An integrated supplier selection approach incorporating decision maker’s risk attitude using ANN, AHP and TOPSIS methods

Kybernetes ◽  
2019 ◽  
Vol 49 (9) ◽  
pp. 2263-2284 ◽  
Author(s):  
Chunxia Yu ◽  
Zhiqin Zou ◽  
Yifan Shao ◽  
Fengli Zhang

Purpose The purpose of this paper is to develop a novel integrated supplier selection approach incorporating decision maker’s risk attitude using the artificial neural network (ANN), analytic hierarchy process (AHP) and technique for order of preference by similarity to ideal solution (TOPSIS) methods. Design/methodology/approach In the proposed approach, the ANN model is used to classify decision maker’s risk attitude; the fuzzy AHP method is used to determine the relative weights of evaluation criteria; and the fuzzy TOPSIS method is used to evaluate ratings of suppliers. Finally, experiments are conducted to verify the feasibility and efficiency of the proposed integrated approach. Findings Experiments results show that the proposed integrated approach is effective and efficient to help decision makers to select suitable suppliers according to their risk attitudes. Originality/value The aim of this paper is to develop a novel integrated supplier selection approach incorporating decision maker’s risk attitude using the ANN, AHP and TOPSIS methods. The decision maker’s risk attitude toward procurement transaction is originally considered in supplier selection process.

Kybernetes ◽  
2016 ◽  
Vol 45 (3) ◽  
pp. 474-489 ◽  
Author(s):  
Moloud sadat Asgari ◽  
Abbas Abbasi ◽  
Moslem Alimohamadlou

Purpose – In the contemporary global market, supplier selection represents a crucial process for enhancing firms’ competitiveness. This is a multi-criteria decision-making problem that involves consideration of multiple criteria. Therefore this requires reliable methods to select the best suppliers. The purpose of this paper is to examine and propose appropriate method for selecting suppliers. Design/methodology/approach – ANFIS and fuzzy analytic hierarchy process-fuzzy goal programming (FAHP-FGP) are new methods for evaluating and selecting the best suppliers. These methods are used in this study for evaluating suppliers of dairy industries and the results obtained from methods are compared by performance measures such as Mean Squared Error, Root Mean Squared Error, Normalized Root Men Squared Error, Mean Absolute Error, Normalized Root Men Squared Error, Minimum Absolute Error and R2. Findings – The results indicate that the ANFIS method provides better performance compared to the FAHP-FGP method in terms of the selected suppliers scoring higher in all the performance measures. Practical implications – The proposed method could help companies select the best supplier, by avoiding the influence of personal judgment. Originality/value – This study uses the well-structured method of the fuzzy Delphi in order to determine the supplier evaluation criteria as well as the most recent ANFIS and FAHP-FGP methods for supplier selection. In addition, unlike most other studies, it performs the selection process among all available suppliers.


2021 ◽  
Author(s):  
Sema Kayapinar Kaya ◽  
Ejder Aycin

Abstract Supply chain has a very extensive and dynamic structure that incorporates new business models, new customer expectations, market searches and technological developments. With the introduction of Industry 4.0 into supply chain, a rapid and intensive process of digitalization begin to transform every step of supply chain. Supply chain selection is one of the essential decisions in reducing the supply chain cost and improving overall quality of product and services. With the implication of digital technologies and Industry 4.0 on supply chain, the supplier selection process has been significantly changed during the recent years. Companies are willing to need new requirements for their own suppliers in accordance with Industry 4.0 implementations and technologies. This paper aims to identify key criteria to Industry 4.0 technologies and evaluate them to select the right suppliers selection in the era of Industry 4.0 Within the scope of this study attempts to develop an integrated Interval Type 2 Fuzzy AHP and GOPRAS-G methodology to select the appropriate supplier in the face of Industry 4.0 implementations. For this purpose, Interval Type 2 Fuzzy AHP was employed to weight the supplier evaluation criteria and then, Grey COPRAS method has been applied to prioritize suppliers. This paper is to provide practitioners and researchers with insight into how Industry 4.0 strategies influence on supplier selection.


2019 ◽  
Vol 11 (6) ◽  
pp. 1533 ◽  
Author(s):  
Lizhong Tong ◽  
Zhongmin Pu ◽  
Jizheng Ma

Chemical industry plays a pivotal role in the economy in every country. As chemical hazardous materials are usually characterized as inflammable, explosive, toxic, corrosive, and carcinogenic, if accidents happen in chemical company it can lead to irreversible environmental and health damage to the public. The chemical industry attaches great importance to safe production, technical professionalism, and service standardization. Nowadays, under the trend of equipment maintenance service outsourcing in chemical companies, the selection of maintenance suppliers with safe and sustainable records come first and foremost in the supplier selection process. However, these concerns from the chemical industry are currently inadequately addressed by most general supplier selection models. Therefore, this paper proposes an applicable methodology for selecting and evaluating equipment maintenance suppliers in the chemical industry, compatible with a safe and sustainable production context. To achieve the goal of “safe operation and sustainable development in the future”, we established an evaluation criteria framework for equipment maintenance suppliers by combining the general supplier selection criteria and safe production characteristics together. Eight main criteria and 24 sub-criteria based on market acceptance, resource conditions, and safe production were included. Then a fuzzy TOPSIS model was presented to select the best equipment maintenance service supplier. Finally, by analyzing a case in W petrochemical company, the empirical results indicate that the proposed framework is of great practical value to select and evaluate equipment maintenance suppliers for safety and sustainable development in the chemical industry.


