Research Article

MULTI-CRITERIA SUPPLIER SELECTION AND PURCHASE PROBLEM

Volume: 36 Number: 4 December 1, 2018
  • Ercan Şenyiğit
  • Bilal Babayiğit

MULTI-CRITERIA SUPPLIER SELECTION AND PURCHASE PROBLEM

Abstract

In this paper, multi-criteria supplier selection and purchase problem (MCSSPP) is introduced and a solution approach for MCSSPP is proposed. MCSSPP is about purchasing of the raw materials from the best suppliers allowed for the amount of the defect between echelons for a single-product multi-echelon supply chain network (SMSCN). For MCSSPP, the quality, price and distance criteria which had different units were considered. As it is not possible to use different criteria with different units in mathematical model, an alternative mathematical model Ng was used in this study for the solution approach. In the solution approach, first, the best supplier was determined and then SMSCN was optimized with LINDO program by using the mixed-integer linear programming model to minimise the total costs. Total costs comprised of the transportation cost of raw material s from supplier i to factory, the purchasing cost of raw material s from supplier i, the unit transportation cost of product from factory to distribution centre m and unit transportation cost of product from distribution centre m to customer n, the fixed operating cost of factory, the fixed operating cost of distribution centre m, and the production cost. MCSSPP and the proposed solution approach were applied to a chair product of enterprise XYZ in Kayseri, Turkey. The chair product had four raw materials, and each raw material had two suppliers. The mathematical results were compared for the best and the worst models. From 8 different suppliers, the total cost of the best model was obtained as 553926. 6 TLs with 17328 units carcass groups, 17146 units seat groups, 17328 units sponges and 17328 units packages. However, for the worst model, the total cost was 562834.9 TLs with 16964 units carcass groups, 16964 units seat groups, 17143 units sponges and 17143 units packages purchased. In conclusion, by utilizing the proposed mathematical model, the total cost was reduced %1.61 (8908.3 TLs).

Keywords

References

  1. [1] Wang, H.S., (2009) A two-phase ant colony algorithm for multi-echelon defective supply chain network design, European Journal of Operational Research 192, 1, 243–252.
  2. [2] Kilincci, O., Onal, S.A., (2011) Fuzzy AHP approach for supplier selection in a washing machine company, Expert Systems with Applications 38, 9656–9664. Operational Research 202 (1), 16–24.
  3. [3] Ng., W.L., (2008) An efficient and simple model for Multi-criteria supplier selection problem, European Journal of Operational Research 186, 1059-1067.
  4. [4] Che, Z.H., (2010) Using fuzzy analytic hierarchy process and particle swarm optimization for balanced and defective supply chain problems considering WEEE/RoHS directives, International Journal of Production Research 48, 11, 3355–81.
  5. [5] Senyigit, E., Golec, A., A new heuristic for multi-echelon defective supply chain system with stochastic demand, Proceedings of 7th International Symposium of Intelligent and Manufacturing System, 15-17 September 2010, pp.442-452, Sarajevo, Bosnia and Herzegovina.
  6. [6] Senyigit, E., (2013) Supplier selection and purchase problem for multi-echelon defective supply chain system with stochastic demand, Neural Computing and Applications, 22, 2, 403-415.
  7. [7] Senyigit, E., Soylemez, İ., (2012) The analysis of heuristics for lot sizing with supplier selection problem, Procedia - Social and Behavioral Sciences 62, 672–676.
  8. [8] Senyigit, E., (2012) The optimization of lot sizing with supplier selection problem in multi-echelon defective supply chain network, Mathematical and Computer Modelling of Dynamical Systems: Methods, Tools and Applications in Engineering and Related Sciences 18, 3, 273-286.

Details

Primary Language

English

Subjects

-

Journal Section

Research Article

Authors

Ercan Şenyiğit This is me
0000-0002-9388-2633
Türkiye

Bilal Babayiğit This is me
0000-0002-2923-5263
Türkiye

Publication Date

December 1, 2018

Submission Date

February 14, 2018

Acceptance Date

September 25, 2018

Published in Issue

Year 2018 Volume: 36 Number: 4

APA
Şenyiğit, E., & Babayiğit, B. (2018). MULTI-CRITERIA SUPPLIER SELECTION AND PURCHASE PROBLEM. Sigma Journal of Engineering and Natural Sciences, 36(4), 1255-1264. https://izlik.org/JA92ST44GR
AMA
1.Şenyiğit E, Babayiğit B. MULTI-CRITERIA SUPPLIER SELECTION AND PURCHASE PROBLEM. SIGMA. 2018;36(4):1255-1264. https://izlik.org/JA92ST44GR
Chicago
Şenyiğit, Ercan, and Bilal Babayiğit. 2018. “MULTI-CRITERIA SUPPLIER SELECTION AND PURCHASE PROBLEM”. Sigma Journal of Engineering and Natural Sciences 36 (4): 1255-64. https://izlik.org/JA92ST44GR.
EndNote
Şenyiğit E, Babayiğit B (December 1, 2018) MULTI-CRITERIA SUPPLIER SELECTION AND PURCHASE PROBLEM. Sigma Journal of Engineering and Natural Sciences 36 4 1255–1264.
IEEE
[1]E. Şenyiğit and B. Babayiğit, “MULTI-CRITERIA SUPPLIER SELECTION AND PURCHASE PROBLEM”, SIGMA, vol. 36, no. 4, pp. 1255–1264, Dec. 2018, [Online]. Available: https://izlik.org/JA92ST44GR
ISNAD
Şenyiğit, Ercan - Babayiğit, Bilal. “MULTI-CRITERIA SUPPLIER SELECTION AND PURCHASE PROBLEM”. Sigma Journal of Engineering and Natural Sciences 36/4 (December 1, 2018): 1255-1264. https://izlik.org/JA92ST44GR.
JAMA
1.Şenyiğit E, Babayiğit B. MULTI-CRITERIA SUPPLIER SELECTION AND PURCHASE PROBLEM. SIGMA. 2018;36:1255–1264.
MLA
Şenyiğit, Ercan, and Bilal Babayiğit. “MULTI-CRITERIA SUPPLIER SELECTION AND PURCHASE PROBLEM”. Sigma Journal of Engineering and Natural Sciences, vol. 36, no. 4, Dec. 2018, pp. 1255-64, https://izlik.org/JA92ST44GR.
Vancouver
1.Ercan Şenyiğit, Bilal Babayiğit. MULTI-CRITERIA SUPPLIER SELECTION AND PURCHASE PROBLEM. SIGMA [Internet]. 2018 Dec. 1;36(4):1255-64. Available from: https://izlik.org/JA92ST44GR

IMPORTANT NOTE: JOURNAL SUBMISSION LINK https://eds.yildiz.edu.tr/sigma/