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A New Dynamic Supplier Selection and Supplier Evaluation Model in a Company for Decision-Making Process

Year 2022, Volume: 2 Issue: 2, 52 - 60, 27.02.2023

Pınar Azimli Yalçın Çebi

Abstract

Supplier selection and evaluation processes are the companies’ most critical decision-making processes. To achieve the desired customer satisfaction, selecting the most suitable supplier and evaluating the suppliers with objective criteria and scientific methods is essential. Supplier Selection (SS) is a strategic decision that a company implements when searching for a new supplier. In contrast, Supplier Evaluation (SE) refers to selecting suppliers among their existing suppliers. As criteria and weights are different in the supplier decision of the companies, a flexible and extensible model called the Dynamic Supplier Analysis Model (DSAM) is developed. This model enables the creation of criteria groups under SS and SE templates, assigning weights to criteria, and applying Multi-Criteria Decision-Making (MCDM) methods. A software program, Dynamic Application for Supplier Analysis Model (DAppSAM), is developed to implement the DSAM model in one of the world’s leading chemical companies using an Enterprise Resource Planning System (ERP) as a case study. Decision-Making Trial and Evaluation Laboratory (DEMATEL) method is applied to calculate criterion weight using dependencies and relationships between criteria. The Analytical Hierarchy Process (AHP) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) MCDM methods were applied using a quality advantage SE template to select materials. The confirmed results by experts show that this model allows companies to analyze their suppliers efficiently.

