Implementing Shannon Entropy, SWOT and Mathematical Programming for Supplier Selection and Order Allocation

Supplier selection is a multiple criteria decision making (MCDM) problem which is affected by several conflicting factors. In the business market of flaming competition in recent years, more attention has been paid to this problem. In this paper, a two-phased model is proposed for supplier selection and order allocation. At the first, suppliers are evaluated according to both qualitative and quantitative criteria resulting from SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis. SWOT is a useful technique in strategic management and is utilized to determine criteria and to deal with suppliers situation in competitive market. Defining the criteria, Shannon entropy is then used to calculate weight of criteria. Then the results are used as an input for integer linear programming (ILP) to allocate order to suppliers

A fuzzy decision tool to evaluate the sustainable performance of suppliers in an agrifood value chain

Sustainable supply chain management has received much attention from both academia and industry due to various issues such as economic stability, environment conservation, and social ethics. To improve the sustainable performance of a value chain, its members need to carefully select their suppliers in relation to their own strategy. Thus, an effective tool for sustainable supplier selection and evaluation is essential, which considers the triple bottom line (TBL) of economic, environmental and social aspects by means of criteria adapted to the situation analysed. This paper develops a fuzzy decision tool to evaluate the sustainable performance of suppliers according to TBL. Sustainability criteria are identified to take into account the real hotspots in a food value chain. The proposed model integrates triangular fuzzy numbers (TFN), AHP (Analytic Hierarchy Process) and TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) in a novel way to consider quantitative and qualitative criteria as well as objective and subjective data. This is missing in most existing research when building their fuzzy models for supplier selection, but critical in dealing with the heterogeneous data available for TBL assessment. The application in a sustainable agrifood value chain illustrates the effectiveness of the proposed tool

The state of the art development of AHP (1979-2017): A literature review with a social network analysis

Although many papers describe the evolution of the analytic hierarchy process (AHP), most adopt a subjective approach. This paper examines the pattern of development of the AHP research field using social network analysis and scientometrics, and identifies its intellectual structure. The objectives are: (i) to trace the pattern of development of AHP research; (ii) to identify the patterns of collaboration among authors; (iii) to identify the most important papers underpinning the development of AHP; and (iv) to discover recent areas of interest. We analyse two types of networks: social networks, that is, co-authorship networks, and cognitive mapping or the network of disciplines affected by AHP. Our analyses are based on 8441 papers published between 1979 and 2017, retrieved from the ISI Web of Science database. To provide a longitudinal perspective on the pattern of evolution of AHP, we analyse these two types of networks during the three periods 1979?1990, 1991?2001 and 2002?2017. We provide some basic statistics on AHP journals and researchers, review the main topics and applications of integrated AHPs and provide direction for future research by highlighting some open questions

Dynamic small-series fashion order allocation and supplier selection: a ga-topsis-based model

The fashion industry is currently confronted with significant economic and environmental challenges, necessitating the exploration of novel business models. Among the promising approaches is small series production on demand, though this poses considerable complexities in the highly competitive sector. Traditional supplier selection and production planning processes, known for their lengthy and intricate nature, must be replaced with more dynamic and effective decision-making procedures. To tackle this problem, GA-TOPSIS hybrid model is proposed as the methodology. The model integrates Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) evaluation into the fitness function of Genetic Algorithm (GA) to comprehensively consider both qualitative and quantitative criteria for supplier selection. Simultaneously, GA efficiently optimizes the order sequence for production planning. The model's efficacy is demonstrated through implementation on real orders, showcasing its ability to handle diverse evaluation criteria and support supplier selection in different scenarios. Moreover, the proposed model is employed to compute the Pareto front, which provides optimal sets of solutions for the given objective criteria. This allows for an effective demand-driven strategy, particularly relevant for fashion retailers to select supplier and order planning optimization decisions in dynamic and multi-criteria context. Overall, GA-TOPSIS hybrid model offers an innovative and efficient decision support system for fashion retailers to adapt to changing demands and achieve effective supplier selection and production planning optimization. The model's incorporation of both qualitative and quantitative criteria in a dynamic environment contributes to its originality and potential for addressing the complexities of the fashion industry's supply chain challenge

