scholarly journals A Multi-Criteria Decision-Making (MCDM) Approach Using Hybrid SCOR Metrics, AHP, and TOPSIS for Supplier Evaluation and Selection in the Gas and Oil Industry

Processes ◽  
2018 ◽  
Vol 6 (12) ◽  
pp. 252 ◽  
Author(s):  
Chia-Nan Wang ◽  
Ying-Fang Huang ◽  
I-Fang Cheng ◽  
Van Nguyen
Keyword(s):  
Decision Making ◽  
Supplier Selection ◽  
Raw Materials ◽  
Oil Industry ◽  
Supplier Evaluation ◽  
Multi Criteria Decision Making ◽  
Analytic Hierarchy ◽  
Ahp Model ◽  
Decision Making Unit ◽  
Stability And Accuracy

Suppliers are extremely important in business operations. The supplier ensures the supply of materials, raw materials, commodities, etc. in sufficient quantity, quality, stability, and accuracy to meet the requirements of production and business with low costs and on-time deliveries. Therefore, selecting and managing good suppliers is a prerequisite for organizing the production of quality products as desired, according to the schedule, and with reasonable prices and competitiveness in the market. It is also important to gain the support of suppliers in order to continue to improve and achieve more as a business. The evaluation and selection of a supplier is a Multi-Criteria Decision-Making (MCDM) issue, in which the decision-maker is faced with both qualitative and quantitative factors. In this research, the authors propose an MCDM model using a hybrid of Supply Chain Operations Reference metrics (SCOR metrics), the Analytic Hierarchy Process (AHP) model, and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) approach for supplier evaluation and selection in the gas and oil industry. Using literature reviews on SCOR metrics, all criteria that impact supplier selection are defined in the first stage, the AHP model is applied to determine the weight of each factor in the second stage, and the optimal supplier is presented in final stage using the TOPSIS model. As a result, Decision-Making Unit 5 (DMU-05) is found to be the best supplier for the gas and oil industry in this research. The contribution of this work is to propose a new hybrid MCDM model for supplier selection in the gas and oil industry. This research also introduces a useful tool for supplier selection in other industries.

AN EVALUATION OF MARINE GEOSPATIAL DATA INFRASTRUCTURE (MGDI) BY DELPHI-ANALYTIC HIERARCHY PROCESS (AHP) APPROACH

2016 ◽  
Vol 78 (6-12) ◽  
Author(s):  
Isa Adekunle Hamid-Mosaku ◽  
Mohd Razali Mahmud ◽  
Mohd Safie Mohd
Keyword(s):  
Decision Making ◽  
Analytic Hierarchy Process ◽  
Spatial Data ◽  
Geospatial Data ◽  
Multi Criteria Decision Making ◽  
Analytic Hierarchy ◽  
Data Infrastructure ◽  
Ahp Model ◽  
Multi Criteria Evaluation ◽  
Hierarchy Process

Decision makings in the contexts of Spatial Data Infrastructure (SDI) and Marine Geospatial Data Infrastructure (MGDI) are recently gaining attention in SDI literatures. Both initiatives are multi-dynamic and complex in nature, thus exhibiting multi-criteria decision-making (MCDM) problems. Yet, there is dearth of multi-criteria evaluation (MCE) decision making framework. In this paper, major criteria for enhanced decisions about MGDI implementations are evaluated. These criteria sourced from literature, further adjudged through Delphi experts group evaluations till consensus was reached on seven criteria. Thereafter, pilot surveys for criteria weightage and ranking based on Analytic Hierarchy Process (AHP) model were carried out, with respondents from marine stakeholders in Malaysia. Results obtained were assessed and compared with scoring procedure; Data and Information had the highest percentage while Social criterion is the least ranked. The significance of these criteria in enhancing MGDI decision for numerous marine activities among the stakeholders are therefore highlighted through this study.

scholarly journals Multi-criteria decision making for supplier selection: a literature critique

2021 ◽  
Vol 12 (1) ◽  
pp. 329-352
Author(s):  
Hayk Manucharyan
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Supplier Selection ◽  
Future Research ◽  
Multi Criteria Decision Making ◽  
Analytic Hierarchy ◽  
Chain Management ◽  
Decision Making Processes ◽  
Aid Decision

