Suppliers Selection In Manufacturing Industries And Associated Multi-Objective Desicion Making Methods: Past, Present And The Future
European Scientific Journal January 2016 edition vol.12
Suppliers Selection In Manufacturing Industries And Associated Multi-Objective Desicion Making Methods: Past, Present And The Future
Dr. Soheil Hassanzadeh Kai Cheng 0
0 College of Engineering, Design and Physical Sciences, Brunel University , Uxbridge, London , UK
Nowadays, many manufacturing companies have decided to use other companies' competencies and outsource part of their manufacturing processes and business to suppliers globally in order to reduce costs, improve quality of products, explore or expand new markets, and offer better services to customers, etc. The decisions have rendered manufacturing organizations with new challenges. Organizations need to evaluate their suppliers' performance, and take account of their weakness and strength in order to win and survive in highly competitive global marketplaces. Hence, suppliers evaluation and selection are taken as an important strategy for manufactring enterprises. This paper aims to provide a comprehensive and critical review on suppliers selection and the formulation of different criteria for suppliers selection, the associated multi-objctive decision makings, selecion algorithms, and their implementation and application perspectives. Furthermore, individual and integrated suppliers selection approaches are presented, including Analytic hierarchy process (AHP), Analytic network process (ANP), and Mathematical programming (MP). Linear programming (LP), Integer programming (IP), Data envelopment analysis (DEA) and Goal programming (GP) are discussed with in-depth. The paper concludes with further discussion on the potential and application of suppliers selection approach for the broad manufacturing industry.
Suppliers selection; Multi-objective decision makings; Selection algorithms; E-manufacturing
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becoming increasingly important for manufacturing companies. They are
practicaly used with delicate strategies in different sections of
manufacturing organisations, such as IT, raw materials, sales, logistics, and
transportation as needed with various managements strategies. According to
the result of a survey by Accenture Consulting (2005), 80% of correspondent
companies are received services and parts from third party logistic providers
and spent almost half of their budgets on outsourcing. Moreover, one of the
main concepts for product realisation process from design stage to delivery
of final product including both goods and services is selecting the best
supplier and optimising purchasing strategy. Hence, it is necessary to
evaluate suppliers performance before using their competencies.
In this paper, a comprehensive and critical review on suppliers
selection and the associated enabling technologies is presented, further
supported with implementation and application cases and analysis. The
review summarizes the past, highlights the state-of-the art and further sheds
the light of the future in the subject domain.
Conception of suppliers selection
Supplier selection is one of the main concepts of this research and is
considered as strategic procurement management in the supply chain.
Purchasing raw materials needs accurate decision making strategies to find
the best suppliers to assure long term feasibility of an organisation
(Thompson, 1990). Existing literature and supplier selection problems
identified by researchers will be discussed in this section based on various
supplier selection criteria.
Dobler et al., (1990),Willis et al., (1993), and Khir and Cheng,
(2012) stated that the procurement department plays a significant role in
enterprise as their managers are responsible for making critical decisions to
select appropriate suppliers in order to reduce ordering/purchasing expenses.
To eliminate the complexity of supplier selection as a multi-objective model,
a broad approach to choose the best supplier was proposed and launched by
Weber and Current (1993). Their main aim was to reduce all expenses
caused by purchasing the enterprise requirements from various suppliers
each time. This model proposed a way to estimate changeable conditions of
selected suppliers over time. Hence, management was able to undertake
essential actions.
A strategic evaluation in manufacturing sectors not only provides
more business opportunities and adequacy to consumers, but also estimates,
monitors, and evaluates the customer demand (Hassanzaedeh and Cheng,
2013). Although, there were only few articles emphasizing decision making
until Weber and Current (1993), Rosenblatt et al., (1998) had a
comprehensive articles review and stated another supplier selection
limitation, which was the amount and purchase time of products or services.
By using ‘kanban’ or ‘just in time’ (JIT) systems and specifying an exact
quantity of requirements from an allocated supplier, the limitation seems to
have been overcome.
Providing a long term deal and a reasonable value to buyer, as well as
removing possible risk for cu (...truncated)