The Use of AR-IDEA Approach for Supplier Selection Problems

Abstract: To select the best suppliers in the presence of both cardinal and ordinal data and considering weight restrictions, this paper proposes a method, which is based on Assurance RegionImprecise Data Envelopment Analysis (AR-IDEA). A numerical example demonstrates the application of the proposed method

Using Transaction Utility Approach for Retail Format Decision

Transaction Utility theory was propounded by Thaler to explain that the value derived by a customer from an exchange consists of two drivers: Acquisition Utilities and Transaction utilities. Acquisition utility represents the economic gain or loss from the transaction. Where as transaction utility is associated with purchase or (sale) and represents the pleasure (or displeasure) of the financial deal per se and is a function of the difference between the selling price and the reference price. Choice of a format has been studied from several dimensions including the cost and effort as well as the non-monetary values. However, the studies that present the complete picture and combine the aspects of the tangible as well as intangible values derived out of the shopping process are limited. Most of the studies, all of them from the developed economies, have focussed on the selection of a store. They represent a scenario where formats have stabilised. However, in Indian scenario formats have been found to be influencing the choice of store as well as orientation of the shoppers. Also, retailers are experimenting with alternate format with differing success rates. The author has also not found a study that has applied this theory. It is felt that the Transactional Utility Theory may provide a suitable approach for making format decisions.

Strategic sourcing:a combined QFD and AHP approach in manufacturing

Purpose – This paper aims to develop an integrated analytical approach, combining quality function deployment (QFD) and analytic hierarchy process (AHP) approach, to enhance the effectiveness of sourcing decisions. Design/methodology/approach – In the approach, QFD is used to translate the company stakeholder requirements into multiple evaluating factors for supplier selection, which are used to benchmark the suppliers. AHP is used to determine the importance of evaluating factors and preference of each supplier with respect to each selection criterion. Findings – The effectiveness of the proposed approach is demonstrated by applying it to a UK-based automobile manufacturing company. With QFD, the evaluating factors are related to the strategic intent of the company through the involvement of concerned stakeholders. This ensures successful strategic sourcing. The application of AHP ensures consistent supplier performance measurement using benchmarking approach. Research limitations/implications – The proposed integrated approach can be principally adopted in other decision-making scenarios for effective management of the supply chain. Practical implications – The proposed integrated approach can be used as a group-based decision support system for supplier selection, in which all relevant stakeholders are involved to identify various quantitative and qualitative evaluating criteria, and their importance. Originality/value – Various approaches that can deal with multiple and conflicting criteria have been adopted for the supplier selection. However, they fail to consider the impact of business objectives and the requirements of company stakeholders in the identification of evaluating criteria for strategic supplier selection. The proposed integrated approach outranks the conventional approaches to supplier selection and supplier performance measurement because the sourcing strategy and supplier selection are derived from the corporate/business strategy

Supplier Selection and Evaluation Using Restricting Weights Method in Presence of Dual Factor under Fuzzy Environment.

As businesses grow more complex, so do their supply chains. Data envelopment analysis (DEA) is a useful method for supplier selection. Weight restrictions allow for the integration of managerial preferences in terms of relative importance levels of various inputs and outputs. In some situations there are some factors which play both input and output roles as well. The purpose of this research is to propose a method for selecting the best suppliers in the presence of weight restrictions and dual-role factors. This study shows the supplier selection process through a DEA model, while allowing for the incorporation of decision make

Supplier Selection and Evaluation Using Restricting Weights Method in Presence of Dual Factor under Fuzzy Environment.

As businesses grow more complex, so do their supply chains. Data envelopment analysis (DEA) is a useful method for supplier selection. Weight restrictions allow for the integration of managerial preferences in terms of relative importance levels of various inputs and outputs. In some situations there are some factors which play both input and output roles as well. The purpose of this research is to propose a method for selecting the best suppliers in the presence of weight restrictions and dual-role factors. This study shows the supplier selection process through a DEA model, while allowing for the incorporation of decision make

An Integrated Group Decision-making Process For Supplier Selection and Order Allocation Using Multi-attribute Utility Theory Under Fuzzy Environment.

Supply chain management has become a key aspect that has implications for effective and efficient management of industrial relations. It has also become an important focus for firms and organizations to obtain a competitive advantage. Supplier selection is a highly important multi-criteria group decision making problem, which requires a trade-off between multiple criteria exhibiting vagueness and imprecision with the involvement of a group of experts. In this problem if suppliers have capacity or other different constraints, two problems will exist: which suppliers are best and how much should be purchased from each selected supplier. In this paper an integrated approach of multi-attribute utility theory (MAUT) is applied to represent the decision make

Supplier selection criteria and methods: past, present and future

Sole purpose of supplier selection is not limited to get supply at low cost and at right time. Supplier selection is a strategic decision to fulfil company’s goal for long period of time at low risk. To accomplish this objective companies are moving from reactive buying to proactive buying to give more priority to co-creation of wealth with supplier/s. Considering this issue an attempt has been made in this paper to give systematic review of supplier selection and evaluation process from 2005 to 2012 to answer three main questions: (i) Which method is more appropriate for supplier selection? (ii) Which evaluating criteria were most cited? (iii) Is present trend of research is adequate enough to support proactive buying? In this regard, 78 papers are classified into 10 categories to identify factors affecting supplier selection and evaluation process. Statistical analysis has been conducted with software “R” to have better insight on the trend of research. Recommendations and future work is also included to verify inadequacy of existing methods, if any, to support proactive buying process

Supplier selection criteria and methods: past, present and future

Sole purpose of supplier selection is not limited to get supply at low cost and at right time. Supplier selection is a strategic decision to fulfil company’s goal for long period of time at low risk. To accomplish this objective companies are moving from reactive buying to proactive buying to give more priority to co-creation of wealth with supplier/s. Considering this issue an attempt has been made in this paper to give systematic review of supplier selection and evaluation process from 2005 to 2012 to answer three main questions: (i) Which method is more appropriate for supplier selection? (ii) Which evaluating criteria were most cited? (iii) Is present trend of research is adequate enough to support proactive buying? In this regard, 78 papers are classified into 10 categories to identify factors affecting supplier selection and evaluation process. Statistical analysis has been conducted with software “R” to have better insight on the trend of research. Recommendations and future work is also included to verify inadequacy of existing methods, if any, to support proactive buying process