Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You and Your Team.

Learn More →

An integrated approach for supplier selection and purchasing decisions

An integrated approach for supplier selection and purchasing decisions Purpose – The paper seeks to provide academic researchers and practitioners with a better understanding about purchasing strategies through an integrated approach to supplier selection and purchasing decisions. Design/methodology/approach – This paper views supplier selection as a multi‐criteria problem. Through the analytical hierarchy process (AHP), in consideration of both quantitative and qualitative criteria, a set of candidate suppliers is identified. A multi‐objective linear programming (MOLP) model, with multiple objectives and a set of system constraints, is then formulated and solved to allocate the optimum order quantities to the candidate suppliers. Findings – The paper provides tradeoffs among different objectives, which are more consistent with the complexity and nature of the real‐world decision‐making environment. It also offers better information and solutions supporting effective purchasing decisions. Research limitations/implications – The main concept of the proposed approach can be applicable to any organization with a purchasing function. However, its implementation will be very specific to a particular organization of interest, as each individual organization must define its own subjective criteria and constraints. The area of decision support system development, which automates (or computerizes) the input process of the proposed models and integrates with other databases in a company, will provide great opportunities for future research. Practical implications – The paper provides practitioners with flexibility and effectiveness in their supplier selection and purchasing decision process and with a better understanding about their future purchasing strategies. The results from the application of the proposed models to the supplier selection problem at a high‐technology firm in Taiwan show that the models are effective and applicable. Originality/value – This paper takes an integrated approach to problem analysis (i.e. multi‐objectives with both quantitative and qualitative information), uses a sound scientific methodology in model development (i.e. integrating AHP with MOLP), and provides practical use of the models. It offers additional knowledge and value to both academics and practitioners. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Supply Chain Management: An International Journal Emerald Publishing

An integrated approach for supplier selection and purchasing decisions

Download PDF
12 pages
Read Article

Loading next page...
 
/lp/emerald-publishing/an-integrated-approach-for-supplier-selection-and-purchasing-decisions-s8GSTflR2b
Publisher
Emerald Publishing
Copyright
Copyright © 2008 Emerald Group Publishing Limited. All rights reserved.
ISSN
1359-8546
DOI
10.1108/13598540810860958
Publisher site
See Article on Publisher Site

Abstract

Purpose – The paper seeks to provide academic researchers and practitioners with a better understanding about purchasing strategies through an integrated approach to supplier selection and purchasing decisions. Design/methodology/approach – This paper views supplier selection as a multi‐criteria problem. Through the analytical hierarchy process (AHP), in consideration of both quantitative and qualitative criteria, a set of candidate suppliers is identified. A multi‐objective linear programming (MOLP) model, with multiple objectives and a set of system constraints, is then formulated and solved to allocate the optimum order quantities to the candidate suppliers. Findings – The paper provides tradeoffs among different objectives, which are more consistent with the complexity and nature of the real‐world decision‐making environment. It also offers better information and solutions supporting effective purchasing decisions. Research limitations/implications – The main concept of the proposed approach can be applicable to any organization with a purchasing function. However, its implementation will be very specific to a particular organization of interest, as each individual organization must define its own subjective criteria and constraints. The area of decision support system development, which automates (or computerizes) the input process of the proposed models and integrates with other databases in a company, will provide great opportunities for future research. Practical implications – The paper provides practitioners with flexibility and effectiveness in their supplier selection and purchasing decision process and with a better understanding about their future purchasing strategies. The results from the application of the proposed models to the supplier selection problem at a high‐technology firm in Taiwan show that the models are effective and applicable. Originality/value – This paper takes an integrated approach to problem analysis (i.e. multi‐objectives with both quantitative and qualitative information), uses a sound scientific methodology in model development (i.e. integrating AHP with MOLP), and provides practical use of the models. It offers additional knowledge and value to both academics and practitioners.

Journal

Supply Chain Management: An International Journal – Emerald Publishing

Published: Mar 14, 2008

Keywords: Supplier evaluation; Order systems; Analytical hierarchy process; Linear programming