The state of the art development of AHP (1979-2017): a literature review with a social network analysis

Although many papers describe the evolution of the analytic hierarchy process (AHP), most adopt a subjective approach. This paper examines the pattern of development of the AHP research field using social network analysis and scientometrics, and identifies its intellectual structure. The objectives are: (i) to trace the pattern of development of AHP research; (ii) to identify the patterns of collaboration among authors; (iii) to identify the most important papers underpinning the development of AHP; and (iv) to discover recent areas of interest. We analyse two types of networks: social networks, that is, co-authorship networks, and cognitive mapping or the network of disciplines affected by AHP. Our analyses are based on 8441 papers published between 1979 and 2017, retrieved from the ISI Web of Science database. To provide a longitudinal perspective on the pattern of evolution of AHP, we analyse these two types of networks during the three periods 1979–1990, 1991–2001 and 2002–2017. We provide some basic statistics on AHP journals and researchers, review the main topics and applications of integrated AHPs and provide direction for future research by highlighting some open questions

A Decision Tool for Supplier Selection That Takes into Account Power and Performance

Companies select their suppliers to provide required performance while being successful partners. An important aspect of collaboration is the power relationship between the company and its suppliers. Although the significance of power in supplier selection is acknowledged, published work rarely includes assessment of power. An empirical study on selecting suppliers for new product developments in a major European diesel engine manufacturing company, supported by three smaller studies with electronic engineering companies, frames overall questions regarding the importance of incorporating power into supplier selection and how this might be achieved. This research proposes an approach that assesses both performance and power and integrates the assessment results by modelling the relative effects of power and performance. It positions the suppliers into six scenarios (ideal, satisfying, tolerable, unfavourable, risky and tough) which depict to what extent a supplier is ‘suitable’ to work with. A reverse analysis reviews the relationship when several suppliers appear suitable. An assessment method is developed incorporating both subjective and objective data for qualitative and quantitative criteria. It combines two decision making methods, AHP and TOPSIS, with triangular fuzzy numbers. Multiple judgements from several decision makers are synthesised. This method is adapted for performance assessment of single, group and cross-group suppliers. Weights are calculated for the criteria, and combined with calculations of supplier performance against each criterion to provide an overall assessment and supplier profile. Power is quantified against a set of power determinants and power relations (supplier dominance, buyer dominance and balanced) are determined. The effects of supplier perceptions (objective, optimistic and pessimistic) are estimated in the calculation. The proposed approach involves complex calculations and a prototype software tool is developed with graphical interfaces. The tool includes performance criteria and power determinants collected from literature and allows users to define new ones. Application to an agriculture case enables the sustainable performance of suppliers (farmers) to be evaluated and compared

Pengambilan Keputusan Pemilihan Pemasok Di Perusahaan Manufaktur Dengan Metode Fuzzy ANP

. The issue of supplier selection is an important issue in the company because it will determine the company's ability to ensure the availability of raw materials in production. This study aims to establish a decision-making model for supplier selection which considers many criteria in which there is dependence between criteria. The method used is fuzzy-analytic network process (fuzzy-ANP). The combined fuzzy and ANP methods is used not only to consider dependencies between criteria, but also to minimize uncertainty and inaccuracy in the assessment of importance of each criterion. Four major stages used in the decision model, namely the establishment of supplier selection criteria and sub-criteria, the process of determining dependencies among the criteria, the weighting of the criteria/sub-criteria, and the last one is supplier assessment process. The process of weighting the criteria results in two data, criteria weights without dependency and criteria weights with dependency. The process of formation of criteria/sub-criteria and the ratings to generate weights were obtained from the experts from the company where case study was done. Supplier rsting process is done through assessment process using the 5 (five) scale rating. The results of rating for each supplier will then be compared. The results of this method is the ranking of suppliers in a certain procurement process. From this research it is known that the method used, fuzzy ANP, is proved to be appropriate considering that there are dependencies among the criteria/ sub-criteria used and the method is useful to minimize uncertainty or inaccuracy in the assessment process. By employing this method, criteria with the highest weight was obtained, that is quality of human resources which affect as much as 6 other criteria, followed by quality of product, supplier's reputation, price, and delivery method

