• 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.

• Journal of the Korean Dietetic Association
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• v.8 no.1
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• pp.1-8
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• 2002

The purpose of this study is to clarify success factors for desirable relationship between buyer and supplier in elementary school. Therefore, the survey questionnaire consisted of general background, past success, success difference, buyer-supplier relationship characteristics(trust, supporting status, communication behavior, conflict resolution techniques, supplier selection process). The subjects were 66 dieticians of elementary school in Inchon. The statistical analysis of data was completed using SPSS program. The results were summarized as follows : Average total cost/day per one person ￦1,156. The number of suppliers per one school were 6. 92.3% of the subjects were in favor of private contract, regarding contract methods of purchasing food materials. For the past success, degree of satisfaction about past their supplier showed 3.49 score. The present success difference was shown higher than the past success. There was significant correlation between the past success and the present success difference. Trust about suppliers showed 3.40score. Supplying companies hardly support for buying school. Among information quality(timely, accurate, adequate, complete, credible), timely and complete showed lower score than the other kind of elements. Among the buyer-supplier relationship characteristic elements, only trust correlated with satisfaction about suppliers significantly. Among the conflict resolution techniques, joint problem solving and persuasive attempts were often made use of by subjects. The supplier selection criteria were shown quality(7.47), supplier's capabilities(6.46), management plan(6.00), price(5.73), scale(5.48), assets(5.27), considers delivery(4.76) and technology(2.39). As results, trust was needed for the desirable relationship between buyers and suppliers. This study has some limitations. The data in this study were collected from only buyer. It is more desired to acquire data from suppliers also.

• Proceedings of the Korean Operations and Management Science Society Conference
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• 2000.10a
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• pp.99-102
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• 2000

In the supply chain network design, how to select the best location, capacity configuration of the suppliers and to assign manufacturers orders are a challenging issue. Especially when multi-tiers'suppliers are existed, the performance of supply chain is influenced by 2$\^$nd/ and 3$\^$rd/ suppliers. Supplier selection is multi-criteria problem which includes both qualitative and quantitative factors in supply chains. In order to select the best supplier it is necessary to make a trade off between these two factors such as cost, product quality, capacity, production lead time, deliver lead time and transportation lead tine of supplier constraints existed in multi-tiers supplier purchasing chain. In these circumstances, purchasing agents should decide two problems: which is the best supplier in each tier and how much should be purchased from each selected supplier. This research is intended to develop an integration of an analytical hierarchy process (AHP) and mathematical modeling proposed to consider two factors which may be conflicted in choosing the best supplier in each tier and placing the optimum order quantities to the supplier among multi-tiers suppliers.

• 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.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 the Korea Society of Computer and Information
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• v.13 no.7
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• pp.239-246
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• 2008

The supplier selection has a direct effect on the organization's efficiency, effectiveness and competitiveness, so the right supplier selection is the most important decision of a company. In order to select the best suppliers, both qualitative and quantitative factors should be considered. To decide which suppliers are the best and how much should be purchased from each selected supplier, many models which considered a single objective and multiple objectives have been proposed. But they have problems in considering qualitative factors which are very important in supplier selection. So in this article an integration model of an analytical hierarchy process and linear programming is proposed to consider both qualitative and quantitative factors in choosing the best suppliers and placing the optimum order quantities among them. This integrated model can be applied effectively and easily any organization and management circumstances.

• 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.

• Industrial Engineering and Management Systems
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• v.11 no.2
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• pp.165-169
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• 2012

There has been a growing interest in firms' environmental sustainability activities to improve environmental practices in their supply chain. This study aims to deal with supplier evaluation of firm's green supply chain management (GSCM) criteria with incomplete information. Nevertheless, the suitable supplier is a key strategic direction in eliminating environmental impact on supply chain management for manufacturing firms. The firm's GSCM criteria and supplier selection need to be unified as a system to improve the firm's performance.

• The Journal of the Korea Contents Association
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• v.18 no.12
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• pp.291-298
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• 2018

Supplier selection for energy production facility is a multi-criteria decision-making problem and is of strategic importance for cost efficiency of synthetic fiber production company. The purpose of this paper is to present an approach to select best energy production facility for a synthetic fiber production company. Toward this, we derived criteria to evaluate the energy production facility and develop an Analytic Network Process model to help decision makers set priorities on multiple criteria while considering both qualitative and quantitative aspects of the problem. The application of the proposed approach indicates that it can be successfully applied to facilitate the decision making process for selecting the best supplier of the energy production facility.

• Journal of the Korean Dietetic Association
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• v.12 no.4
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• pp.329-341
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• 2006

The purposes of the study were to examine food purchasing management practices and to assess dietitians' awareness on food quality standards, use of food purchasing guidelines(food quality guidelines, supplier selection criteria), and organizational collaboration related to purchasing at school food service. A total of 400 dietitians working at elementary schools in Kyunggi Province were surveyed and 247 responses were returned. Excluding responses with significant missing data, 240 responses(60%) were used for data analysis. Compared to the previous reports, competitive bidding and shorter contract periods were preferred for purchasing food supplies. A dietitian, school staff, and food service staff participated in receiving and inspection together at 58.4% of the schools. An average score of the dietitians' awareness on the food quality standards was 3.28 based on a 5-point scale(1:strongly disagree, 5:strongly agree). Their awareness scores for the quality standards related to the genetically modified organism foods, organic foods, and pesticide residues were the lowest. The awareness scores increased significantly with their age(p<.001). In general, the food purchasing guidelines were used well at the schools ; the usage levels of the food quality guidelines and supplier selection criteria were significantly different by length of operation(p<.05) and dietitians' age(p<.05), respectively. The dietitians' perception score of the organizational collaboration related to purchasing was rated 3.46 and differed significantly by dietitians' educational background(p<.05). For improving food procurement management, standardized food quality and purchasing criteria need to be developed. As the demands on high quality food supplies increase for school food service, the dietitians should improve their knowledges on the food quality standards and implement effective and creative purchasing methods.