Supplier selection considering product structure and product life cycle cost

2016 ◽  
Vol 33 (5) ◽  
Author(s):  
Vahid Ebrahimipour ◽  
Babak Maleki Shoja ◽  
Shanling Li
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Supplier Selection ◽  
Product Life Cycle ◽  
Design Methodology ◽  
Evaluation Process ◽  
Product Structure ◽  
Selection Problem ◽  
Product Life ◽  
Supplier Selection Problem

Purpose Supplier selection is a complex decision that involves not only the consideration of unit purchasing cost but also product life-cycle cost (LCC), which affects the company’s after-sale costs over the life cycles of their products. Product structure and its impact on the supplier selection evaluation process are rarely investigated in the literature. Therefore, product structure for a multi-criteria multi-product supplier selection problem with uncertainty is considered. In the model, we address product structure, the competitive supply environment, diverse criteria, and standard requirements. The objective is to choose suppliers that minimize LCC and maximize the reliability of the finished products. Design/methodology/approach Our model provides straightforward representation of interrelationships among multi-objectives and analysis of tradeoffs among conflicting objectives affected by product structure. We illustrate our model by using real life data from lubrication systems in the offshore reliability data (OREDA) handbook. Sensitivity analysis is provided for the case study in which various scenarios that describe product structure, the uncertainties in purchasing prices, reliabilities of purchased components, machine down-time due to poor quality components, suppliers’ capacity and delivery times. Different priority ranking among objectives is also tested to examine the impact of each objective on the overall objective. Findings Our computational results are based on real data and would provide useful guidelines for the management in OEM to choose right suppliers. Originality/value Product structure and its impact on the supplier selection evaluation process are rarely investigated in the literature. Therefore, product structure for a multi-criteria multi-product supplier selection problem with uncertainty is considered.

scholarly journals Using a Product Life Cycle Cost Model to Solve Supplier Selection Problems in the High-Technology Company

2021 ◽  
Author(s):  
Tao Yu Jwo ◽  
Lin Yi Shyuan ◽  
Lee Hsuan Shih ◽  
Tu Chang Shu
Keyword(s):  
Life Cycle ◽  
Goal Programming ◽  
Life Cycle Cost ◽  
Supplier Selection ◽  
Product Life Cycle ◽  
Light Emitting Diode ◽  
Cost Model ◽  
High Technology ◽  
High Tech ◽  
Product Life

Using the PLCC advantages generates revenue and lowers costs more than might be anticipated. It ensures better decisions by using a more perfect and practical assessment of revenues and costs. Although the supplier selection (SC) product life cycle cost (SCPLCC) is an important consideration among corporations, SCPLCC problem has become associated with deciding how one supplier should be selected from possible alternatives. In this study, we applied two types of goal programming, multiobjective linear programming and revised multichoice goal programming to develop a PLCC-based concept to solve the SCPLCC problem and construct a decision-making tool for application to a case of supply chain management in a Taiwanese light-emitting diode company in the high-tech industry. Our study main contribution Company managers can easily use the two approaches of the SCPLCC model with different parameters to solve SCPLCC model problems. Finally, we comparing five models found RMCGP with weighted linear goal programming had an adequate effect for application to the PLCC concept for high-technology company; this cloud make company decision–makers focus on low PLCC and select better supplier.

scholarly journals Using a Product Life Cycle Cost Model to Solve Supplier Selection Problems in Sustainable Supply Chain

2021 ◽  
Author(s):  
Tao Yu Jwo ◽  
Lin Yi Shyuan ◽  
Lee Hsuan Shih ◽  
Tu Chang Shu
Keyword(s):  
Supply Chain ◽  
Life Cycle ◽  
Goal Programming ◽  
Life Cycle Cost ◽  
Supplier Selection ◽  
Product Life Cycle ◽  
Cost Model ◽  
High Tech ◽  
Sustainable Supply Chain ◽  
Product Life

Supplier selection (SC) continues to be a crucial component in manufacturing procurement. Using the PLCC advantages generates revenue and lowers costs more than might be anticipated. Supplier selection (SC) product life cycle cost (SCPLCC) is an important consideration among corporations, SCPLCC problem has become associated with deciding how one supplier should be selected from possible alternatives. Past literature on this topic is limited. We try to close this gap in knowledge. In this study, we attempt to apply two types of goal programming, multiobjective linear programming and revised multichoice goal programming to develop a PLCC-based concept to solve the SCPLCC problem and construct a decision-making tool for application to a case of supply chain management in a Taiwanese light-emitting diode company in the high-tech industry. Our study main contribution Company managers can easily use the two approaches of the SCPLCC model with different parameters to solve SCPLCC model problems. Finally, we are comparing five models found RMCGP with weighted linear goal programming had an adequate effect for application to the PLCC concept for high-technology Company; this cloud makes company decision–makers focus on low PLCC and select a better supplier in sustainable supply chains development.

scholarly journals A Product Life Cycle Cost Concept Model to Solve Supplier Selection Problems in the Supply Chain Management

