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

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 JournalEmerald Publishing

Published: Mar 14, 2008

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

References

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


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

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
$360/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