In contemporary supply chain management, a company’s performance is largely dependent on its strategic choice of suppliers. The complexity of supplier evaluation and selection is driving the development of novel support techniques and their integration into multi-criteria decision-making processes. This review identifies the most prevalent approaches in the supply chain management literature (1998–2018), analyzes the strengths and weaknesses of these approaches, and discusses the most popular supplier selection attributes. The non-conventional, emerging methods in domain literature are also discussed, and future research directions are proposed. Supplier selection approaches are classified into individual, integrated, and non-conventional approaches. To overcome the limitations associated with these tools when used individually, most of the published works have used integrated techniques, among which integrated fuzzy and analytic hierarchy process methods are most popular. We conclude that while some of the methodologies are common, the more non-conventional approaches, such as market utility-based models, are rarely used in the supplier selection literature, leaving much opportunity to further develop these less-used approaches and, ultimately, aid decision-makers in supply chain management.

scholarly journals An integrated grey-based multi-criteria decision-making approach for supplier evaluation and selection in the oil and gas industry

Kybernetes ◽  
2019 ◽  
Vol 49 (2) ◽  
pp. 406-441 ◽  
Author(s):  
Mohamad Amin Kaviani ◽  
Amir Karbassi Yazdi ◽  
Lanndon Ocampo ◽  
Simonov Kusi-Sarpong
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supplier Selection ◽  
Oil And Gas ◽  
Oil And Gas Industry ◽  
Supplier Evaluation ◽  
Multi Criteria Decision Making ◽  
Gas Industry ◽  
Content Type ◽  
Delphi Approach

PurposeThe oil and gas industry is a crucial economic sector for both developed and developing economies. Delays in extraction and refining of these resources would adversely affect industrial players, including that of the host countries. Supplier selection is one of the most important decisions taken by managers of this industry that affect their supply chain operations. However, determining suitable suppliers to work with has become a phenomenon faced by these managers and their organizations. Furthermore, identifying relevant, critical and important criteria needed to guide these managers and their organizations for supplier selection decisions has become even more complicated due to various criteria that need to be taken into consideration. With limited works in the current literature of supplier selection in the oil and gas industry having major methodological drawbacks, the purpose of this paper is to develop an integrated approach for supplier selection in the oil and gas industry.Design/methodology/approachTo address this problem, this paper proposes a new uncertain decision framework. A grey-Delphi approach is first applied to aid in the evaluation and refinement of these various available criteria to obtain the most important and relevant criteria for the oil and gas industry. The grey systems theoretic concept is adopted to address the subjectivity and uncertainty in human judgments. The grey-Shannon entropy approach is used to determine the criteria weights, and finally, the grey-EDAS (evaluation based on distance from average solution) method is utilized for determining the ranking of the suppliers.FindingsTo exemplify the applicability and robustness of the proposed approach, this study uses the oil and gas industry of Iran as a case in point. From the literature review, 21 criteria were established and using the grey-Delphi approach, 16 were finally considered. The four top-ranked criteria, using grey-Shannon entropy, include warranty level and experience time, relationship closeness, supplier’s technical level and risks which are considered as the most critical and influential criteria for supplier evaluation in the Iranian oil and gas industry. The ranking of the suppliers is obtained, and the best and worst suppliers are also identified. Sensitivity analysis indicates that the results using the proposed methodology are robust.Research limitations/implicationsThe proposed approach would assist supply chain practicing managers, including purchasing managers, procurement managers and supply chain managers in the oil and gas and other industries, to effectively select suitable suppliers for cooperation. It can also be used for other multi-criteria decision-making (MCDM) applications. Future works on applying other MCDM methods and comparing them with the results of this study can be addressed. Finally, broader and more empirical works are required in the oil and gas industry.Originality/valueThis study is among the first few studies of supplier selection in the oil and gas industry from an emerging economy perspective and sets the stage for future research. The proposed integrated grey-based MCDM approach provides robust results in supplier evaluation and can be used for future domain applications.

scholarly journals Multi-Criteria Decision Making (MCDM) Model for Supplier Evaluation and Selection for Oil Production Projects in Vietnam

Processes ◽  
2020 ◽  
Vol 8 (2) ◽  
pp. 134 ◽  
Author(s):  
Chia-Nan Wang ◽  
Hsiung-Tien Tsai ◽  
Thanh-Phong Ho ◽  
Van-Thanh Nguyen ◽  
Ying-Fang Huang
Keyword(s):  
Decision Making ◽  
Business Strategy ◽  
Economic Value ◽  
Oil Production ◽  
Complex Problem ◽  
Supplier Evaluation ◽  
Multi Criteria Decision Making ◽  
Scor Model ◽  
Decision Making Unit ◽  
The Right