2020 ◽  
Vol 14 (1) ◽  
pp. 40-58 ◽  
Author(s):  
Zeki Ayağ ◽  
Funda Samanlioglu

Purpose Since the demand for energy has dramatically increased in the countries which have fast-growing population and economy, they have faced with a critical problem of how to evaluate a set of potential energy sources (i.e. nuclear, natural gas, bio, geothermal, hydro, wind and solar) and choose the ultimate energy source for their needs. On the other hand, this critical problem turns into a multiple-criteria decision-making (MCDM) in the presence of a set of energy source alternatives and evaluation criteria. In literature, there are many MCDM methods introduced to solve for different kinds of problems. The purpose of this paper is to present an integrated approach for evaluating energy sources using fuzzy AHP and GRA, with a case for Turkey. Design/methodology/approach In this paper, the analytic hierarchy process (AHP) and grey relational analysis (GRA) methods are used because of their advantages for similar problems. On the other hand, due to the fact that the conventional AHP by a nine-point scale and GRA method using a scale with crisp values can be unable to handle to capture the right judgments of a decision-maker(s), to reflect the vagueness and uncertainty on the judgments of a decision-maker, the fuzzy logic is integrated with the AHP and GRA. Findings The contributions of the paper to the literature are given in two dimensions as follows: it presents an integrated approach for complex decision processes with subjective data or vague information; the proposed approach, the fuzzy AHP-GRA method for energy source selection, is unique for the related problem in literature. The results of the proposed model from the case of Turkey will help practitioners and experts of how to apply it to the similar problems in the field of energy management. Research limitations/implications In short, in this paper, an integrated approach is proposed through the fuzzy AHP and the fuzzy GRA methods. As the fuzzy AHP is used to determine the weights of evaluation criteria, the fuzzy GRA is used to rank energy source alternatives. Practical implications In addition, a case study for Turkey is presented to show the applicability of the proposed approach for potential practitioners who are authority in the field of energy in public and private sectors. Social implications On the other hand, the proposed approach, the fuzzy AHP-GRA for energy source selection can also be an intelligent tool for public and private energy companies in Turkey, as well as others in the world. Originality/value On the other hand, in this paper, to the best of the authors’ knowledge, the study contributes to the literature that the first time, they use the fuzzy alpha-cut AHP and GRA in fuzzy environment for energy source evaluation problem.


2015 ◽  
Vol 22 (6) ◽  
pp. 1158-1174 ◽  
Author(s):  
Vinod Yadav ◽  
Milind Kumar Sharma

Purpose – The purpose of this paper is to propose a multi-criteria supplier selection model using fuzzy analytical hierarchy process (FAHP) approach for a leading automobile company in India. Design/methodology/approach – FAHP approach followed by a sensitivity analysis has been used. Findings – In this study, a FAHP-based supplier selection model is proposed to provide useful insights in choosing appropriate suppliers in dynamic situations in order to enhance long-term relationship with them. Practical implications – This study proposes a supplier selection model for an automobile industry which often faces heterogeneous supply environments. This model may have a high acceptability where a large number of suppliers are available to supply the materials or provide the services. As analytic hierarchy process is the most widely used methodology for supplier selection, however, it becomes less efficient in case of inconsistencies observed in the data. However a FAHP-based approach may overcome this difficulty. Originality/value – It contributes to supplier selection process and points out the importance of supplier selection problem, especially in the context of multi-criteria decision-making in Indian scenario.


Kybernetes ◽  
2019 ◽  
Vol 48 (8) ◽  
pp. 1782-1805 ◽  
Author(s):  
Chunxia Yu ◽  
Wenfan Zhao ◽  
Ming Li

