Use of analytic network process in vendor selection decisions

Purpose To provide a good insight into the use of analytic network process (ANP) that is a multiple criteria decision‐making methodology in evaluating supplier selection problems. Design/methodology/approach Supplier selection problems are multi‐objective problems which have many qualitative and quantitative concerns. In this study, an ANP model is proposed in evaluating supplier selection process as a framework to help managers. Findings It is shown that ANP can be used as a decision analysis tool to solve multi‐criteria supplier selection problems that contain interdependencies. Research limitations/implications ANP is a complex methodology and requires more comparisons than the traditional AHP and it increases the effort. Originality/value Provides an effective framework to guide managers for evaluating suppliers

Total Quality Management (TQM) Practices in Turkish Manufacturing Organizations

Total quality management (TQM) is one of the most popular modern management concepts. It refers to a quality emphasis that encompasses the entire organization, from supplier to customer. In this paper, the TQM practices in the Turkish manufacturing industry are analyzed, based on a survey conducted among 100 large companies. This paper presents results of a survey of Turkish manufacturing companies. The key finding from the research is that a growing number of companies in Turkey are willing to implement TQM to generate competitive advantage. It was also found that important factors for a successful implementation process are upper management support, employee involvement and commitment, customer focus, quality education and training, teamwork, and use of statistical techniques

An Examination of Current Collaborative Supply Chain Practices

This paper presents the findings from a survey conducted among 667 members of the National Association of Purchasing Managers-Western Washington (NAPM-WW), the local chapter of the Institute of Supply Management (ISM), to provide insights into current collaborative supply chain practices. In this study, Critical Success Factors (CSFs) for effective collaborative planning are discovered, the impact of collaborative planning on supply chain performance is assessed and the importance of the use of Information Technologies (!Ts) is examined. Our search enabled us to uncover 27 CSFs for effective collaborative planning. In addition to success factors, many factors acting as barriers against effective collaborative planning are explored. The findings also confirmed that collaborative planning significantly impacts supply chain performance positively. It is hoped that the research findings will be helpful and encourage companies lo develop better relationships with their strategic partners

Assessing Advanced Manufacturing Technologies: A Ne\v Approach Using the Analytic Network Process

This paper illustrates an application of the Analytic Network Process (ANP) to the decision by a tractor manufacturing company to implement flexible manufacturing systems (FMS). The ANP is a methodology recently introduced by Thomas L Saaty for multiple criteria problems where there is feedback and interdependence among decision attributes and alternatives. We determined the factors that affect the level of implementation of FMS by doing literature searches and further refined those factors through decision-making team\u27s opinion. We ended up with 28 factors. The results of our decision model show that the company should not implement FMS with an overall priority of 0.503. We believe that the ANP is an effective framework for assessing advanced manufacturing technologies

A New Methodology In Multi-criteria Decision Making: Analytic Network Process and An Application

The objecrive of this paper is to demonstrate how the Analytic Network Process (ANP) may serve as a decision analysis tool in multicriteria decision-making problems. The Analytic Network Process is a new theory rhat extends the Analytic Hierarchy Process (,4HP) to cases of dependence and feedbacks. The ANP is much broader and deeper than the AHP and can be applied to ve1y sophisticated decision problems. Although the AHP has extensively been implemented, ANP has not been implemented much yet. In this paper an application of ANP to a supplier selection problem is presented. An illustrative example provides a good insight into the application of this methodology

Use of AHP in Decision-making for Flexible Manufacturing Systems

Purpose - To provide a good insight into the use of analytic hierarchy process (AHP) that is a multiple criteria decision-making methodology in evaluating flexible manufacturing systems (FMSs). Design/methodology/approach - In this study AHP is used to the decision by a tractor manufacturing plant to implement FMS. Also sensitivity analysis is conducted to see how realistic the final outcome is. Findings - Information on the use of AHP in assessing advanced manufacturing technologies is provided and an AHP model is proposed to guide the management of tractor manufacturing plant. Most important factors, and their relative importance and influences on the objective of the decision-making model are found. By performing a sensitivity analysis, it is also found that the final outcome remained stable in all cases when the weights of the main criteria affecting the decision are varied up and down by 5 percent in all possible combinations. Research limitations/implications - When there are dependencies and interactions among the criteria in a decision-making model, analytic network process is more appropriate methodology; yet AHP assumes linear independence of criteria and alternatives. Originality/value - Proposes a decision-making model to guide managers for assessing advanced manufacturing technologies such as FMS. Also sensitivity analysis conducted in this study is very important for practical decision-making

Selection of a Third Party Logistics Service Provider for an Aerospace Company: An Analytical Decision Aiding Approach

As shippers worldwide are increasing their use of third party logistics (3PL) services, the need for carefully selecting 3PL service providers is becoming much more critical. Choosing the right 3PL service provider is often a dilemma faced by supply chain managers. Our purpose is to show how the analytic hierarchy process (AHP) can be used in aiding companies with the decision of selecting the most capable 3PL service provider for an aerospace company. The methodology we propose enables practitioners to systematically evaluate the trade-offs among multiple factors and therefore helps them in making more informed decisions when evaluating outsourcing logistics services

An AHP Application in Vendor Selection

Supplier selection is one of the most crucial activities performed by the organizations because of its strategic importance. A supplier selection problem is a multi-objective problem involving both quantitative and qualitative criteria. Over the years a number of quantitative approaches have been applied to supplier selection problems. Although the Analytic Hierarchy Process (AHP) has previously been implemented in supplier selection problems, in this paper for the first time a comprehensive application of AHP for a real-world case is presented along with sensitivity analysis to choose the best supplier. We proposed an AHP model to choose the best supplier and place the order quantities among them for a construction company

A Multi-criteria Approach to CPA Firm Selection: A Case Study

The choice of a professional certified public accountant (CPA) firm is vital to organisational success. The appropriate selection of a CPA firm, and thus the ability to obtain relevant and useful professional advice, can either make or break a business. Evaluation and selection of a CPA firm represents a multi-criteria decision-making problem that entails both qualitative and quantitative criteria. This study proposes the use of the analytic hierarchy process (AHP) as a tool for assisting companies to evaluate various CPA firms. Data for our research project were collected from a non-profit organisation based in a large Western Washington city. Sensitivity analysis was also conducted to test the robustness of the decision. We are hoping that our findings will be valuable to companies in their CPA firm selection decisions

An analytical network process-based framework for successful total quality management (TQM): An assessment of Turkish manufacturing industry readiness

In this study, we have developed an analytic network process (ANP)-based framework to identify the level of impact of different factors on total quality management (TQM) implementation and to assess the readiness of the Turkish manufacturing industry to adopt TQM practices. ANP is a methodology recently introduced by Saaty for multiple criteria problems where there is feedback and interdependence among decision attributes and alternatives. We determined the factors that affect the level of implementation of TQM by doing literature searches and further refined those factors through a survey conducted among 250 large manufacturing companies in Turkey. We ended up with 32 factors. When we applied the model into large manufacturing companies zero defect and costly and long-term study turned out to be the most influential factors contrary to those of survey respondents’ quality improvement and higher revenue. The results of our decision model show that the Turkish manufacturing industry has a readiness level of 59.2% for implementing TQM. Model identifies a number of factors for successful application; therefore, an understanding of the critical factors would help managers to advance TQM implementation. Since there is feedback and interdependence among these factors, ANP proves to be an effective framework for assessing readiness to adopt TQM and facilitating TQM implementation