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Supplier Selection for Automotive Industry Using Multi-Criteria Decision Making Techniques

Year 2013, Volume: 3 Issue: 4, 126 - 137, 23.07.2016

Abstract

This paper is aimed to suggest an approach for evaluating and selecting suppliers for an automotive manufacturing company, based on multi-criteria decision making methods. As an initial step, main criteria and sub-criteria which affect the evaluation and selection process of a supplier are identified. Secondly, DEMATEL approach is implemented to the main criteria in order to expose cause and affect interrelationship among them which is required by Analytic Network Process (ANP) method. At the third step, ANP methodology is applied for calculating the weights of each sub-criterion. After obtaining the weights of the sub-criteria, alternative suppliers are evaluated and ranked using TOPSIS method. At the end, the supplier with the highest performance indices is selected as the best supplier

References

  • Boran, F.E., Genç, S., Kurt, M., Akay, D., (2009), A multi-criteria intuitionistic fuzzy group decision making for supplier selection with TOPSIS method, Expert Systems with Applications, 36, 11363–11368.
  • Chang, B., Chang, C.-W., Wu, C.-H., (2011), Fuzzy DEMATEL method for developing supplier selection criteria, Expert Systems with Applications, 38, 1850-1858.
  • Chen, S.J., Hwang, C.L. (1992). Fuzzy multiple attribute decision making: Methods and applications. Berlin: Springer-Verlag.
  • Choy, K.L., Lee, W.B., (2002), A generic tool for the selection and management of supplier relationships in an outsourced manufacturing environment: The application of case based reasoning, Logistics Information Management, 15 (4), 235–253.
  • Dalalah, D., Hayajneh, M., Batieha, F., (2011), A fuzzy multi-criteria decision making model for supplier selection, Expert Systems with Applications, 38, 8384–8391.
  • Demirtas, E.A., Üstün, Ö., (2008), An integrated multi-objective decision making process for supplier selection and order allocation, Omega-The International Journal of Management Science, 36, 76-90.
  • Dickson, G.W., (1966), An analysis of vendor selection systems and decisions, Journal of Purchasing, 2, 5-17.
  • Ding, H., Benyoucef, L., Xie, X., (2005), A simulation optimization methodology for supplier selection problem, International Journal Computer Integrated Manufacturing, 18 (2–3), 210–224.
  • Gabus, A., Fontela, E., 1972. World Problems. An Invitation to Further Thought Within TheFramework of DEMATEL. Battelle Geneva Research Centre. Geneva.
  • Gencer, C., Gürpinar, D., (2007), Analytic network process in supplier selection: A case study in an electronic firm, Applied Mathematical Modeling, 31 (11), 2475–2486.
  • 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, 16–24.
  • Hsu, C.-W., Hu, A.H., (2009), Applying hazardous substance management to supplier selection using analytic network process, Journal of Cleaner Production, 17, 255–264
  • Hwang, C.L., Yoon, K.S. (1981). Multiple attribute decision making: Method and applications. NY: Springer.
  • Karpak, B., Kumcu, E., Kasuganti, R.R., (2001), Purchasing materials in the supply chain: Managing a multi-objective task, European Journal of Purchasing and Supply Management, 7 (3), 209–216.
  • Lee, A.H.I., (2009), A fuzzy supplier selection model with the consideration of benefits, opportunities, costs and risks, Expert Systems with Applications, 36, 2879–2893.
  • Lin, C.T., Wu, C.S., 2008. Selecting marketing strategy for private hotels in Taiwan using the analytic hierarchy process. The Service Industries Journal, 28(8), 1077–1091.
  • Ming-Lang, T., Chiang, J.H., Lan, L.W., (2009), Selection of optimal supplier in supply chain management strategy with analytic network process and choquet integral, Computers and industrial engineering, 57, 330-340.
  • Ng, W.L., (2008), An efficient and simple model for multiple criteria supplier selection problem, European Journal of Operational Research 186 (3), 1059–1067.
  • Opricovic, S., Tzeng, G.H. (2004). Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS. European Journal of Operational Research, 156, 445-455.
  • Önüt, S., Kara, S.S., Işik, E., (2009), Long term supplier selection using a combined fuzzy MCDM approach: A case study for a telecommunication company, Expert Systems with Applications, 36, 3887–3895.
  • Razmi, J., Rafiei, H., Hashemi, M. (2009), Designing a decision support system to evaluate and select suppliers using fuzzy analytic network process, Computers and Industrial Engineering, 57, 1282-1290.
  • Ross, A., Buffa, F.P., Dröge, C., Carrington, D., (2006). Supplier evaluation in a dyadic relationship: An action research approach, Journal of Business Logistics, 27 (2), 75–102.
  • Saaty, T.L. (1996). Decision Making with Dependence and Feedback: Analytic Network Process, RWS Publications, Pittsburgh.
  • Saaty, T.L., (2001). Decision making with dependence and feedback: The analytic network process. RWS Publications. Pittsburgh.
  • Saaty, T.L., (2005). Theory and Applications of the Analytic Network Process. RWS Publications. Pittsburgh.
  • Saaty, T.L., Vargas, L.G., (1998). Diagnosis with dependent symptoms: Bayes theorem and the analytic network process. Operations Research, 46(4), 491–502.
  • Saen, R.F., (2007), Suppliers selection in the presence of both cardinal and ordinal data. European Journal of Operational Research, 183 (2), 741–747.
  • Triantaphyllou, E. (2000). Multiple-criteria decision making methods: A comparative study. Kluwer Academic Publishers, Dordrecht.
  • Vinodh, S., Ramiya, R.A., Gautham, S.G., (2011), Application of fuzzy analytic network process for supplier selection in a manufacturing organization, Expert Systems with Applications, 38, 272-280.
  • Wadhwa, V., Ravindran, A.R., (2007), Vendor selection in outsourcing, Computers and Operations Research 34 (12), 3725–3737.
  • Wang, J.-W., Cheng, C.-H., Kun-Cheng, H., (2009), Fuzzy hierarchical TOPSIS for supplier selection, Applied Soft Computing, 9, 377–386.
  • Wu, T., Shunk, D., Blackhurst, J., Appalla, R., (2007), AIDEA: A methodology for supplier evaluation and selection in a supplier-based manufacturing environment, International Journal of Manufacturing Technology and Management, 11 (2), 174–192.
  • Yang, H.W., Chang, K.F., (2012). Combining means-end chain and fuzzy ANP to explore customers’ decision process in selecting bundles. International Journal of Information Management, 32, 381– 395.
Year 2013, Volume: 3 Issue: 4, 126 - 137, 23.07.2016

