Modeling Relationship Maps for The Factors of Purchasing Management System According to Selected Key Drivers Using Fuzzy Cognitive Maps

Abstract

Strategic management is the philosophy of the creation which provides a goal, a plan and a model for the competitive advantage.  Companies define their own goals and generate the plan for goal according to this management philosophy. However, company can utilize successively from this philosophy so long as it is able to be adapted to all management systems such as product, inventory, manufacturing and etc... Purchasing management system is the one of them. It is a basic management unit where decisions, goals and plans are structured according to production and customer requirements which give the competitive advantage to each company. All of them can be managed strategically by being focused on the appropriate purchasing conditions including low-cost, high quality, and on-time delivery. In this study, we will determine variables and the relationships between them which affect in achieving the strategies of the company in terms of purchasing management system. Fuzzy cognitive mapping method will be selected in order to find them out because this method creates a map by using some strategies for system. The results will be presented at the end of the study.  

Keywords

• Purchasing Management System,Fuzzy Cognitive Map,Relationship Maps for Cost,Quality and Delivery Drivers

References

1. [1] Azadeh, M.A, Harandi, S.J., Izadbakhsh, H., “Re-engineering design of purchasing system by BPS and PCA” Industrial Informatics 2006 IEEE International Conference, pp. 863-869, 2007.
2. [2] Baier, C., Hartmann, E., Moser, R., “Strategic alignment and purchasing efficacy: an exploratory analysis of their impact on financial performance”, Journal of Supply Chain Management, Vol. 44, pp. 36-52, 2008.
3. [3] Bourne, M., Mills, J., Wilcox, M., Neely, A., Platts, K.,“Designing, implementing and updating performance measurement systems”, International Journal of Operations and Production Management, Vol. 20, pp.754-771, 2000.
4. [4] Carr, A., Pearson, J., ”The impact of purchasing and supplier involvement on strategic purchasing and its impact on firm’s performance”, International Journal of Operations and Production Management, Vol. 22, pp. 1032–1053, 2002.
5. [5] Chen, I.J., Paulraj, A., Lado, A., “Strategic purchasing, supply management, and firm performance”, Journal of Operations Management, Vol. 22, pp. 505–523, 2004.
6. [6] Chrysostomos, S., Stylios, D., Groumpos, P.P., “Fuzzy Cognitive Maps: A model for intelligent supervisory control systems”, Computers in Industry, pp. 229-238, 1999.
7. [7] Cousins, P.D., Lawson, B., Squire, B., “An empirical taxonomy of purchasing functions”, International Journal of Operations and Production Management, Vol. 26, pp. 775-794, 2006.
8. [8] Das, A., Narasimhan, R.,“Purchasing Competence and Its Relationship with Manufacturing Performance” The Journal of Supply Chain Management, Vol. 36, pp. 17-20, 2000.