Keywords

Supplier Selection Supplier Evaluation MCDM AHP TOPSIS

References

  • Wu, Z., Choi, T. Y., & Rungtusanatham, M. J. (2010). Supplier–supplier relationships in buyer–supplier–supplier triads: Implications for supplier performance. Journal of Operations Management, 28(2), 115-123.
  • Agarwal, P., Sahai, M., Mishra, V., Bag, M., & Singh, V. (2011). A review of multi-criteria decision making techniques for supplier evaluation and selection. International journal of industrial engineering computations, 2(4), 801-810.
  • Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2020). Purchasing and supply chain management. Cengage Learning.
  • Pitchipoo, P., Venkumar, P., & Rajakarunakaran, S. (2014). Grey decision model for supplier evaluation and selection in process industry: a comparative perspective. The International Journal of Advanced Manufacturing Technology, 76, 2059–2069.
  • Shahroudi, K., & Rouydel, H. (2012). Using a multi-criteria decision making approach(ANP-TOPSIS) to evaluate suppliers in Iran’s auto industry. International Journal of Applied Operational Research - An Open Access Journal
  • Memari, A., Dargi, A., Jokar, M. R., Ahmad, R., & Rahim, R. A. (2019). Sustainable supplier selection: A multi-criteria intuitionistic fuzzy TOPSIS method. Journal of Manufacturing Systems, 50, 9-24.
  • Sarı, T., & Timor, M. (2016). Integrated supplier selection model using ANP, taguchi loss function and promethee Methods. Journal of Applied Quantitative Methods, 11(1), 19-34
  • Yıldız, A., & Yayla, Y. (2017). Application of fuzzy TOPSIS and generalized Choquet integral methods to select the best supplier. Decision Science Letters, 6(2), 137-150. doi:10.5267/j.dsl.2016.11.001.
  • Gavade, R. K. (2014). Multi-Criteria decision making: An overview of different selection problems and methods. International Journal of Computer Science and Information Technologies, 5(4), 5643-5646.
  • Supçiller, A., & Çapraz, O. (2011). AHP-TOPSIS yöntemi̇ne dayali tedari̇kçi̇ seçi̇mi̇ uygulamasi. Istanbul University Econometrics and Statistics e-Journal, (13), 1-22.
  • Ristono, A., -, P., Santoso, P. B., & Tama, I. P. (2018). A literature review of criteria selection in supplier. Journal of Industrial Engineering and Management, 11(4), 680-696. doi:http://dx.doi.org/10.3926/jiem.2203
  • Çetinkaya Bozkurt, Ö. (2021). Selecting the Suppliers with TOPSIS and Determining Their Development Status by Using Heuristic Optimization. Acta Infologica, 5(1), 53-64
  • Alkan, T., & Durduran, S. S. (2020). Analysis of Housing Selection Process with AHP Based TOPSIS Method. Necmettin Erbakan University Journal of Science and Engineering Sciences, 2(2), 12-21. Retrieved from https://dergipark.org.tr/tr/pub/neufmbd/issue/59145/820073.
  • Oral, C., & Geçdoğan, S. (2020). Kurumsal Sürdürülebilirlik Ölçümü İçin AHP ve TOPSIS Yöntemlerinin Kullanılması: Bankacılık Sektörü Üzerine Bir Uygulama. İşletme Araştırmaları Dergisi, 12(4), 4166-4183
  • Taş C., Bedir, N., Eren T., Alagaş H. M., & Çetin, S. (2018). AHP-TOPSIS yöntemleri entegrasyonu ile poliklinik değerlendirilmesi: Ankara’da bir uygulama. Sağlık Yönetimi Dergisi, 2(1), 1-17.
  • Yang, H., Zhang, X., Fu, K. et al. Comprehensive evaluation of urban water supply security based on the VIKOR-TOPSIS method. Environ Sci Pollut Res 30, 8363–8375 (2023). https://doi.org/10.1007/s11356-022-24493-5
  • Şahin, A., ve B. Sarı, E. (2019). ENTROPİ tabanlı TOPSIS ve VIKOR yöntemleriyle Bıst-imalat işletmelerinin finansal ve borsa performanslarının karşılaştırılması. Muhasebe ve Vergi Uygulamaları Dergisi, 12 (2), 255-270.
  • Leong, W.Y.; Wong, K.Y.; Wong, W.P. A New Integrated Multi-Criteria Decision-Making Model for Resilient Supplier Selection. Appl. Syst. Innov. 2022, 5, 8. https://doi.org/10.3390/asi5010008
  • Göncü, K. K., & Çetin, O. (2022). A Decision Model for Supplier Selection Criteria in Healthcare Enterprises with Dematel ANP Method. Sustainability, 14(21), 13912..
  • Singh, A., Gupta, A., & Mehra, A. (2020). Best criteria selection based PROMETHEE II method. OPSEARCH (58), 160–180. doi:10.1007/s12597-020-00464-7.
  • Özdemir, A. (2010). Ürün grupları temelinde tedarikçi seçim probleminin ele alınması ve analitik hiyerarşi süreci ile çözümlenmesi. Afyon Kocatepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 12(1), 55 - 84.