Abstract

References

  • Boran, F.E., Genç, S., Kurt, M., Akay, D., (2009), A multi-criteria intuitionistic fuzzy group decision making for supplier selection with TOPSIS method, Expert Systems with Applications, 36, 11363–11368.
  • Chang, B., Chang, C.-W., Wu, C.-H., (2011), Fuzzy DEMATEL method for developing supplier selection criteria, Expert Systems with Applications, 38, 1850-1858.
  • Chen, S.J., Hwang, C.L. (1992). Fuzzy multiple attribute decision making: Methods and applications. Berlin: Springer-Verlag.
  • Choy, K.L., Lee, W.B., (2002), A generic tool for the selection and management of supplier relationships in an outsourced manufacturing environment: The application of case based reasoning, Logistics Information Management, 15 (4), 235–253.
  • Dalalah, D., Hayajneh, M., Batieha, F., (2011), A fuzzy multi-criteria decision making model for supplier selection, Expert Systems with Applications, 38, 8384–8391.
  • Demirtas, E.A., Üstün, Ö., (2008), An integrated multi-objective decision making process for supplier selection and order allocation, Omega-The International Journal of Management Science, 36, 76-90.
  • Dickson, G.W., (1966), An analysis of vendor selection systems and decisions, Journal of Purchasing, 2, 5-17.
  • Ding, H., Benyoucef, L., Xie, X., (2005), A simulation optimization methodology for supplier selection problem, International Journal Computer Integrated Manufacturing, 18 (2–3), 210–224.
  • Gabus, A., Fontela, E., 1972. World Problems. An Invitation to Further Thought Within TheFramework of DEMATEL. Battelle Geneva Research Centre. Geneva.
  • Gencer, C., Gürpinar, D., (2007), Analytic network process in supplier selection: A case study in an electronic firm, Applied Mathematical Modeling, 31 (11), 2475–2486.
  • 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, 16–24.
  • Hsu, C.-W., Hu, A.H., (2009), Applying hazardous substance management to supplier selection using analytic network process, Journal of Cleaner Production, 17, 255–264
  • Hwang, C.L., Yoon, K.S. (1981). Multiple attribute decision making: Method and applications. NY: Springer.
  • Karpak, B., Kumcu, E., Kasuganti, R.R., (2001), Purchasing materials in the supply chain: Managing a multi-objective task, European Journal of Purchasing and Supply Management, 7 (3), 209–216.
  • Lee, A.H.I., (2009), A fuzzy supplier selection model with the consideration of benefits, opportunities, costs and risks, Expert Systems with Applications, 36, 2879–2893.
  • Lin, C.T., Wu, C.S., 2008. Selecting marketing strategy for private hotels in Taiwan using the analytic hierarchy process. The Service Industries Journal, 28(8), 1077–1091.
  • Ming-Lang, T., Chiang, J.H., Lan, L.W., (2009), Selection of optimal supplier in supply chain management strategy with analytic network process and choquet integral, Computers and industrial engineering, 57, 330-340.
  • Ng, W.L., (2008), An efficient and simple model for multiple criteria supplier selection problem, European Journal of Operational Research 186 (3), 1059–1067.
  • Opricovic, S., Tzeng, G.H. (2004). Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS. European Journal of Operational Research, 156, 445-455.
  • Önüt, S., Kara, S.S., Işik, E., (2009), Long term supplier selection using a combined fuzzy MCDM approach: A case study for a telecommunication company, Expert Systems with Applications, 36, 3887–3895.
  • Razmi, J., Rafiei, H., Hashemi, M. (2009), Designing a decision support system to evaluate and select suppliers using fuzzy analytic network process, Computers and Industrial Engineering, 57, 1282-1290.
  • Ross, A., Buffa, F.P., Dröge, C., Carrington, D., (2006). Supplier evaluation in a dyadic relationship: An action research approach, Journal of Business Logistics, 27 (2), 75–102.
  • Saaty, T.L. (1996). Decision Making with Dependence and Feedback: Analytic Network Process, RWS Publications, Pittsburgh.
  • Saaty, T.L., (2001). Decision making with dependence and feedback: The analytic network process. RWS Publications. Pittsburgh.
  • Saaty, T.L., (2005). Theory and Applications of the Analytic Network Process. RWS Publications. Pittsburgh.
  • Saaty, T.L., Vargas, L.G., (1998). Diagnosis with dependent symptoms: Bayes theorem and the analytic network process. Operations Research, 46(4), 491–502.
  • Saen, R.F., (2007), Suppliers selection in the presence of both cardinal and ordinal data. European Journal of Operational Research, 183 (2), 741–747.
  • Triantaphyllou, E. (2000). Multiple-criteria decision making methods: A comparative study. Kluwer Academic Publishers, Dordrecht.
  • Vinodh, S., Ramiya, R.A., Gautham, S.G., (2011), Application of fuzzy analytic network process for supplier selection in a manufacturing organization, Expert Systems with Applications, 38, 272-280.
  • Wadhwa, V., Ravindran, A.R., (2007), Vendor selection in outsourcing, Computers and Operations Research 34 (12), 3725–3737.
  • Wang, J.-W., Cheng, C.-H., Kun-Cheng, H., (2009), Fuzzy hierarchical TOPSIS for supplier selection, Applied Soft Computing, 9, 377–386.
  • Wu, T., Shunk, D., Blackhurst, J., Appalla, R., (2007), AIDEA: A methodology for supplier evaluation and selection in a supplier-based manufacturing environment, International Journal of Manufacturing Technology and Management, 11 (2), 174–192.
  • Yang, H.W., Chang, K.F., (2012). Combining means-end chain and fuzzy ANP to explore customers’ decision process in selecting bundles. International Journal of Information Management, 32, 381– 395.
There are 33 citations in total.