2021 ◽  
Author(s):  
Tao Yu- Jwo ◽  
Lin Yi- Shyuan ◽  
Lee Hsuan- Shih ◽  
Tu Chang- Shu
Keyword(s):  
Supply Chain ◽  
Life Cycle ◽  
Supply Chain Management ◽  
Goal Programming ◽  
Life Cycle Cost ◽  
Supplier Selection ◽  
Product Life Cycle ◽  
High Tech ◽  
Chain Management ◽  
Product Life

Today’s purchasing companies demand an advanced buyer equal of enactment from their supplier while the two parties maintain a respectful connection. Although the supplier selection (SC) product life cycle cost (SCPLCC) is an important consideration among corporations, SCPLCC problem has become associated with deciding how one supplier should be selected from possible alternatives. In this study, we applied two types of goal programming, multiobjective linear programming and revised multichoice goal programming to develop a PLCC-based concept to solve the SCPLCC problem and construct a decision-making tool for application to a case of supply chain management in a Taiwanese light-emitting diode company in the high-tech industry. Our study main contribution Company managers can easily use the two approaches of the SCPLCC model with different parameters to solve SCPLCC model problems. Finally, we comparing five models found RMCGP with weighted linear goal programming had an adequate effect for application to the PLCC concept for high-technology comapny; this cloud make company decision–makers focus on low PLCC and select better supplier.

scholarly journals Using a Social Product Life Cycle Cost Model to Solve Supplier Selection in Sustainability Supply Chain

2021 ◽  
Author(s):  
Tao Yu Jwo ◽  
Lin Yi Shyuan ◽  
Lee Hsuan Shih ◽  
Tu Chang Shu
Keyword(s):  
Supply Chain ◽  
Life Cycle ◽  
Goal Programming ◽  
Life Cycle Cost ◽  
Supplier Selection ◽  
Product Life Cycle ◽  
Light Emitting Diode ◽  
Cost Model ◽  
High Tech ◽  
Product Life

Supplier selection (SC) product life cycle cost (SCPLCC) is an important consideration among corporations, SCPLCC problem has become associated with deciding how one supplier should be selected from possible alternatives. In this study, we applied two types of goal programming, multiobjective linear programming and revised multichoice goal programming to develop a PLCC-based concept to solve the SCPLCC problem and construct a decision-making tool for application to a case of supply chain management in a Taiwanese light-emitting diode company in the high-tech industry. Our study main contribution Company managers can easily use the two approaches of the SCPLCC model with different parameters to solve SCPLCC model problems. Finally, we comparing five models found RMCGP with weighted linear goal programming had an adequate effect for application to the PLCC concept for high-technology company; this cloud makes company decision–makers focus on low PLCC and select a better supplier in sustainable supply chains goal.

Applying Life Cycle Six Sigma in Tolerance Design Methodology

2012 ◽  
Vol 443-444 ◽  
pp. 881-887
Author(s):  
Jian Jun Wu ◽  
Yi Zhen Wang
Keyword(s):  
Life Cycle ◽  
Six Sigma ◽  
Life Cycle Cost ◽  
Product Life Cycle ◽  
Quality Characteristic ◽  
Quality Level ◽  
Manufacturing Cost ◽  
Tolerance Design ◽  
Product Life ◽  
Sigma Level

Setting of tolerances to meet a required specification of quality characteristic and keep low manufacturing cost is one of common problems in the process quality control. But generally traditional tolerance design only focus on cost of manufacturing, few consider product Life Cycle Cost. In these situations, to obtain a satisfactory six sigma quality level as well as keep lower life cycle total cost should be considered. This paper expands tolerance optimization based on the manufacturing cost to the product life cycle cost, which can improve product quality to the six sigma level and keep lower LCC simultaneously.

Life Cycle Cost Modeling of Pumps Using an Activity Based Costing Methodology

2010 ◽  
Author(s):  
Laxman Yadu Waghmode ◽  
Anil Dattatraya Sahasrabudhe
Keyword(s):  
Life Cycle ◽  
Life Cycle Cost ◽  
Product Life Cycle ◽  
Business Environment ◽  
Life Cycle Costing ◽  
Activity Based Costing ◽  
Global Business ◽  
Product Life ◽  
Traditional Costing ◽  
The Cost

In order to survive in today’s competitive global business environment, implementation of life cycle costing methodology with a greater emphasis on cost control could be one of the convincing approaches for the manufacturing firms. The product life cycle costing approach can help track and analyse the cost implications associated with each phase of product life cycle. Life cycle costing (LCC) practices with traditional costing methods may provide results that have a severe deviation from the real product LCC as it focuses on the cost of materials, labor and a low portion of overheads apportioned by the absorption rate to the product. Activity based costing (ABC) has emerged as one of the several innovative and more accurate costing methods in recent years. It is based on the principle that products or services consume activities and activities consume resources that generate costs. Thus, the ABC system focuses on calculating the costs incurred on performing the activities to manufacture a product. This paper presents a LCC modeling approach for estimating life cycle cost of pumps using activity based costing method. The study was conducted in a large pump manufacturing company from India that has significant global standing within its industry. Firstly, all the activities and cost drivers associated with the life cycle of a pump have been identified. A methodology for LCC analysis using ABC is then developed and it is applied to two different pumps manufactured by the same industry and the results obtained are presented.

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