The following research utilizes Multi-Criteria Decision Making (MCDM) in order to build a business strategy to reduce product costs, improve competitiveness, focus on production planning based on actual operating capacity and flexible adjustment according to the market, maximize the labor productivity of technology workshops, reduce costs and inventory, and focus on producing many petrochemical products and products of high economic value. Selecting the right materials supplier is of paramount importance to the success of the organization as a whole. Supplier evaluation and the selection of a suitable supplier is a complex problem in which the decision maker must consider both qualitative and quantitative factors. Multi-Criteria Decision Making Models are an effective tool used to solve complex selection issues including multiple criteria and options, especially for qualitative variables. Thus, the author proposes an MCDM model including the Supply Chain Operation Reference (SCOR) model, analytic hierarchy process (AHP) and the Data Envelopment Analysis (DEA) method to evaluate and select the optimal supplier in the oil industry. The criteria used to evaluate potential suppliers are determined through the SCOR model, the weight of all criteria are defined by the AHP model through an expert’s opinion, and DEA is used to rank providers at the final stage. After the model implementation and the results, decision-making unit DMU_01, DMU_04 and DMU_10 are shown to be the best suppliers. This research provides a Multi-Criteria Decision Making model for supplier evaluation and selection in oil production projects. This research also presents useful guidelines for supplier selection processes in other industries.

Multi-criteria decision making for supplier selection using fuzzy AHP approach

2015 ◽  
Vol 22 (6) ◽  
pp. 1158-1174 ◽  
Author(s):  
Vinod Yadav ◽  
Milind Kumar Sharma
Keyword(s):  
Decision Making ◽  
Automobile Industry ◽  
Supplier Selection ◽  
Selection Process ◽  
Fuzzy Ahp ◽  
Selection Model ◽  
Multi Criteria Decision Making ◽  
Analytic Hierarchy ◽  
Content Type ◽  
Hierarchy Process

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.

scholarly journals An Application of Analytic Hierarchy Process and Fuzzy Analytic Hierarchy Process to The Case Type Selection Problem

2018 ◽  
Vol 1 (1) ◽  
pp. 1179-1188
Author(s):  
Tülay Korkusuz Polat
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Analytic Hierarchy Process ◽  
Raw Materials ◽  
Fuzzy Ahp ◽  
Raw Material ◽  
Fuzzy Analytic Hierarchy Process ◽  
Multi Criteria Decision Making ◽  
Analytic Hierarchy ◽  
Hierarchy Process

Business enterprises need to show high performance in their industries in order to achieve a sustainable competition. This is not related only to individual performances, and each link on supply chain may have a considerable effect on business performance. Therefore, supply chain management is quite essential to the enterprises that supplier selection is one of its key elements to be run, and another is establishing the form of packaging before the supplier delivers the ordered raw materials. Raw material costs are influenced by the ability to determine such issues as packaging way, type of case, etc., and these factors are also important to maintain the quality of material. The aim of this study is to select the type of the case for raw materials to be placed in by the supplier, in the automobile industry with very intense competition. In order to solve this multi-criteria decision making problem, the Analytic Hierarchy Process (AHP), one of the multi-criteria decision making techniques, was used. Due to the ambiguity in several paired comparisons, the problem was also resolved using the Fuzzy Analytic Hierarchy Process (Fuzzy AHP).

scholarly journals A Novel Multi-Criteria Decision-Making Model for Building Material Supplier Selection Based on Entropy-AHP Weighted TOPSIS

Entropy ◽  
2020 ◽  
Vol 22 (2) ◽  
pp. 259 ◽  
Author(s):  
Chun-Ho Chen
Keyword(s):  
Decision Making ◽  
Building Material ◽  
Supplier Selection ◽  
Service Providers ◽  
Evaluation Criteria ◽  
Multi Criteria Decision Making ◽  
Topsis Method ◽  
Entropy Weight ◽  
Analytic Hierarchy ◽  
Decision Making Model

