• IE interfaces
• /
• v.17 no.2
• /
• pp.169-179
• /
• 2004

In supply chain management, supplier capacity is very important to meet the customer demand quickly. This paper studies a supplier evaluation structure and then suggests a methodology using fuzzy theory for selecting an effective supplier. Several quantitative and qualitative evaluation factors should be analyzed in the evaluation structure. The qualitative factors includes not only product and service qualities but financial condition. The methodology deals with both the quantitative and qualitative factors together through fuzzy inference. A case study is also presented to show how to choose the best one among potential suppliers.

• Journal of the Korea Safety Management & Science
• /
• v.13 no.4
• /
• pp.117-124
• /
• 2011

Supplier selection is one of the most important activities of a company. This importance is increased even more by new strategies in a supply chain, because of the key role suppliers perform in terms of quality, costs and services which affect the outcome in the buyer's company. In addition, green production has become an important issue for almost every manufacturer and will determine the sustainability of a manufacturer. Therefore a performance evaluation system for supplier and green suppliers is necessary to determine the suitability of suppliers to cooperate with the company. Supplier and green supplier selection is a multiple criteria decision making problem in which the objectives are not equally important. In practice, vagueness and imprecision of the goals, constraints and parameters in these problems make the decision making complicated. The objective of this study is to construct a decision-making process using fuzzy analytic hierarchy process (FAHP) and balanced scorecard (BSC) for evaluating supplier and green suppliers in the manufacturing industry. The BSC concept is applied to define the hierarchy with four major perspectives and performance indicators are selected for each perspective. FAHP is then proposed in order to tolerate vagueness and ambiguity of information. Finally, FAHP is applied to facilitate the solving process. With the proposed approach, manufacturers can have a better understanding of the capabilities that supplier and green supplier must possess and can evaluate and select the most suitable supplier for cooperation.

• The Journal of Society for e-Business Studies
• /
• v.16 no.1
• /
• pp.101-116
• /
• 2011

As e-Commerce and national public procurement have been enabled, needs of supplier management and evaluation system for national public procurement has been growing. Enterprises have constructed and operated supplier relationship management system, in order to automate and increase their supply chain processes by managing the strategic assessment of relationships with external partners. Recently, PPS(Public Procurement Service) in Korea is introducing the concept of SRM to ensure the fairness of public procurement and to strengthen the competitiveness of the national public procurement and public procurement. For this purpose, it is necessary to establish supplier evaluation management and decision support process to allow a transparent supplier selection. In this paper, we present an evaluation method for transparent and objective public procurement. We also present a method for purchase decision support.

• International Journal of Quality Innovation
• /
• v.8 no.2
• /
• pp.20-31
• /
• 2007

Moral hazard and adverse selection often exist in asymmetric information environment. In this paper, quality investment decision problem is studied under moral hazard. A basic model for quality investment level decision is developed with the supplier as a principal and the buyer as an agent. And then we regard the supplier and the buyer's rational limitations to set up a model when the buyer's quality evaluation and processing activities are hidden. The model is optimized and the results under different backgrounds are discussed and compared. Results show that the buyer's quality evaluation level and processing level are mostly influenced by the supplier's quality assurance payment. Both the supplier and the buyer choose different quality investment levels under moral hazard because of the supplier's payment to the buyer in case of internal failure and external failure.

• Journal of Korean Society of Industrial and Systems Engineering
• /
• v.32 no.3
• /
• pp.142-158
• /
• 2009

The supplier selection problem is perhaps the most important component of the purchasing function. Some of the common and influential criteria in the selection of a supplier include quality, price, delivery, and service. These evaluation criteria often conflict, however, and it is frequently impossible to find a supplier that excels in all areas. In addition, some of the criteria are quantitative and some are qualitative. Thus, a methodology is needed that can capture both subjective and objective evaluation measures. The Analytic Hierarchy Process(AHP) is a decision-making method for ranking alternative courses of action when multiple criteria must be considered. This paper proposes the AHP-based approach which can structure the supplier selection process and the achievements-based procedure which can allocate order quantities for the selected suppliers In automotive part manufacturers. Also, through the practical case of 'D' automotive part manufacturing company, we shows that the proposed AHP based supplier selection approach and the achievements-based allocation procedure of order quantity can be successfully applied for supplier selection and order quantity allocation problems.