  • Kabadayi, N., & Sündüs, D. A. Ğ. (2017). Bulanik Dematel Ve Bulanik Promethee Yöntemleri İle Kablo Üretiminde Makine Seçimi. Karadeniz Teknik Üniversitesi Sosyal Bilimler Enstitüsü Sosyal Bilimler Dergisi, 7(14), 239-260.
  • Eleren, A., & Ersoy, M. (2007). Evaluation of marble extraction methods by using fuzzy topics method. The Journal of the Chamber of Mining Engineers of Turkey, 46(3), 9-22.
  • Sahin, B., Yip, T. L., Tseng, P. H., Kabak, M., & Soylu, A. (2020). An application of a fuzzy TOPSIS multi-criteria decision analysis algorithm for dry bulk carrier selection. Information, 11(5), 251.
  • Akpınar, M. E. (2021). An Applıcatıon On The Most Suıtable Supplıer Selectıon Wıth Fuzzy Topsıs And Fuzzy Vıkor Methods. Dokuz Eylül Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 23(2), 627-640.
  • Huang, C. Y., Shyu, J. Z., & Tzeng, G. H. (2007). Reconfiguring the innovation policy portfolios for Taiwan's SIP Mall industry. Technovation, 27(12), 744-765.
  • Raut, R. D., Bhasin, H. V., & Kamble, S. (2011, 6). Evaluation of supplier selection criteria by combination of AHP and fuzzy DEMATEL method. International Journal of Business Innovation and Research, 5(4), 359 - 392. doi:10.1504/IJBIR.2011.041056
  • Chang, D. Y. (1996). Applications of the extent analysis method on fuzzy AHP. European journal of operational research, 95(3), 649-655.
  • Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European journal of operational research, 2(6), 429-444.
  • Kuo, R. J., & Lin, Y. J. (2012). Supplier selection using analytic network process and data envelopment analysis. International Journal of Production Research, 50(11), 2852-2863.
  • Ar, İ. M. , Gökşen, H. & Tuncer, M. A. (2015). Using Integrated DEMATEL-ANP-VIKOR Method for Supplier Selection in Cable Sector. Ege Academic Review, 15 (2), 285-300. Retrieved from https://dergipark.org.tr/tr/pub/eab/issue/39938/474510.
  • Opricovic, S., & Tzeng, G.-H. (2004). Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS. European Journal of Operational Research, 156(2), 445-455. doi:10.1016/S0377-2217(03)00020-1
  • Dalkey, N., & Helmer, O. (1963). An experimental application of the Delphi method to the use of experts. Management science, 9(3), 458-467.
  • Gidiagba, J., Tartibu, L., & Okwu, M. (2023). Sustainable supplier selection in the oil and gas industry: An integrated multi-criteria decision making approach. Procedia Computer Science, 217, 1243-1255.
  • Pearson, K. (1901). LIII. On lines and planes of closest fit to systems of points in space. The London, Edinburgh, and Dublin Philosophical Magazine and Journal of Science, 2(11), 559-572. doi:10.1080/14786440109462720.
  • Hotelling, H. (1933). Analysis of a complex of statistical variables into principal components. Journal of Educational Psychology (24), 417–441, and 498–520.
  • Petroni, A., & Braglia, M. (2000). Vendor Selection Using Principal Component Analysis. The Journal of Supply Chain Management, 2(36), 63-69.
  • To, S., & Kritchanchai, D. Sustainable Supplier Selection in a Hospital Using the Fuzzy TOPSIS method: a Case Study. . roceedings of the 5 th European International Conference on Industrial Engineering and Operations Management, Rome, Italy, July 26-28, 2022
  • Organ, A. (2013). Bulanık Dematel yöntemiyle makine seçimini etkileyen kriterlerin değerlendirilmesi. Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 22(1), 157-172
  • Karaoğlan, S., & Şahin, S. (2016). DEMATEL ve AHP yöntemleri ile işletmelerin satın alma problemine bütünleşik bir yaklaşım, DSLR kamera örneği. İşletme Araştırmaları Dergisi, 8(2), 359-375.
  • Baykasoğlu, A., Kaplanoğlu, V., Durmuşoğlu, Z. D., & Şahin, C. (2013). Integrating fuzzy DEMATEL and fuzzy hierarchical TOPSIS methods for truck selection. Expert Systems with Applications, 40(3), 899-907.
  • Dalalah, D., Hayajneh, M., & Batieha, F. (2011). A fuzzy multi-criteria decision making model for supplier selection. Expert Systems with Applications, 38(7), 8384-8391
  • Chen, T. Y., & Tsao, Y. C. (2008). The interval-valued fuzzy TOPSIS method and experimental analysis. Fuzzy Sets Systems, 159, 1410-1428.
  • Wang, Y. (2018). Application of TOPSIS and AHP in the Multi-Objective Decision-Making Problems. MATEC Web of Conferences, 228, p. 05002.

