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

• The Journal of Information Systems
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• v.13 no.2
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• pp.49-64
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• 2004

Recently, SCM(Supply Chain Management) embraces the dynamic environmental changes of the participatory bodies in supply chain. Under this dynamic SCM environment, the selection of supplier and outsourcing company is very important. In their selection, the productivity and expertise of suppliers and outsourcing companies are, of course, to be considered as important factors, but whether or nottheycanmeettheduedateisacritical factor. In particular, this is true because an order-based manufacture ought to have CTP(Capable To Promise). For this purpose, by capitalizing onthevirtualmanufactureundertheSCM, this paper has tried to suggest a new agent system for the selection of supplier and outsourcing company. While performing virtual manufacture based on the integration scheduling, this system acquires the production environment and scheduling information of both suppliers and outsourcing companies on a real-timebasis,thusmakingintegrationschedulingpossible. Also, in order to provetheviabilityofthisstudy,thispaper has selected a specific domain and applied it.

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

• Industrial Engineering and Management Systems
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• v.11 no.1
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• pp.1-10
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• 2012

Supplier selection is an essential task within the purchasing function of supply chain management because it provides companies with opportunities to reduce various costs and realize stable and reliable production. However, many companies find it difficult to determine which suppliers should be targeted as each of them has varying strengths and weaknesses in performance which require careful screening by the purchaser. Moreover, information required to assess suppliers is not known precisely and typically fuzzy in nature. In this paper, therefore, fuzzy multi-objective linear programming (fuzzy MOLP) is presented under fuzzy goals: cost minimization, service level maximization and purchasing risk. To solve the problem, we introduce an enhanced two-phase approach of fuzzy linear programming for the supplier selection. In formulated problem, Analytical Hierarchy Process (AHP) is used to determine the weights of criteria, and Taguchi Loss Function is employed to quantify purchasing risk. Finally, we provide a set of alternative solution which enables decision maker (DM) to select the best compromise solution based on his/her preference. Numerical experiment is provided to demonstrate our approach.

• Journal of Intelligence and Information Systems
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• v.10 no.1
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• pp.13-25
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• 2004

In the online shopping environment, consumers suffer from the process of selecting an optimal supplier. Although comparison shopping agent-based web sites and consumers' online community sites support the selection process, they have limitations when considering diverse and dynamic purchase conditions as a whole, which is the cause of additional consumer effort for optimal supplier selection. This study provides a decision support model with a sensitivity analysis for selecting an optimal supplier considering purchase conditions as a whole. It screens suppliers with filtering factors and provides optimal suppliers through a sensitivity analysis from a Quadratic Programming model. We implemented a prototype system and showed that it could be an effective decision support system for selecting the optimal supplier in the online shopping environment.

• Journal of the Korea Safety Management & Science
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• v.6 no.2
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• pp.167-178
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• 2004

Supply chain management and e-procurement system built in the company, are set goal of internal process improvement. This paper show how SLV(Supplier Lifetime Value) can be used to structure the supplier in automotive part manufacturer, the method of selection is described and a detailed example of how SLV can be used and allocation of order Quantity for the selected suppliers also are provided, and aims at giving a method to realization profitable supplier relation using search for SL V system development which is making corporation with supplier, in the favor of decision supplier.

• Korean Management Science Review
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• v.14 no.2
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• pp.1-17
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• 1997

Many companies in these days have pursued an outsourcing policy to survive in a highly competitive world market. To effectively deal with the outsourcing policy, it is required that the companies have a useful method to rationally evaluate a supplier's performance from a viewpoint of a company's strategy and in a comparative-integrated manner. In this paper, we examined the relative importance of supplier selection criteria for a company's strategy by conducting a survey and proposed "Technique for Order Preference by Similarity to Ideal Solution(TOPSIS)" as one of the plausible techniques to evaluate a supplier's total performance. A hypothetical case study is presented to demonstrate the applicability of the method.

• Industrial Engineering and Management Systems
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• v.13 no.1
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• pp.29-42
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• 2014

Extensive research has been conducted on supplier evaluation and selection as a strategic and crucial component of supply chain management in recent years. However, few articles in the previous literature have been dedicated to the use of fuzzy inference systems as an aid in decision-making. Therefore, this essay attempts to demonstrate the application of this method in evaluating suppliers, based on a comprehensive framework of qualitative and quantitative factors besides the effect of gradual coverage distance. The purpose of this study is to investigate the applicability of the numerous measures and metrics in a multi-objective optimization problem of the supply chain network design with the aim of managing the allocation of orders by coordinating the production lines to satisfy customers' demand. This work presents a dynamic non-linear programming model that examines the important aspects of the strategic planning of the manufacturing in supply chain. The effectiveness of the configured network is illustrated using a sample, following which an exact method is used to solve this multi-objective problem and confirm the validity of the model, and finally the results will be discussed and analyzed.

• Proceedings of the Safety Management and Science Conference
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• 2003.11a
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• pp.113-116
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• 2003

In the recent environment of globalization where fierce competitions exist between manufacturers, SRM(Supplier Relationship Management) plays important role in the strategies of companies, and managements of companies try their best efforts in establishing the strategy to accomplish the innovative relationship between supply chain channels. The structure of the partnerships we develop with not only customers but also suppliers will in many cases determine the degree of success of the relationship. A successful partnership provides an opportunity for shared risk while maximizing the opportunity for mutual success whether it's with supplier. To follow this paper show how SLV(Supplier Lifetime Value) can be used to structure the supplier in automotive part manufacturer, This method of selection is described, and a detailed example of how SLY can be used and allocation of order quantity for the selected suppliers also are provided.

• The Korean Journal of Food And Nutrition
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• v.20 no.2
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• pp.226-239
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• 2007

The purpose of this study was to identify the problems related to the purchasing processes of school foodservices that should be corrected for the food service safety, by examining the purchasing processes and the status of supplier selection. A questionnaire was given to 300 dietitians working at self-operated food services. Ninety-eight responses, excluding incomplete answers, were used for the statistical analysis. The survey consisted of three parts: the general characteristics of the school foodservice and dietitian, purchasing processes and supplier selection, and the purchase specifications. We found that 84% of the contract was made by informal purchasing, and the contract period was 6 months or one year. For supplier selection, problems related to the document screening systems were the superficiality of the content(45.7%) and the absence or lack of clarity of the appraisal criteria(34.8%). The important factors for the facility and equipment standards of suppliers were included unclear evaluation methods for content(41.1%) and inappropriate appraisal lists(21.1%), while unclear evaluation methods for content(41.9%) and absence or lack of clarity of the appraisal criteria(20.4%) were the problems pertaining to the supplier evaluation checklist. When using the Food Labeling Standards to select suppliers, confirmation of the sell-by date and the storage method had the highest score at 3.85 out of 5. For supplier selection, only 25% of the contract was made by using the purchase specifications. The levels of satisfaction of with Kimchi and rice cakes suppliers were significantly different according to employment type and educational background, respectively. Depending on working experiences, satisfaction was significantly different for the use of document screening, as a standard for the selection and management of suppliers, and for the facility and equipment standards of suppliers, The use of purchase specifications was different by employment type, while the use of purchase specifications for contracts was different by working experience. These results imply that the specialization of suppliers is necessary to unsure food safety. Therefore, the objective methods to evaluate the suppliers should be developed by the government, and appropriate education programs for dietitians should be prepared to enhance the utilization of purchase specifications.