9. [9] Easton, L., Murphy, D.J., Pearson, J.N., “Purchasing performance evaluation: with data envelopment analysis” European Journal of Purchasing and Supply Chain Management, Vol. 8, pp. 123-134, 2002.
10. [10] Ellram, L.M., Zsidisin, G.A., Siferd, S.P., Stanly M.J., “The Impact of Purchasing and Supply Management Activities on Corporate Success” The Journal Of Supply Chain Management, pp. 4-17, 2002.
11. [11] Emiliani, M.L., Stec, D.J., Grasso L.P., “Unintended responses to a traditional purchasing performance metric” Supply Chain Management: An International Journal, Vol. 10, pp.150-156, 2005.
12. [12] Fitzgerald, L., Johnston, R., Brignall, S., Silvestro, R. and Voss, C., “Performance Measurement in Service Business” CIMA, London, 1991.
13. [13] Gonzalez-Benito, J., “A theory of purchasing’s contribution to business performance” Journal of Operations Management, Vol. 25, pp. 901-917, 2007.
14. [14] Hacisalihoglu, M., “Development of a procurement model to enhance supply chain management for manufacturing and non-manufacturing firms purchasing from China” PhD Dissertations, Marmara University, 2006.
15. [15] IAS Training Notes, 2004.
16. [16] Keegan, D.P., Eiler, R.G. and Jones, C.R., “Are your performance measures obsolete?” Management Accounting, pp. 45-50, 1989.
17. [17] Kim, H.S., Lee, K.C.,” Fuzzy implications of fuzzy cognitive map with emphasis on fuzzy causal relationship and fuzzy partially causal relationship”, Fuzzy Sets and Systems, 303-313, 1998.
18. [18] Lee, K. C., Kim, J.S., Chung, N.H., Kwon, S.J., “Fuzzy cognitive map approach to web-mining inference amplification” Expert Systems with applications, pp. 197-211, 2002.
19. [19] Lysons, K., Farrington, B., “Purchasing and Supply Chain Management” 7th ed., Prentice Hall, USA, pp. 514-656, 2006.
20. [20] Narasimhan, R., Das, A., “The impact of purchasing integration and practices on manufacturing performance” Journal of Operations Management, Vol. 19, pp. 593-609, 2001.
21. [21] Narasimhan, R., Jayaram, J., Carter J. R., “An empirical examination of the underlying dimensions of purchasing competence” Production and Operations Management, Vol. 1-15, 2001.
22. [22] Pagell, M., “Understanding the factors that enable and inhibit the integration of operations, purchasing and logistics” Journal of Operations Management, Vol. 22, pp. 459-487, 2004.
23. [23] Pelaez, C., Bowles, J., “Applying fuzzy cognitive maps knowledge representation to failure models effects analysis” In Proceeding of annual reliability and maintainability symposium, pp. 450–456, 1995.
24. [24] Pohl, M., Förstl, K., “Achieving purchasing competence through purchasing performance measurement system design—A multiple-case study analysis” Journal of Purchasing&Supply Management, Vol. 17, pp. 231-245, 2011.
25. [25] Okoli, C., Pawlowski, S., “The Delphi method as a research tool: an example, design considerations and applications” Information and Management, pp. 15–29, 2004.
26. [26] Over, T.”İhtiyaç belirlemede endüktif-Roc temelli bir model”, PhD Dissertation, Sakarya University, 2006.
27. [27] Salmeron J.L.,“Augmented fuzzy cognitive maps for modeling LMS critical success factors” Knowledge Based Systems, 275-278, 2009.
28. [28] Saranga, H., Moser, R., “Performance evaluation of purchasing and supply management using value chain DEA approach” European Journal of Operational Research, 207, 197-205, 2010.
29. [29] Stach, W., Kurgan, L., Pedrycz, W., Reformat, M., “Evolutionary development of fuzzy cognitive maps” The 2005 IEEE International Conference on Fuzzy Systems, 619-624, 2005.
30. [30] Stock, R.J., Lambert, M.D., “Strategic Logistics Management” McGraw-Hill Higher Education, New York, USA, 478-51, 2001.
31. [31] Stylios, C.D., Peter P. Groumpos, P.P., “Fuzzy Cognitive Maps: A soft computing technique for intelligent control” Proceedings of the 15th IEEE International Symposium on Intelligent Control, pp. 97-102, 2000.
32. [32] Stylios C.D., Groumpos P.P., “Modeling complex systems using fuzzy cognitive maps” IEEE Transactions On Systems, Man, And Cybernetics—Part A: Systems And Humans, Vol. 34, pp. 155-162, 2004.
33. [33] Van Weele, A.J.,“Purchasing and Supply Chain Management Analysis: Planning and Practice” Thomson Learning, London, 2002.
34. [34] Wei, Z., Lu, L., Yanchun, Z., “Using fuzzy cognitive maps for modelling and evaluating trust dynamics in the virtual enterprises” Expert Systems with Applications, pp. 1583-1592, 2008.
35. [35] Yalciner, A., “Kurumsal bir imalat bilişim modeli önerisi. PhD Dissertation, Sakarya University, 2007.
36. [36] Yaman, D., Polat, S., “A fuzzy cognitive map approach for effect-based operations: An illustrative case” Information Sciences, Vol. 179, pp. 382–403, 2009.
37. [37]http://help.sap.com/saphelp_46c/helpdata/en/8a/1a1dd44e4211d182be0000e829fbfe/content.htm , SAP Purchasing Process Flow, 2013.
38. [38]http://www.indiana.edu/~purchase/buying/buying.shtml ,Indiana University Purchasing Process, 2013.
39. [39]http://www.mitsubishielectric.com/company/about/procurement/process/index.html , Mitsubishi Electric Procurement- Purchasing Process 2013.