Research Article
BibTex RIS Cite

MULTI-CRITERIA SUPPLIER SELECTION AND PURCHASE PROBLEM

Year 2018, Volume: 36 Issue: 4, 1255 - 1264, 01.12.2018

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).

References

  • [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] 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] Ng., W.L., (2008) An efficient and simple model for Multi-criteria supplier selection problem, European Journal of Operational Research 186, 1059-1067.
  • [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] 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] 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] 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] 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.
  • [9] Ho, W., Xu. X., Dey. P.K., (2010) Multi-criteria decision making approaches for supplier evaluation and selection: A literature review, European Journal of Operational Research 202, 1, 16–24.
  • [10] Alfares, H. K., Turnadi, R., (2018) Lot sizing and supplier selection with multiple items, multiple periods, quantity discounts, and backordering, Computers and Industrial Engineering 116, 2, 59-71.
  • [11] Şenyiğit, E., Demirel B., (2017) Determination of the material for the carbonated soft drink packaging with multi-criteria decision making methods, Sigma Journal of Engineering and Natural Sciences, 35, 3, 471-480.
  • [12] Hamdi, F., Ghorbel, A., Masmoudi, F., Dupont, L., (2018) Optimization of a supply portfolio in the context of supply chain risk management: literature review, Journal of Intelligent Manufacturing, 29,763-788.
  • [13] Burke GJ, Carrillo JE, Vakharia AJ (2007) Single versus multiple supplier sourcing strategies. Eur J Oper Res 182:95–112.
  • [14] Awasthi SS, Chauhan SK, Goyal SK, Proth J (2009) Supplier selection problem for a single manufacturing unit under stochastic demand. Int J Prod Econ 117:229–233.
  • [15] Zhang, J., Zhang, M. (2011) Supplier selection and purchase problem with fixed cost and constrained order quantities under stochastic demand, International Journal of Production Economics, 129, 1, 1-7.
There are 15 citations in total.

Details

Primary Language English
Journal Section Research Articles
Authors

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

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

Publication Date December 1, 2018
Submission Date February 14, 2018
Published in Issue Year 2018 Volume: 36 Issue: 4

Cite

Vancouver Şenyiğit E, Babayiğit B. MULTI-CRITERIA SUPPLIER SELECTION AND PURCHASE PROBLEM. SIGMA. 2018;36(4):1255-64.

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