Purpose Due to the increasing awareness of environmental and social issues, many practitioners and researchers have paid attention to sustainable supply chain management. As the performance of suppliers determines the success of supply chains, sustainable supplier selection becomes more and more important. Existing sustainable supplier selection models evaluated the sustainability of suppliers in three aspects (economic, environmental and social) and assumed that values on different criteria can completely compensate for each other directly. However, in reality, criteria in economic, environmental and social aspects are heterogeneous, and the decision-maker’s preferences on criteria belonging to different aspects are different. In this case, values on criteria belonging to different aspects are not allowed to completely compensate for each other directly. To solve this problem, this paper aims to propose a hybrid sustainable supplier selection approach integrating compensatory and non-compensatory decision rules. Design/methodology/approach In the proposed approach, the compensatory decision method Technique for Order of Preference by Similarity to Ideal Solution is used to evaluate performances of suppliers with respect to economic, environmental and social aspects. The non-compensatory decision method Elimination and Choice Translating Reality is used to evaluate performances of suppliers on sustainable criteria comprehensively. Through the proposed approach, only criteria belonging to the same aspects are allowed to compensate for each other directly. Finally, experimental results show that the proposed integrated approach is effective and efficient to help the decision-maker select optimal sustainable suppliers. Findings This is an original approach that integrates compensatory and non-compensatory decision rules, which can benefit from the two kinds of decision rules simultaneously. The integrated approach can be used as an aid for companies to select the best sustainable suppliers. Originality/value This paper presents an original integrated sustainable supplier selection approach using both compensatory and non-compensatory methods. It can benefit from the advantages of both compensatory and non-compensatory methods. The proposed approach can express preferences of the decision-maker on sustainable criteria sufficiently and maximize economic benefits while meeting environmental needs.


2016 ◽  
Vol 33 (05) ◽  
pp. 1650033 ◽  
Author(s):  
Dilip Kumar Sen ◽  
Saurav Datta ◽  
Siba Sankar Mahapatra

A novel decision support framework has been proposed herein to solve supplier selection problems by considering green as well as resiliency criteria, simultaneously. In this work subjectivity of evaluation criteria has been tackled by exploring fuzzy set theory. A dominance based approach has been conceptualized which is basically a simplified version of TODIM. Application potential of the proposed dominance based fuzzy decision making approach has been compared to that of fuzzy-TOPSIS, fuzzy-VIKOR and also fuzzy-TODIM. The concept of a unique performance index, i.e. “g-resilient” index has been introduced here to help in assessing suppliers’ performance and thereby selecting the best candidate. The work has also been extended to identify the areas in which suppliers are lagging; these seek further improvement towards g-resilient suppliers’ performance to be boosted up to the desired level.


2015 ◽  
Vol 25 (3) ◽  
pp. 413-423 ◽  
Author(s):  
S.E. Omosigho ◽  
Dickson Omorogbe

Supplier selection is an important component of supply chain management in today?s global competitive environment. Hence, the evaluation and selection of suppliers have received considerable attention in the literature. Many attributes of suppliers, other than cost, are considered in the evaluation and selection process. Therefore, the process of evaluation and selection of suppliers is a multi-criteria decision making process. The methodology adopted to solve the supplier selection problem is intuitionistic fuzzy TOPSIS (Technique for Order Preference by Similarity to the Ideal Solution). Generally, TOPSIS is based on the concept of minimum distance from the positive ideal solution and maximum distance from the negative ideal solution. We examine the deficiencies of using only one metric function in TOPSIS and propose the use of spherical metric function in addition to the commonly used metric functions. For empirical supplier selection problems, more than one metric function should be used.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Alex Moysés Barbanti ◽  
Rosley Anholon ◽  
Izabela Simon Rampasso ◽  
Vitor William Batista Martins ◽  
Osvaldo Luiz Gonçalves Quelhas ◽  
...  

Purpose This paper aims to evaluate the adoption of sustainable procurement practices adopted by Brazilian manufacturing companies in supplier selection; additionally, it is aimed to understand which of these practices enable a better differentiation of the analysed companies. Design/methodology/approach A systematic literature review was performed to compose the theoretical base of this research. In addition, a detailed study of ISO 20400 standard was conducted. The guidelines of ISO 20400 were used as a base to structure a questionnaire used in a survey with professionals working in procurement sphere of manufacturing companies in Brazil. The data were analysed via frequency and CRITIC (Criteria Importance Through Intercriteria Correlation) method. Findings A moderate dispersion in the adoption level of sustainable procurement practices in supplier selection process of the manufacturing companies was observed; in practices associated with social aspects, the dispersion is greater. A negative issue to be highlighted is that almost 20% of analysed companies did not even considered in their supplier selection process if their candidates accomplish philanthropic activities, generate jobs in local community and fulfill the Universal Declaration of Human Rights of United Nations (UN). Those two last practices are the ones with the best capacity to differ the companies in the sample. Originality/value There are few studies that focuses on understanding the adoption of sustainable procurement practices in manufacturing companies' supplier selection process. The main contribution of this study to the literature is to evidence that social requirements in supplier selection process are considered in a clear and well-structured form only by few Brazilian manufacturing companies. Despite the sample size, companies analysed in this research are prominent organisations in manufacturing sector. Thus, if this situation occurs in these companies, a more critical scenario will be evidenced in other organisations. This study has implication for practice and academy. For companies' managers, information present here can be used to debate the theme in the organisational context and the nine practices and scale can be used to perform a critical analysis of company's practices. For researchers, the information present here can be used as starting point for futures studies.


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