• Title/Summary/Keyword: supplier performance evaluation

Search Result 24, Processing Time 0.027 seconds

A Comparison Study on Supplier and Green Supplier Selection Problems using Fuzzy AHP and BSC (Fuzzy AHP와 BSC를 이용한 공급자와 그린 공급자 선정 문제의 비교 연구)

  • Seo, Kwang-Kyu
    • 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.

A Multi-Phase Decision Making Model for Supplier Selection Under Supply Risks (공급 리스크를 고려한 공급자 선정의 다단계 의사결정 모형)

  • Yoo, Jun-Su;Park, Yang-Byung
    • Journal of Korean Society of Industrial and Systems Engineering
    • /
    • v.40 no.4
    • /
    • pp.112-119
    • /
    • 2017
  • Selecting suppliers in the global supply chain is the very difficult and complicated decision making problem particularly due to the various types of supply risk in addition to the uncertain performance of the potential suppliers. This paper proposes a multi-phase decision making model for supplier selection under supply risks in global supply chains. In the first phase, the model suggests supplier selection solutions suitable to a given condition of decision making using a rule-based expert system. The expert system consists of a knowledge base of supplier selection solutions and an "if-then" rule-based inference engine. The knowledge base contains information about options and their consistency for seven characteristics of 20 supplier selection solutions chosen from articles published in SCIE journals since 2010. In the second phase, the model computes the potential suppliers' general performance indices using a technique for order preference by similarity to ideal solution (TOPSIS) based on their scores obtained by applying the suggested solutions. In the third phase, the model computes their risk indices using a TOPSIS based on their historical and predicted scores obtained by applying a risk evaluation algorithm. The evaluation algorithm deals with seven types of supply risk that significantly affect supplier's performance and eventually influence buyer's production plan. In the fourth phase, the model selects Pareto optimal suppliers based on their general performance and risk indices. An example demonstrates the implementation of the proposed model. The proposed model provides supply chain managers with a practical tool to effectively select best suppliers while considering supply risks as well as the general performance.

A Combined Fuzzy AHP and BSC Model based Green Supplier Selection Problem (Fuzzy AHP와 BSC 결합모델기반의 Green Supplier 선정 문제)

  • Seo, Kwang-Kyu
    • Journal of the Korea Safety Management & Science
    • /
    • v.13 no.3
    • /
    • pp.63-69
    • /
    • 2011
  • As environmental protection is becoming more and more important, green production has become a key issue for almost every manufacturer and will determine a manufacturer can be sustainable in the long term. Therefore a performance evaluation system for green suppliers is necessary to determine the suitability of suppliers to cooperate with the company. While the works on the evaluation and/or selection of suppliers are abundant, those that concern environmental issues are rather limited. The objective of this study is to construct a combined model based on fuzzy analytic hierarchy process (FAHP) and balanced scorecard (ESC) for evaluating green suppliers in the manufacturing industry. The ESC concept is applied to define the hierarchy with four major perspectives (i.e. financial, customer, internal business process, and learning and growth), and performance indicators are selected for each perspective. FAHP is then proposed in order to tolerate vagueness and ambiguity of information. Finally, FAHP is finally constructed to facilitate the solving process. With the proposed model, manufacturers can have a better understanding of the capabilities that a green supplier must possess and can evaluate and select the most suitable green supplier for cooperation.

An intelligent approach for managing suppliers in SCM using neural networks (SCM에서의 공급자 관리를 위한 신경망을 이용한 지능적 방법)

  • Han Hyeon Su;Lee Yeong Hae;Jo Min Gwan
    • Proceedings of the Korean Operations and Management Science Society Conference
    • /
    • 2003.05a
    • /
    • pp.258-261
    • /
    • 2003
  • The purpose of this study is designing intelligent supplier management system with selected criteria for monitoring and evaluating suppliers by the information As suppliers keep changing their performance continuously according to the environment and with the passage or time. Companies need to monitor suppliers' condition continuously and choose the suitable action. This study considers a framework or supply chain management system usuig neural networks for ongoing partnership with criteria of supplier performance. The intelligent supplier management system that this study suggests ran offer the supplier evaluation criteria for monitoring and more efficient supply chain management ran be expected for cost reduction or supply chain management with this system.

  • PDF

Optimization-Based Buyer-Supplier Price Negotiation: Supporting Buyer's Scenarios with Suppler Selection

  • Lee, Pyoungsoo;Jeon, Dong-Han;Seo, Yong-Won
    • 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.

Evaluation of Quantity Discounts for Buyer's Stocking Risk

  • Shin, Ho-Jung;Benton, W.C.;Park, Soo-Hoon
    • Management Science and Financial Engineering
    • /
    • v.16 no.3
    • /
    • pp.21-47
    • /
    • 2010
  • Quantity discounts provide a practical foundation for supply chain inventory policies, improving the supplier's profit and reducing the buyer's inventory cost simultaneously. Traditional quantity-discount research, which deals with inventory coordination between a buyer and a supplier, is extended to a stationary stochastic environment. This research shows that the magnitude of the optimal discounts scheduled by the deterministic quantity discount models may not be large enough to cover the buyer's additional inventory stocking risks under uncertain conditions. As a result, the buyer's total inventory cost may often increase rather than decrease. In contrast, the proposed model allows the supplier to identify the discount level, which shares the buyer's amplified risk associated with temporary overstocking and ensures that both buyer and supplier benefit economically. The performance of the proposed model was tested in the continuous review environments via numerical experiments. The experimental results support the proposed method as a feasible alternative in coordinating inventory decisions under stochastic demand.