• IE interfaces
• /
• v.25 no.1
• /
• pp.52-63
• /
• 2012

Up-to-date enlargement of the scale of global outsourcing has brought about the need of systematic and efficient tools for competitive supplier discovery located in various areas. A web-based business supporting system, referred to as Excellent Manufacturer Scouting System(EMSS), is being developed to serve core business functions including supplier discovery, negotiation, and collaboration between overseas buyers and domestic suppliers throughout the process of supply chain formation. In this paper, a supplier assessment model devoted to evaluation of core manufacturing capability is proposed by targeting small and medium sized mold companies. The assessment model will eventually be loaded to EMSS. Even if many well-designed models for supplier assessment have been presented in literature, most of them limit the evaluation criteria to somewhat general information on a given supplier, such as cost, delivery time, quality, rather than core manufacturing capability itself. This research is pioneering work on supplier assessment from the viewpoint of manufacturability. The proposed assessment model classifies assessment indices into six criteria, which have been drawn by intensive survey and analysis of the mold industry. Actual assessment indices for each criterion are also presented along with an exemplary evaluation result.

• Journal of the Korea Society of Computer and Information
• /
• v.13 no.1
• /
• pp.261-272
• /
• 2008

The primary research objects of this study is to evaluate an importance of supplier selection factors as an index according the level of product standardization and to present the evaluation model for supplier selection. For this purpose, this study adopts the AHP method to calculate the importance of supplier selection factors. In this study 16 factors which affect on the supplier selection decision making are classified into three factors-product supply related factor, product related factor, management ability related factor. Results also indicate that standardized products are much more dealt by means of on-line compare to customized products. It means the buyer opportunities is potentially an increase in the amount of current supplier re-evaluation, which may lead to new suppliers being considered more often.

• Journal of Korean Society for Quality Management
• /
• v.37 no.4
• /
• pp.1-9
• /
• 2009

Supplier selection process is one of the most important arenas of production and logistics management for many companies. This study explores the application of the analytic network process (ANP) approach for the evaluation of suppliers based on several different evaluation criteria. The ANP approach in this study is capable of providing priorities of suppliers that capture network relationships among several evaluation criteria which are not independent. Therefore this study provides value to practitioners by providing a generic model for supplier selection. In addition, for researchers, it demonstrates further research possibilities for more complex decision making problems using ANP.

• Journal of the Korea Society of Computer and Information
• /
• v.12 no.4
• /
• pp.169-177
• /
• 2007

Competitive international business environment has forced many firms to focus on supply chain management to cope with highly increasing competition. Hence the supplier selection is the most important decision of a company. Because it has a direct effect on cost reduction and quality, profitability and flexibility improvement of a company, so the right supplier selection significantly affect on the organization's efficiency and effectiveness and competitiveness. The primary research objects of this study is to evaluate an importance of supplier selection factors as an index and to present the evaluation model for supplier selection. For this purpose, this study adopts the AHP method to calculate the importance of supplier selection factors. In this study, 16 factors which affect on the supplier selection decision making are classified into three factors-product supply related factor, product related factor, management ability related factor.

• Journal of Distribution Science
• /
• v.15 no.6
• /
• pp.37-46
• /
• 2017

Purpose - The paper aims to propose an optimization model for supporting the buyer-seller negotiations. We consider the price, quality, and delivery as evaluation criteria, also recognized as objectives for negotiation. Research design, data, and methodology - The methodology used in this paper involves the input-oriented DEA with the inverse optimization. Under the existence of several potential suppliers, the price would be considered to be the decision variable to conclude the negotiation so as to meet the desired level of the quality and delivery. The data set for six suppliers with three criteria is examined by the proposed approach. Results - We present the decision aid model by displaying the price spectrum as the changes of desired output levels. It overcomes the shortcomings from previous researches mainly based on the discrete types of scenario generations. This approach shows that the obtained results help the buyer understand the trade-offs between price and performance when he/she considers the negotiation. Conclusions - The paper contributes to the numerical models for buyer-supplier negotiation in that the model for the supplier evaluation and selection is closely linked with the model for negotiation. In addition, it eliminates the unrealistic negotiation strategy, and provides the negotiation strategies that the buyer would not shift the burden on suppliers by maintaining the current efficiency.