp value of the simulated data sets.The four differ-ent algorithms,namely-fuzzy programming,goal programming,lexicographic goal programming and D1-distance algorithm,have been used for solving the MOVSP.In last,three different types of simulated data sets have been used to illustrate the work.

Short Period Logistics Integrating: a Model for Vendors'Evaluating and Selecting

Vendors’Evaluating and Selecting is one study focu s in SCM and VMO. It is one of the very important operations management and can ad vance to implement the strategic aims. With the increase in use of total quality management and just-in-time concepts by a wide range of firms, the vendor sel ection question has become extremely important. It is necessary for firms to tak e part in the global competition and global manufacture. There are some decision -making techniques which can be used for evaluating and selecting vendors, such as weighting point methods, utility theary, multi-objective programming, analy tic hierarchy process, vendor profile analysis, and so on. Analytic Hierarchy Pr ocess(AHP) is a technique in common use for quantifying the problem. Since AHP i s put forward in 1973 by Satty, it has been accepted. However, this technique ha s its shortcomings, and one of them is that distributing weights is subjective. In recent years,some scholars prove that it is defferent from factual doing usin g subjective ways for vendors’ evaluating and selecting. In fact, the methods f or vendors’evaluating and selecting should be given by practical circs. Today, there’s somebody who has brought forward that it is studied by deviding four ty pes of relationships in view of two major factors: the reference time horizon of the relationship; and the content of the relationship in terms of the nature of the interation between supplier and customer. In the paper, we only consider th e scenario of short-term and logistic intergration brought forward by Cristina and Andrea. In the scenario, we only consider current manufacturing performance. In fact, the scenario is often seen in these developing countries.We bring up a model for grey system analysis on vendors’evaluating and selecting to attempt to expore this problem. The model integrates AHP and the grey system theory and attempt to eliminate the subjective factors in AHP using objective datum. Moreov er, it is based on the feature of data insufficiency and uncertainty and sample information of abnormality in system data.So,it overcomes the issues of deficien t information and absent data(it is often seen in management).

A PURCHASING DECISION: SELECTING A SUPPLIER FOR A CONSTRUCTION COMPANY

Supplier selection is one of the most crucial activities performed by organizations because of its strategic importance. Supplier selection is a multi-objective problem involving both quantitative and qualitative criteria. Over the years a number of quantitative approaches have been tried. Although the Analytic Hierarchy Process （AHP） has previously been used in supplier selection problems, one major weakness of the application-oriented AHP literature is that it tends to focus on the mechanics of AHP instead of on the theoretical and practical implications associated with finding a solution. Though it is one of the most extensively used Multiple Criteria Decision Analysis methodologies, our literature search indicated that most studies found the best solution and stopped there, ignoring sensitivity analysis. Performing sensitivity analysis is very important for practical decision making, sometimes even as important as finding the best solution. In this paper for the first time a comprehensive application of AHP for a real-world case is presented along with sensitivity analysis in choosing the best suppliers for a Turkish construction company. As a result of this study the company decided to allocate the order quantities between the two top suppliers.