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Strategic Selection and Management of Suppliers, and Allocation of Order Quantity for Supply Chain Management in Automotive Parts Manufacturers  

Jang, Gil-Sang (Department of Management Information System, University of Ulsan)
Kim, Jae-Kyun (School of industrial Engineering, University of Ulsan)
Publication Information
Journal of Korean Society of Industrial and Systems Engineering / v.32, no.3, 2009 , pp. 142-158 More about this Journal
Abstract
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.
Keywords
AHP; Supplier Selection Problem; Allocation Of Order Quantity; SCM;
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