A New Dynamic Supplier Selection and Supplier Evaluation Model in a Company for Decision-Making Process

Year 2022, Volume: 2 Issue: 2, 52 - 60, 27.02.2023

Pınar Azimli Yalçın Çebi

Abstract

Supplier selection and evaluation processes are the companies’ most critical decision-making processes. To achieve the desired customer satisfaction, selecting the most suitable supplier and evaluating the suppliers with objective criteria and scientific methods is essential. Supplier Selection (SS) is a strategic decision that a company implements when searching for a new supplier. In contrast, Supplier Evaluation (SE) refers to selecting suppliers among their existing suppliers. As criteria and weights are different in the supplier decision of the companies, a flexible and extensible model called the Dynamic Supplier Analysis Model (DSAM) is developed. This model enables the creation of criteria groups under SS and SE templates, assigning weights to criteria, and applying Multi-Criteria Decision-Making (MCDM) methods. A software program, Dynamic Application for Supplier Analysis Model (DAppSAM), is developed to implement the DSAM model in one of the world’s leading chemical companies using an Enterprise Resource Planning System (ERP) as a case study. Decision-Making Trial and Evaluation Laboratory (DEMATEL) method is applied to calculate criterion weight using dependencies and relationships between criteria. The Analytical Hierarchy Process (AHP) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) MCDM methods were applied using a quality advantage SE template to select materials. The confirmed results by experts show that this model allows companies to analyze their suppliers efficiently.

