Use of the TOPSIS technique to choose the best supplier of quarry natural aggregate

Purpose. All over the world, natural substance – the most consumed after water – is the aggregate. The aim of this paper is to select the best supplier of Quarry Natural Aggregate (QNA). Methods. Selection of the best supplier of QNA is performed using the TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) approach, and the method of weights based on ordinal ranking of criteria, and Lagrange multiplier. Findings. In this article, the proposed Multi-Criteria Decision Making (MCDM) approach helps the decision maker(s) to choose the best supplier of QNA amongst the considered and evaluated suppliers. Originality. During negotiation with suppliers, many are the decision makers which only attach an importance at two criteria (unit price and quality, or unit price and delivery time). Thereby, other criteria are not taken into account. Consequently, supplier selection would become not-efficient. The originality of this work is based on the multi-criteria approach to choose the best supplier of QNA. Practical implications. The efficient choice of the best supplier of QNA represents a practical and economical value for the enterprises of the civil engineering, public works, railway and hydraulic works.Мета. Обґрунтування та вибір оптимального постачальника кар’єрного щебню як природного заповнювача на основі використання багатокритеріального методу. Методика. Вибір найкращого постачальника кар’єрного природного заповнювача здійснювався за допомогою багатокритеріального методу аналізу варіантів за ступенем близькості до оптимального (TOPSIS) і методу вагових коефіцієнтів на основі порядкового ранжирування критеріїв та множника Лагранжа. Результати. Підхід, що описується в статті, заснований на багатокритеріальному прийнятті рішень і дозволяє обрати кращого постачальника природного заповнювача серед наявних та розглянутих на ринку компаній. В якості ілюстрації запропонована методологія застосована до чисельного прикладу. Це дозволило визначити вагу впливових на оцінку критеріїв, оцінку значень характеристик кожного розглянутого постачальника QNA, встановлення рейтингу розглянутих постачальників QNA і вибір альтернативи {a4} в якості кращого постачальника QNA. Наукова новизна. Вперше для вибору оптимального постачальника природного заповнювача крім факторів ціни і якості встановлено характер впливу на загальну оцінку також ряду інших факторів: вартість транспортування, транспортна відстань, час доставки, гарантійна політика й рівень відхилення. У даній роботі вперше пропонується багатокритеріальний підхід до вибору оптимального постачальника природного заповнювача кар’єра. Практична значимість. Ефективний вибір постачальника природного заповнювача кар’єра важливий з практичної та економічної точок зору для підприємств у галузі цивільного будівництва, громадських робіт, залізниці та гідротехнічних споруд.Цель. Обоснование и выбор оптимального поставщика карьерного щебня как природного заполнителя на основе использования многокритериального метода. Методика. Выбор лучшего поставщика карьерного природного заполнителя осуществлялся с помощью многокритериального метода анализа вариантов по степени близости к оптимальному (TOPSIS) и метода весовых коэффициентов на основе порядкового ранжирования критериев и множителя Лагранжа. Результаты. Подход, описываемый в статье, основан на многокритериальном принятии решений и позволяет выбрать лучшего поставщика природного заполнителя среди имеющихся и рассматриваемых на рынке компаний. В качестве иллюстрации предложенная методология применена к числовому примеру. Это позволило определить вес влияющих на оценку критериев, оценку значений характеристик каждого рассматриваемого поставщика QNA, установление рейтинга рассматриваемых поставщиков QNA и выбор альтернативы {a4} в качестве лучшего поставщика QNA. Научная новизна. Впервые для выбора оптимального поставщика природного заполнителя кроме факторов цены и качества установлен характер влияния на общую оценку также ряда других факторов: стоимость транспортирования, транспортное расстояние, время доставки, гарантийная политика и уровень отклонения. В данной работе впервые предлагается многокритериальный подход к выбору оптимального поставщика природного заполнителя карьера. Практическая значимость. Эффективный выбор поставщика природного заполнителя карьера важен с практической и экономической точек зрения для предприятий в области гражданского строительства, общественных работ, железной дороги и гидротехнических сооружений.The authors thank all the colleagues which have contributed to the realization of this research work

A supplier selection strategy within the Malaysian telecommunications industry

The telecommunication industry in Malaysia has grown rapidly over the last 15 years, with effective supply chain management becoming increasing important within the sector. A multitude of providers and part owned Malaysian government companies, vendors and suppliers are involved in generating and creating value-adding products and services within this sector (across wireless, wireline, broadband business and consumer lines of business). This paper describes key challenges facing a major telecoms service provider in Malaysia with regards to drivers involved in the overall procurement and supplier selection with regards to components of performance management, decision-making, selection techniques, quality and cost management, procurement policy and procurement ethics. This paper further focuses on defining and detailing research currently being undertaken to develop a framework for identifying supplier selection drivers that are inherent within the sector and suggests a research approach to investigate and develop strategies for supplier selection for the telecommunications industry in Malaysia

L.A.R.G. supplier selection based on integrating house of quality, Taguchi loss function and M.O.P.A.