Details

Other ID JA56JM68KT
Journal Section Articles
Authors

Özer Uygun This is me

Hasan Kaçamak This is me

Gizem Ayşim This is me

Fuat Şimşir This is me

Publication Date July 23, 2016
Published in Issue Year 2013 Volume: 3 Issue: 4

Cite

APA Uygun, Ö., Kaçamak, H., Ayşim, G., Şimşir, F. (2016). Supplier Selection for Automotive Industry Using Multi-Criteria Decision Making Techniques. TOJSAT, 3(4), 126-137.
AMA Uygun Ö, Kaçamak H, Ayşim G, Şimşir F. Supplier Selection for Automotive Industry Using Multi-Criteria Decision Making Techniques. TOJSAT. July 2016;3(4):126-137.
Chicago Uygun, Özer, Hasan Kaçamak, Gizem Ayşim, and Fuat Şimşir. “Supplier Selection for Automotive Industry Using Multi-Criteria Decision Making Techniques”. TOJSAT 3, no. 4 (July 2016): 126-37.
EndNote Uygun Ö, Kaçamak H, Ayşim G, Şimşir F (July 1, 2016) Supplier Selection for Automotive Industry Using Multi-Criteria Decision Making Techniques. TOJSAT 3 4 126–137.
IEEE Ö. Uygun, H. Kaçamak, G. Ayşim, and F. Şimşir, “Supplier Selection for Automotive Industry Using Multi-Criteria Decision Making Techniques”, TOJSAT, vol. 3, no. 4, pp. 126–137, 2016.
ISNAD Uygun, Özer et al. “Supplier Selection for Automotive Industry Using Multi-Criteria Decision Making Techniques”. TOJSAT 3/4 (July 2016), 126-137.
JAMA Uygun Ö, Kaçamak H, Ayşim G, Şimşir F. Supplier Selection for Automotive Industry Using Multi-Criteria Decision Making Techniques. TOJSAT. 2016;3:126–137.
MLA Uygun, Özer et al. “Supplier Selection for Automotive Industry Using Multi-Criteria Decision Making Techniques”. TOJSAT, vol. 3, no. 4, 2016, pp. 126-37.
Vancouver Uygun Ö, Kaçamak H, Ayşim G, Şimşir F. Supplier Selection for Automotive Industry Using Multi-Criteria Decision Making Techniques. TOJSAT. 2016;3(4):126-37.