References

  • Fuzzy logic in vendor rating: a comparison between a fuzzy logic system and a neural network
    Albino, V.; Garavelli, C.; Gorgoglione, M.
  • Fuzzy multiobjective linear model for supplier selection in a supply chain
    Amid, A.; Ghodsypour, S.H.; O'Brien, C.
  • Supplier evaluation and management system for strategic sourcing based on a new multicriteria sorting procedure
    Araz, C.; Ozkarahan, I.
  • A fuzzy‐QFD approach to supplier selection
    Bevilacqua, M.; Ciarapica, F.E.; Giacchetta, M.
  • Investigating the decision criteria used in electronic components procurement
    Bharadwaj, N.
  • Supplier selection problem: a comparison of the total cost of ownership and analytic hierarchy process approaches
    Bhutta, K.S.; Huq, F.
  • Case study: vendor assessment for partners in supply
    Briggs, P.
  • An integrated approach for supplier selection
    Cebi, F.; Bayraktar, D.
  • Global supplier development considering risk factors using fuzzy extended AHP‐based approach
    Chan, F.T.S.; Kumar, N.
  • A fuzzy approach for supplier evaluation and selection in supply chain management
    Chen, C.T.; Lin, C.T.; Huang, S.F.
  • A two‐phased semantic optimization modeling approach on supplier selection in eprocurement
    Choi, J.H.; Chang, Y.S.
  • An exploration of supplier selection practices across the supply chain
    Choi, T.Y.; Hartley, J.L.
  • An intelligent supplier management tool for benchmarking suppliers in outsource manufacturing
    Choy, K.L.; Lee, W.B.; Lo, V.
  • Design of a case based intelligent supplier relationship management system – the intelligent supplier rating system and product coding system
    Choy, K.L.; Lee, W.B.; Lo, V.
  • Practice and promise of formal supplier selection: a study of four empirical cases
    De Boer, L.; van der Wegen, L.
  • A review of methods supporting supplier selection
    De Boer, L.; Labro, E.; Morlacchi, P.
  • Outranking methods in support of supplier selection
    De Boer, L.; van der Wegen, L.; Telgen, J.
  • Supplier selection criteria on the service dimension
    Donaldson, B.
  • Supplier selection using a multi‐criteria decision aid method
    Dulmin, R.; Mininno, V.
  • A structured method for applying purchasing cost management tools
    Ellram, L.M.
  • Strategic supplier selection in the added‐value perspective: a CI approach
    Florez‐Lopez, R.
  • A multi‐objective model for purchasing of bulk raw materials of a large‐scale integrated steel plant
    Gao, Z.; Tang, L.
  • A decision support system for supplier selection using an integrated analytical hierarchy process and linear programming
    Ghodsypour, S.H.; O'Brien, C.
  • The total cost of logistics in supplier selection, under conditions of multiple sourcing, multiple criteria and capacity constraint
    Ghodsypour, S.H.; O'Brien, C.
  • Integration of web services technology with business models within the total product design process for supplier selection
    Hou, J.; Su, D.
  • An effective supplier selection method for constructing a competitive supply‐relationship
    Hong, G.H.; Park, S.C.; Jang, D.S.; Rho, H.M.
  • Comprehensive and configurable metrics for supplier selection
    Huang, S.H.; Keskar, H.
  • Integrating environmental criteria into the supplier selection process
    Humphreys, P.K.; Wong, Y.K.; Chan, F.T.S.
  • Changing supplier selection and relationship practices: a contagion process
    Kamann, D.‐J.F.; Bakker, E.F.
  • Purchasing materials in the supply chain: managing a multi‐objective task
    Karpak, B.; Kumcu, E.; Kasuganti, R.R.
  • A multi‐objective supplier selection model under stochastic demand conditions
    Liao, Z.; Rittscher, J.
  • The voting analytic hierarchy process method for selecting suppliers
    Liu, F.H.; Hai, H.L.
  • International supplier selection: a multi‐attribute utility approach
    Min, H.
  • A generative approach for concurrent manufacturability evaluation and subcontractor selection
    Minis, I.; Herrmann, J.W.; Lam, G.; Lin, E.
  • An analytical approach to supplier selection
    Narasimhan, R.
  • Allocation of order quantity among suppliers
    Pan, A.C.
  • Vendor selection using principal component analysis
    Petroni, A.; Braglia, M.
  • Quantitative Analysis Management
    Render, B.; Stair, R.M.
  • Vendor selection and evaluation: an activity based costing approach
    Roodhooft, F.; Konings, J.
  • Vendor selection with bundling
    Rosenthal, E.C.; Zydiak, J.L.; Chaudhry, S.S.
  • The Analytic Hierarchy Process
    Saaty, T.L.
  • The Logic of Priorities: Application in Business, Energy, Health and Transportation
    Saaty, T.L.; Vargas, L.G.
  • Models, Methods, Concepts and Applications of the Analytic Hierarchy Process
    Saaty, T.L.; Vargas, L.G.
  • A new mathematical approach for supplier selection: accounting for non‐homogeneity is important
    Saen, R.F.
  • Designing and Managing the Supply Chain: Concepts, Strategies, and Case Studies
    Simchi‐Levi, D.; Kaminsky, P.; Simchi‐Levi, E.
  • Preferences for single sourcing and supplier selection criteria
    Swift, C.O.
  • Economic models for vendor evaluation with quality cost analysis
    Tagaras, G.; Lee, A.L.
  • An analysis of the supplier selection process
    Verma, R.; Pullman, M.
  • A multi‐objective approach to vendor selection
    Weber, C.A.; Current, J.R.
  • Vendor selection criteria and methods
    Weber, C.A.; Current, J.R.; Benton, W.C.
  • Using neural network analysis to evaluate buyer‐seller relationship
    Wray, B.; Palmer, A.; Bejou, D.
  • Supplier selection with multiple criteria in volume discount environments
    Xia, W.; Wu, Z.
  • Vendor rating for an entrepreneur development programme: a case study using the analytic hierarchy process method
    Yahya, S.; Kingsman, B.

You’re reading a free preview. Subscribe to read the entire article.

Try 2 weeks free now

DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

or browse the journals available

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$499/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

Sign up
for free
Start 14 day
Free Trial