Nowadays, companies are able to obtain the key to success in global competition by choosing the right suppliers who are more align with their strategies. It is clear that applying appropriate attitudes and criteria have a great importance in choosing suppliers in the process of decision-making by chain managers and especially purchasing managers. In this study tried to apply Lean, Agile, Resilient and Green (L.A.R.G.) approach in a model designed to select the consistence supplier. Accordingly, at first, while reviewing and exploiting the literature, the most main logistics needs of the company concerned in the light of the objectives that followed on the fields of the LARG attitudes, are refined and selected, then their degree of significance is determined through Multi-Objective Performance Analysis (M.O.P.A.). The house of quality (H.O.Q.) matrix is applied to determine the importance degree of the technical characteristics of the suppliers and Taguchi loss function is applied to determine the degree of their performance deviation from the target value in each one of the technical characteristics (ultimate judgment about their competency). The considered suppliers are ranked based on the results of the loss function analysis. A sensitivity analysis was conducted to analyse the impact of different conditions on suppliers’ranking and validation of the ranking results were Satisfied by applying the T.O.P.S.I.S. method

Optimization of the supplier selection process in prefabrication using BIM

Prefabrication offers substantial benefits including reduction in construction waste, material waste, energy use, labor demands, and delivery time, and an improvement in project constructability and cost certainty. As the material cost accounts for nearly 70% of the total cost of the prefabrication project, to select a suitable material supplier plays an important role in such a project. The purpose of this study is to present a method for supporting supplier selection of a prefabrication project. The proposed method consists of three parts. First, a list of assessment criteria was established to evaluate the suitability of supplier alternatives. Second, Building Information Modelling (BIM) was adopted to provide sufficient information about the project requirements and suppliers’ profiles, which facilitates the storage and sharing of information. Finally, the Analytic Hierarchy Process (AHP) was used to rank the importance of the assessment criteria and obtain the score of supplier alternatives. The suppliers were ranked based on the total scores. To illustrate how to use the proposed method, it was applied to a real prefabrication project. The proposed method facilitates the supplier selection process by providing sufficient information in an effective way and by improving the understanding of the project requirements

Supplier Portfolio Selection and Optimum Volume Allocation: A Knowledge Based Method

Selection of suppliers and allocation of optimum volumes to suppliers is a strategic business decision. This paper presents a decision support method for supplier selection and the optimal allocation of volumes in a supplier portfolio. The requirements for the method were gathered during a case study that was conducted within the logistics unit of Shell Chemicals Europe. The proposed method is based on the classical view by Sprague and Carlson of sequence and interaction of the different phases of decision making in a decision support system and supports Kraljic’s portfolio approach for supplier management. This method aims to help the managers in making decisions on the allocation of volumes to suppliers while simultaneously trying to satisfy conflicting objectives of improvement in benefit and reduction in risk. A mathematical model to struc-ture the problem is presented, knowledge elicited from the managers is used to parameterize the mathemati-cal model and a multi-objective, hierarchical optimization procedure produces ‘trade-off’ outputs. The man-agers can also conduct interactive post optimization ‘what-if’ analysi

Improving the efficiency of the purchasing process using total cost of ownership information : The case of heating electrodes at Cockerill Sambre S.A.

Improving the efficiency of the purchasing process provides important opportunities to increase a firm's profitability. In this paper we introduce a mathematical programming model that uses total cost of ownership information to simultaneously select suppliers and determine order quantities over a multi-period time horizon. The total cost of ownership quantifies all costs associated with the purchasing process and is based on the activities and cost drivers determined by an activity based costing system. Our approach is motivated by the purchasing problem of heating electrodes at Cockerill Sambre S.A. a Belgian multinational steel producer. In this case quality issues account for more than 70 % of the total cost of ownership making the quality of a supplier a critical success factor in the vendor selection process.Efficiency; Heating; Processes; Purchasing;

Improving sustainability performance through supplier relationship management in the tobacco industry

Purpose: The purpose of this study is to explore how tobacco manufacturing companies can improve their sustainability performance via effective supplier relationship management (SRM). Design/methodology/approach: This study has adopted a single case study of an international tobacco company. The primary data involved semi-structured interviews with participants from the case company who are familiar with sustainable SRM in the tobacco industry and are engaging in various techniques to improve sustainability performance. Findings: The drivers for sustainable SRM commonly identified in literature are observable within the case company. There is also clear evidence of integrating sustainability in its SRM processes. However, the perception of sustainability as a requirement to meet stringent regulations limits its scope and drive in pursuing sustainable SRM. It has also limited supplier sustainability evaluation and performance metrics. Furthermore, the findings of this paper reinforce the importance of a procurement team’s ability to work with other functional teams in implementing sustainable SRM. The findings also contribute to the emerging literature on the impact of sustainability on supplier segmentation and multi-tier supplier management. Research limitations/implications: This study provides insight into the varying SRM methods used in the tobacco industry to ensure compliance and improve sustainability performance. However, further research is required to explore the generalisability of the findings of this study derived from a single case study. Originality/value: The tobacco industry is an under-researched industry, particularly in terms of sustainable operations and supply chain management practices. The findings of this study seem to be relevant to those comparable industries with stringent regulations as well