Supplier evaluation and selection in fuzzy environments: a review of MADM approaches

In past years, the multi-attribute decision-making (MADM) approaches have been extensively applied by researchers to the supplier evaluation and selection problem. Many of these studies were performed in an uncertain environment described by fuzzy sets. This study provides a review of applications of MADM approaches for evaluation and selection of suppliers in a fuzzy environment. To this aim, a total of 339 publications were examined, including papers in peer-reviewed journals and reputable conferences and also some book chapters over the period of 2001 to 2016. These publications were extracted from many online databases and classified in some categories and subcategories according to the MADM approaches, and then they were analysed based on the frequency of approaches, number of citations, year of publication, country of origin and publishing journals. The results of this study show that the AHP and TOPSIS methods are the most popular approaches. Moreover, China and Taiwan are the top countries in terms of number of publications and number of citations, respectively. The top three journals with highest number of publications were: Expert Systems with Applications, International Journal of Production Research and The International Journal of Advanced Manufacturing Technology

An Integration of Rank Order Centroid, Modified Analytical Hierarchy Process and 0-1 Integer Programming in Solving A Facility Location Problem

Hadhramout province is the major producer of dates in The Republic of Yemen. Despite producing substantial quantity and quality of dates, the business losses are still high. The situation worsens with the widespread of the black market activities. Recently, the Yemeni government has issued an agreement stating the importance of building a date palm packaging factory as a resolution to the problems. Hence, this study aims to identify the best location for a date palm packaging factory among the seven districts which produce most of the date palm supplies in Hadhramout. The selection was based on eleven criteria identified by several representatives from the farmers and the local councils. These criteria were market growth, proximity to the markets, proximity to the raw materials, labor, labor climate, suppliers, community, transportation cost, environmental factors, production cost, and factory set up cost. The level of importance and the respective weight of each criterion were calculated using two different approaches, namely, Analytic Hierarchy Process (AHP) and Rank Order Centroid (ROC). In applying AHP, a slight modification was made in the pairwise comparison exercises that eliminated the inconsistency problem faced by the standard AHP pairwise comparison procedure. Likewise, in applying ROC, a normalization technique was proposed to tackle the problem of assigning weights to criteria having the same priority level, which was neither clarified nor available in the standard ROC. Both proposed techniques revealed that suppliers were the most important criterion, while community was regarded to be the least important criterion in deciding the final location for the date palm factory. Combining the criteria weights together with several hard and soft constraints that were required to be satisfied by the location, the final location was determined using three different mathematical models, namely, the ROC combined with 0-1 integer programming model, the AHP combined with 0-1 integer programming model, and the mean of ROC and AHP combined with 0-1 integer programming model. The three models produced the same result; Doean was the best location. The result of this study, if implemented, would hopefully help the Yemeni government in their effort to improve the production as well as the management of the date palm tree in Hadhramout

Extended Fuzzy Analytic Hierarchy Process (E-FAHP): A General Approach

[EN] Fuzzy analytic hierarchy process (FAHP) methodologies have witnessed a growing development from the late 1980s until now, and countless FAHP based applications have been published in many fields including economics, finance, environment or engineering. In this context, the FAHP methodologies have been generally restricted to fuzzy numbers with linear type of membership functions (triangular numbers-TN-and trapezoidal numbers-TrN). This paper proposes an extended FAHP model (E-FAHP) where pairwise fuzzy comparison matrices are represented by a special type of fuzzy numbers referred to as (m,n)-trapezoidal numbers (TrN (m,n)) with nonlinear membership functions. It is then demonstrated that there are a significant number of FAHP approaches that can be reduced to the proposed E-FAHP structure. 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