Keywords

Supplier Selection Supplier Evaluation MCDM AHP TOPSIS

References

  • Wu, Z., Choi, T. Y., & Rungtusanatham, M. J. (2010). Supplier–supplier relationships in buyer–supplier–supplier triads: Implications for supplier performance. Journal of Operations Management, 28(2), 115-123.
  • Agarwal, P., Sahai, M., Mishra, V., Bag, M., & Singh, V. (2011). A review of multi-criteria decision making techniques for supplier evaluation and selection. International journal of industrial engineering computations, 2(4), 801-810.
  • Monczka, R. M., Handfield, R. B., Giunipero, L. C., & Patterson, J. L. (2020). Purchasing and supply chain management. Cengage Learning.
  • Pitchipoo, P., Venkumar, P., & Rajakarunakaran, S. (2014). Grey decision model for supplier evaluation and selection in process industry: a comparative perspective. The International Journal of Advanced Manufacturing Technology, 76, 2059–2069.
  • Shahroudi, K., & Rouydel, H. (2012). Using a multi-criteria decision making approach(ANP-TOPSIS) to evaluate suppliers in Iran’s auto industry. International Journal of Applied Operational Research - An Open Access Journal
  • Memari, A., Dargi, A., Jokar, M. R., Ahmad, R., & Rahim, R. A. (2019). Sustainable supplier selection: A multi-criteria intuitionistic fuzzy TOPSIS method. Journal of Manufacturing Systems, 50, 9-24.
  • Sarı, T., & Timor, M. (2016). Integrated supplier selection model using ANP, taguchi loss function and promethee Methods. Journal of Applied Quantitative Methods, 11(1), 19-34
  • Yıldız, A., & Yayla, Y. (2017). Application of fuzzy TOPSIS and generalized Choquet integral methods to select the best supplier. Decision Science Letters, 6(2), 137-150. doi:10.5267/j.dsl.2016.11.001.
  • Gavade, R. K. (2014). Multi-Criteria decision making: An overview of different selection problems and methods. International Journal of Computer Science and Information Technologies, 5(4), 5643-5646.
  • Supçiller, A., & Çapraz, O. (2011). AHP-TOPSIS yöntemi̇ne dayali tedari̇kçi̇ seçi̇mi̇ uygulamasi. Istanbul University Econometrics and Statistics e-Journal, (13), 1-22.
  • Ristono, A., -, P., Santoso, P. B., & Tama, I. P. (2018). A literature review of criteria selection in supplier. Journal of Industrial Engineering and Management, 11(4), 680-696. doi:http://dx.doi.org/10.3926/jiem.2203
  • Çetinkaya Bozkurt, Ö. (2021). Selecting the Suppliers with TOPSIS and Determining Their Development Status by Using Heuristic Optimization. Acta Infologica, 5(1), 53-64
  • Alkan, T., & Durduran, S. S. (2020). Analysis of Housing Selection Process with AHP Based TOPSIS Method. Necmettin Erbakan University Journal of Science and Engineering Sciences, 2(2), 12-21. Retrieved from https://dergipark.org.tr/tr/pub/neufmbd/issue/59145/820073.
  • Oral, C., & Geçdoğan, S. (2020). Kurumsal Sürdürülebilirlik Ölçümü İçin AHP ve TOPSIS Yöntemlerinin Kullanılması: Bankacılık Sektörü Üzerine Bir Uygulama. İşletme Araştırmaları Dergisi, 12(4), 4166-4183
  • Taş C., Bedir, N., Eren T., Alagaş H. M., & Çetin, S. (2018). AHP-TOPSIS yöntemleri entegrasyonu ile poliklinik değerlendirilmesi: Ankara’da bir uygulama. Sağlık Yönetimi Dergisi, 2(1), 1-17.
  • Yang, H., Zhang, X., Fu, K. et al. Comprehensive evaluation of urban water supply security based on the VIKOR-TOPSIS method. Environ Sci Pollut Res 30, 8363–8375 (2023). https://doi.org/10.1007/s11356-022-24493-5
  • Şahin, A., ve B. Sarı, E. (2019). ENTROPİ tabanlı TOPSIS ve VIKOR yöntemleriyle Bıst-imalat işletmelerinin finansal ve borsa performanslarının karşılaştırılması. Muhasebe ve Vergi Uygulamaları Dergisi, 12 (2), 255-270.
  • Leong, W.Y.; Wong, K.Y.; Wong, W.P. A New Integrated Multi-Criteria Decision-Making Model for Resilient Supplier Selection. Appl. Syst. Innov. 2022, 5, 8. https://doi.org/10.3390/asi5010008
  • Göncü, K. K., & Çetin, O. (2022). A Decision Model for Supplier Selection Criteria in Healthcare Enterprises with Dematel ANP Method. Sustainability, 14(21), 13912..
  • Singh, A., Gupta, A., & Mehra, A. (2020). Best criteria selection based PROMETHEE II method. OPSEARCH (58), 160–180. doi:10.1007/s12597-020-00464-7.
  • Özdemir, A. (2010). Ürün grupları temelinde tedarikçi seçim probleminin ele alınması ve analitik hiyerarşi süreci ile çözümlenmesi. Afyon Kocatepe Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 12(1), 55 - 84.
  • Kabadayi, N., & Sündüs, D. A. Ğ. (2017). Bulanik Dematel Ve Bulanik Promethee Yöntemleri İle Kablo Üretiminde Makine Seçimi. Karadeniz Teknik Üniversitesi Sosyal Bilimler Enstitüsü Sosyal Bilimler Dergisi, 7(14), 239-260.
