Multi-criteria decision analysis for pharmaceutical supplier selection problem using fuzzyTOPSIS

PurposeSupplier selection in the supply chain network (SCN) has strategic importance and involves multiple factors. The multi-criteria nature of the problem coupled with environmental uncertainty requires several procedures and considerations. The issue of decision-making in selecting the best among various qualified suppliers remains the major challenge in the pharmaceutical industry. This study investigated the multi-criteria multi-supplier decision-making process and proposed a model for supplier selection problems based on mixed-integer linear programming.Design/methodology/approachThe concept of principal component analysis (PCA) was used to reduce data dimensionality, and the four best criteria have been considered and selected. The result is subjected to decision-makers’ (DMs’) reliability test using the concept of a triangular fuzzy number (TFN). The importance of each supplier to each measure is established using fuzzy technique for order preference by similarity to an ideal solution approach, and the suppliers have ranked accordingly.FindingsThis study proposes a mixed integer linear programming model for supplier selection in a pharmaceutical company. The effectiveness of the proposed model has been demonstrated using a numerical example. The solution shows the model's applicability in making a sound decision in pharmaceutical companies in the space of reality. The model proposed is simple. Readily commercial packages such as LINDO/LINGO and GAMS can solve the model.Research limitations/implicationsThis research contributed to the systematic manner of supplier selection considering DMs’ value judgement under a fuzzy environment and is limited to the case study area. However, interested researchers can apply the study in other related manufacturing industries. However, the criteria have to be revisited to suit that system and might require varying ratings based on the experts' opinions in that field.Practical implicationsThis work suggests more insights practically by considering a realistic and precise investigation based on a real-life case study of pharmaceutical companies with six primary criteria and twenty-four sub-criteria. The study outcome will assist organizations and managers in conducting the best decision objectively by selecting the best suppliers with their various standards and terms among many available contenders in the manufacturing industry.Originality/valueIn this paper, the authors attempted to identify the most critical attributes to be preserved by the top managers (DMs) while selecting suppliers in pharmaceutical companies. The study proposed an MILP model for supplier selection in the pharmaceutical company using fuzzy TOPSIS.

Choosing Startups as Suppliers: A Supplier Selection Archetypes Typology

Recent research demonstrates the value of examining collaborations between established organizations and startups via the lens of the buyer–supplier relationship. However, enterprises must first find, analyze, and select potential startups as suppliers before they can exploit startups' resources and talents in a buyer–supplier relationship. Due to the fact that earlier research has focused exclusively on how purchasing firms select established firms as suppliers, it is unknown which processes, tools, or organizational approaches purchasing organizations employ when selecting startup firms as suppliers. These suppliers are qualitatively distinct in that they lack organizational structure, financial resources, and operational competencies, offering a substantial risk to purchasing organizations. This inductive, qualitative case study research elicits data from twenty established purchasing firms and examines how they choose startup suppliers. We begin by identifying five design motifs that differentiate purchasing firms' selection procedures. We create a typology of three supplier selection paradigms based on these themes. The findings suggest that enterprises who are ready and able to adjust their selection technique to startups should exhibit a higher level of selection performance, implying a greater likelihood of selecting acceptable startups as suppliers. The findings contribute to the literature on supplier selection and shed light on the burgeoning sector of new venture suppliers.

Implementation of a fuzzy decision support system for selection of hand tractor assembly suppliers

Supplier selection is a complex problem in the current Industry 4.0 era. The large number of suppliers with different performance qualities makes it difficult for the company's internal parties to choose the appropriate supplier. The suitability of quality suppliers needed to supply raw materials needed by the industry is an important matter to be resolved. In the hand tractor assembly industry, this small and medium industry is also very dependent on the availability of supply materials, and of course it also depends on the selection of the supplier itself. In this study, the object of research is the 151 hand tractor assembly manufacturing industry using 10 main criteria for selecting suppliers. Each criterion has a weight that is calculated using the Fuzzy AHP method so as to obtain alternative supplier results that are displayed in order. A supplier is a company or individual that provides the raw materials needed by the company and its competitors to produce certain goods. In this study, a decision support system for supplier selection at the company has been developed using the AHP fuzzy method. The results of this study are expected to help companies in selecting suppliers that match the predetermined criteria. In building a decision support system that provides supplier recommendations, the authors apply the AHP fuzzy method in the process. With the Supplier Selection Decision Support System Using the AHP Fuzzy Method, it can help companies in selecting suppliers. Based on the research that has been done, suggestions can be made for a Decision Support System for Supplier Selection Using the Fuzzy AHP Method so that in the future it can facilitate the use of a more dynamic system

Supplier selection criteria in the Greek hotel food and beverage divisions

PurposeThe purpose of this study is to investigate the factors affecting supplier selection in food and beverage divisions in the Greek hotel industry. This research aimed to (1) examine the factors affecting supplier selection in food and beverage divisions of the Greek hotel industry, as these were perceived by the Greek purchasing managers themselves; (2) investigate the underlying factors when changing a supplier.Design/methodology/approachA survey was conducted using a closed-ended type questionnaire. Data collection met the following three criteria: hotels with a fully operational food and beverage division could participate in the research, the research population comprised all the hotels located in 13 regions of Greece, the sample represented over 10% of the total hotels in each region. Finally, 653 valid questionnaires were collected.FindingsExploratory factor analysis showed that six broad sets of factors affect supplier selection in the food and beverage divisions: those related to raw materials, financing, environment, services, origin-nutrients and people. Regarding the factors considered in changing a supplier, three factors were found: service and product quality, economic policy change, food quality and safety management systems.Research limitations/implicationsGreek hotel managers could use the findings of the study to effectively create a supply chain management strategy that will lead to improved firm performance. Understanding the importance of the selection criteria for the supply chain performance and the need to build strong relationships with stakeholders, suppliers could also create a proper supply chain.Originality/valueThe study adds to the knowledge regarding the perspectives of the Greek purchasing managers in food and beverage divisions in hotel industry and the body of much-needed research. Using exploratory factor analysis, a sort of grouping of the variables seems beneficial for simplifying how to present and understand the factors affecting supplier selection in food and beverage divisions within the Greek context.

Strategic Supplier Selection's Effects on Buyer Competitive Performance in Matching Domains: Is Supplier Integration Effective at Mediating Relationships?

The purpose of this research is to determine whether strategic supplier selection based on supplier capability in new product development, supplier quality, and supplier cost directly or indirectly improves the buyer's competitive performance capabilities in the matched domains of buyer product innovation, buyer quality, and buyer competitive pricing. The resource-based view of the firm is used to frame the direct effects of strategic supplier selection, arguing that a buyer's ability to select a supplier with resources and expertise in a specified domain should improve the buyer's performance capability in the "matched" domain (but not necessarily in "unmatched" domains). Two supplier integration techniques are considered as potential mediators, assuming indirect pathways. The research hypotheses examine both direct and indirect impacts for each of the matched domains, but do not assume cross-domain interactions. For instance, supplier selection for new product development capability should have an effect on buyer product innovation (in matched domains), but not always on buyer quality capability (unmatched domains). While the direct impacts of strategic supplier selection on buyer performance are supported in each matched domain, the indirect effects via supplier integration are not substantial for the matched domains. Strategic supplier selection is identified as a viable source of competitive advantage in the resource-based view. By contrast, supplier development and supplier partnership do not provide additional performance benefits in a particular domain over and beyond those obtained from strategic supplier selection in that domain; rather, it is the type of the resources selected that determines competitive advantage.