The type of criterion weight can be distinguished according to different decision methods. Subjective weights are given by decision makers based on their knowledge, experience, expertise, and other factors. Objective weights are obtained through multi-step calculations of the evaluation matrix constructed from the actual information about the evaluation criteria of the alternatives. A single consideration of these two types of weights often results in biased results. In addition, in order to build an effective supply chain source, buyers must find suitable quality products and/or service providers in the process of supplier selection. Based on the above reasons, it is difficult to accurately select the appropriate alternative. The main contribution of this paper is to combine entropy weight, analytic hierarchy process (AHP) weight, and the technique for order preference by similarity to an ideal solution (TOPSIS) method into a suitable multi-criteria decision making (MCDM) solution. The TOPSIS method is extended with entropy-AHP weights, and entropy-AHP weights are used instead of subjective weights. A novel decision-making model of TOPSIS integrated entropy-AHP weights is proposed to select the appropriate supplier. Finally, we take the selection of building material suppliers as an example and use sensitivity analysis to show that the combination of the TOPSIS method based on entropy-AHP weights can effectively select the appropriate supplier.

scholarly journals A Fuzzy Multicriteria Decision-Making (MCDM) Model for Sustainable Supplier Evaluation and Selection Based on Triple Bottom Line Approaches in the Garment Industry

Processes ◽  
2019 ◽  
Vol 7 (7) ◽  
pp. 400 ◽  
Author(s):  
Chia-Nan Wang ◽  
Ching-Yu Yang ◽  
Hung-Chun Cheng
Keyword(s):  
Decision Making ◽  
Production Process ◽  
Supplier Selection ◽  
Triple Bottom Line ◽  
Multicriteria Decision Making ◽  
Garment Industry ◽  
Supplier Evaluation ◽  
Bottom Line ◽  
Multicriteria Decision ◽  
Decision Making Unit

Vietnam’s garment industry is facing many challenges, including domestic competition and the global market. The free trade agreement, which Vietnam signed, includes environmental barriers, sustainable development, and green development. The agreement further requires businesses to make efforts to improve not only product quality but also the production process. In cases when enterprises cause environmental pollution in the production process and do not apply solutions to reduce waste, save energy, and natural resources, there is a risk of no longer receiving orders or orders being rejected, especially orders from the world’s major branded garment companies. In this research, the authors propose a multicriteria decision-making model (MCDM) for optimizing the supplier evaluation and selection process for the garment industry using sustainability considerations. In the first stage of this research, all criteria affecting supplier selection are determined by a triple bottom line (TBL) model (economic, environmental, and social aspects) and literature reviews; in addition, the fuzzy analytic hierarchy process (FAHP) method was utilized to identify the weight of all criteria in the second stage. The technique for order preference by similarity to an ideal solution (TOPSIS) is a multicriteria decision analysis method, which is used for ranking potential suppliers in the final stage. As a result, decision-making unit 10 (DMU/10) is found to be the best supplier for the garment industry. The contribution of this research includes modeling the supplier selection decision problem based on the TBL concept. The proposed model also addresses different complex problems in supplier selection, is a flexible design model for considering the evaluation criteria, and is applicable to supplier selection in other industries.

scholarly journals Multi-criteria decision-making model for supporting manufacturing settlements location in Africa after COVID-19

2021 ◽  
Vol 13 ◽  
pp. 184797902110233
Author(s):  
Stefania Bait ◽  
Serena Marino Lauria ◽  
Massimiliano M. Schiraldi
Keyword(s):  
Decision Making ◽  
Value Chain ◽  
Multinational Enterprises ◽  
Value Added ◽  
Plant Performance ◽  
Multi Criteria Decision Making ◽  
African Countries ◽  
Analytic Hierarchy ◽  
Location Selection ◽  
Decision Making Model

The COVID-19 emergency is affecting manufacturing industries all over the world. Notably, it has generated several issues in the products’ supply and the global value chain in African countries. Besides this, Africa’s manufacturing value-added rate grew only 1.5 since 2018, and the foreign direct investment (FDI) from multinational enterprises (MNEs) remains very low due to high-risk factors. Most of these factors are linked to a non-optimized location selection that can adversely affect plant performance. For these reasons, supporting decision-makers in selecting the suitable country location in Africa is crucial, both for contributing to countries’ growth and companies’ performance. This research aims at presenting a comprehensive multi-criteria decision-making model (MCDM) to be used by MNEs to evaluate the best countries to develop new manufacturing settlements, highlighting the criteria that COVID-19 has impacted. Thus, it has affected countries’ performance, impacting the plant location selection choices. A combination of the Analytic Hierarchy Process (AHP) and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methods have also been used for comparative analysis. The criteria used in the proposed approach have been validated with a panel of MNEs experts.

Sign in / Sign up

Export Citation Format

Share Document