  • Eleren, A., & Ersoy, M. (2007). Evaluation of marble extraction methods by using fuzzy topics method. The Journal of the Chamber of Mining Engineers of Turkey, 46(3), 9-22.
  • Sahin, B., Yip, T. L., Tseng, P. H., Kabak, M., & Soylu, A. (2020). An application of a fuzzy TOPSIS multi-criteria decision analysis algorithm for dry bulk carrier selection. Information, 11(5), 251.
  • Akpınar, M. E. (2021). An Applıcatıon On The Most Suıtable Supplıer Selectıon Wıth Fuzzy Topsıs And Fuzzy Vıkor Methods. Dokuz Eylül Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 23(2), 627-640.
  • Huang, C. Y., Shyu, J. Z., & Tzeng, G. H. (2007). Reconfiguring the innovation policy portfolios for Taiwan's SIP Mall industry. Technovation, 27(12), 744-765.
  • Raut, R. D., Bhasin, H. V., & Kamble, S. (2011, 6). Evaluation of supplier selection criteria by combination of AHP and fuzzy DEMATEL method. International Journal of Business Innovation and Research, 5(4), 359 - 392. doi:10.1504/IJBIR.2011.041056
  • Chang, D. Y. (1996). Applications of the extent analysis method on fuzzy AHP. European journal of operational research, 95(3), 649-655.
  • Charnes, A., Cooper, W. W., & Rhodes, E. (1978). Measuring the efficiency of decision making units. European journal of operational research, 2(6), 429-444.
  • Kuo, R. J., & Lin, Y. J. (2012). Supplier selection using analytic network process and data envelopment analysis. International Journal of Production Research, 50(11), 2852-2863.
  • Ar, İ. M. , Gökşen, H. & Tuncer, M. A. (2015). Using Integrated DEMATEL-ANP-VIKOR Method for Supplier Selection in Cable Sector. Ege Academic Review, 15 (2), 285-300. Retrieved from https://dergipark.org.tr/tr/pub/eab/issue/39938/474510.
  • Opricovic, S., & Tzeng, G.-H. (2004). Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS. European Journal of Operational Research, 156(2), 445-455. doi:10.1016/S0377-2217(03)00020-1
  • Dalkey, N., & Helmer, O. (1963). An experimental application of the Delphi method to the use of experts. Management science, 9(3), 458-467.
  • Gidiagba, J., Tartibu, L., & Okwu, M. (2023). Sustainable supplier selection in the oil and gas industry: An integrated multi-criteria decision making approach. Procedia Computer Science, 217, 1243-1255.
  • Pearson, K. (1901). LIII. On lines and planes of closest fit to systems of points in space. The London, Edinburgh, and Dublin Philosophical Magazine and Journal of Science, 2(11), 559-572. doi:10.1080/14786440109462720.
  • Hotelling, H. (1933). Analysis of a complex of statistical variables into principal components. Journal of Educational Psychology (24), 417–441, and 498–520.
  • Petroni, A., & Braglia, M. (2000). Vendor Selection Using Principal Component Analysis. The Journal of Supply Chain Management, 2(36), 63-69.
  • To, S., & Kritchanchai, D. Sustainable Supplier Selection in a Hospital Using the Fuzzy TOPSIS method: a Case Study. . roceedings of the 5 th European International Conference on Industrial Engineering and Operations Management, Rome, Italy, July 26-28, 2022
  • Organ, A. (2013). Bulanık Dematel yöntemiyle makine seçimini etkileyen kriterlerin değerlendirilmesi. Çukurova Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 22(1), 157-172
  • Karaoğlan, S., & Şahin, S. (2016). DEMATEL ve AHP yöntemleri ile işletmelerin satın alma problemine bütünleşik bir yaklaşım, DSLR kamera örneği. İşletme Araştırmaları Dergisi, 8(2), 359-375.
  • Baykasoğlu, A., Kaplanoğlu, V., Durmuşoğlu, Z. D., & Şahin, C. (2013). Integrating fuzzy DEMATEL and fuzzy hierarchical TOPSIS methods for truck selection. Expert Systems with Applications, 40(3), 899-907.
  • Dalalah, D., Hayajneh, M., & Batieha, F. (2011). A fuzzy multi-criteria decision making model for supplier selection. Expert Systems with Applications, 38(7), 8384-8391
  • Chen, T. Y., & Tsao, Y. C. (2008). The interval-valued fuzzy TOPSIS method and experimental analysis. Fuzzy Sets Systems, 159, 1410-1428.
  • Wang, Y. (2018). Application of TOPSIS and AHP in the Multi-Objective Decision-Making Problems. MATEC Web of Conferences, 228, p. 05002.
There are 44 citations in total.

Details

Primary Language English
Subjects Software Engineering
Journal Section Research Articles
Authors

Pınar Azimli 0000-0002-0824-2456

Yalçın Çebi 0000-0002-2330-4440

Publication Date February 27, 2023
Published in Issue Year 2022 Volume: 2 Issue: 2

Cite

APA Azimli, P., & Çebi, Y. (2023). A New Dynamic Supplier Selection and Supplier Evaluation Model in a Company for Decision-Making Process. Journal of Emerging Computer Technologies, 2(2), 52-60.
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