Evaluating Green Supply Chain Management with Incomplete Information

  • Tseng, Ming-Lang;Lin, Ru-Jen;Chiu, Anthony Shun Fung
    • Industrial Engineering and Management Systems
    • /
    • v.11 no.2
    • /
    • pp.165-169
    • /
    • 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.

Based on ISO Requirements for Sustainability Management Establishment of Evaluation Model for Supplier _ Only for Semiconductor Processes (지속가능경영을 위한 ISO 요구사항 기반 정량적 협력업체 평가모델 구축 _반도체 공정에 한하여)

  • Yu, Je-Young;Lee, Ik-Mo;Hwang, Yong-Woo;Kim, Young-Woon
    • Journal of the Korea Safety Management & Science
    • /
    • v.21 no.2
    • /
    • pp.25-42
    • /
    • 2019
  • The government announced that it would ask the contractors not only the supplier but also the contractors to take the same responsibilities if they did not observe industrial accident safety measures from 2019. The semiconductor manufacturing process belongs to the representative disaster industry group in which the facility is directly located inside a closed space called clean room. According to previous studies, the semiconductor industry group used checklists for safety management of their suppliers. This study has developed a model for assessing suppliers by constructing a quantitative checklist item through the risk assessment methodology, laws and regulations. The evaluation model of the supplier set up through this study becomes the safety management standard in the semiconductor industry. Furthermore, it is applied to the partner companies in the operation of ISO 14001, 45001, I would like to apply it as a measure of performance management for CSR (Corporate Social Responsibility).

A Quality Measure for Supplier Selection (공급자선정을 위한 품질척도)

  • 변재현
    • Journal of Korean Society for Quality Management
    • /
    • v.26 no.1
    • /
    • pp.1-10
    • /
    • 1998
  • Su, pp.ier quality plays a major role in the evaluation of su, pp.iers, making it very necessary to develop a proper quality measure useful in selecting su, pp.iers that is able to meet quality specification of the customer. In this paper, we present a measure of the overall quality performance which is a weighted geometric mean of the process capability indices of the quality characteristics of a su, pp.ier. This measure can be used both as a measure of su, pp.ier selection for the customer and as a measure for the self-analysis of the quality performance for the su, pp.ier.

  • PDF

Purchasing Status and Supplier Performance Evaluation of School Foodservice in Chanwon, Korea (창원시 학교급식 식재료 구매 실태 및 공급업체 수행도 평가)

  • Jung, Hoi-Jung;Kim, Hyun-Ah
    • Journal of the Korean Society of Food Science and Nutrition
    • /
    • v.41 no.6
    • /
    • pp.861-869
    • /
    • 2012
  • This study was conducted to investigate the purchasing status and to compare supplier performance evaluations between competitive bidding and negotiated contracts in school foodservice in Changwon, Korea. A total of 190 questionnaires were distributed and 167 (return rate 87.9%) were collected from June 29 to September 28, 2010, and then a total of 151 (analysis rate 79.5%) were used for the final analysis. First, 91.4% of food product purchases for school meals were contracted through competitive bidding, especially limited competitive bidding. It mainly consisted of agricultural products, processed food, and eco-friendly agricultural products (fruit). Second, 78.8% of schools purchased food products by negotiated contracts, while single negotiation accounted for 59.7%. Food products by negotiated contract consisted of meat, kimchi, and fish. Third, the purchase status of competitive bidding and negotiated contracts showed a significant difference in agricultural products (p<0.001), fish (p<0.001), meats (p<0.001), poultry (p<0.001), antibiotic-free poultry (p<0.001), eco-friendly grain (p<0.001), eco-friendly agricultural products (fruit) (p<0.001), eco-friendly processed food (p<0.001), processed products (p<0.001), milk (p<0.001) and general grain (p<0.001) except for kimchi. Fourth, comparative analysis of supplier performance evaluation (on a 5-point Likert scale) of school foodservice showed that price of product of competitive bidding (3.73) was significantly higher than that of negotiated contract (2.95) (p<0.001), and the overall performance level of the negotiated contract (3.85) was significantly higher than that of competitive bidding (3.61) (p<0.01). The supplier performance evaluation levels of product packaging (p<0.01), product quality at the time of delivery (p<0.001), hygiene of products (p<0.001), consistency to specification (p<0.001), swiftness of return and exchange (p<0.001), emergency delivery (p<0.001), service of delivery staff (p<0.05), and handling of complaints (p<0.001) of negotiated contracts were significantly higher than those of competitive bidding of school foodservice. In conclusion, school foodservice selected food suppliers both by adopting competitive bidding and negotiated contracts. And there was a significant difference of school foodservice supplier performance between competitive bidding and negotiated contracts in Changwon, Korea.