Using Group Decision Making Techniques and Optimizing Purchase Plan to Rank Suppliers (Case Study: IKCO Spare Parts & After Sales Services ISACO)
Subject Areas : Industrial Management
Salomeh Ghasempour Farsani
1
(M.A in Industrial Management, Science and Research Branch, Islamic Azad University, Tehran, Iran.)
Alireza Rashidi komijan
2
(Department of Industrial Engineering, Firoozkooh Branch, Islamic Azad University, Firoozkooh, Iran)
Keywords:
Abstract :
Supply chain management is a new issue in the field of industrial management. In the current changing business environment, communication between different parts of the supply chain is important. One of the most important parts of a supply chain is material purchasing from different suppliers as a major part of the marginal cost of a product is raw material cost. Selecting suppliers correctly will reduce procurement costs and increase the competitiveness of companies. Moreover, one of the most important decisions that must be considered is the determination of order quantity. As an automobile is comprised of thousands of parts, choosing the right suppliers and determination of orders quantity are very important in the Automotive Industry. In this paper, we first identify the criteria for the selection of suppliers of ISACO Company. Then, suppliers of consumable items are ranked using group decision-making techniques. Finally, we determine optimum purchase plan using a mixed integer programming model. The results of this paper which show the best supplier of consumable items and the optimum purchase quantity can help ISACO to manage suppliers properly. For example, we demonstrate that one supplier has priority for buying the most consumable items or another supplier isn’t suitable for any purchase.
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2- Amid. S, Razmi. J and Zhang. G. (2011). Supplier selection and order allocation based on fuzzy SWOT analysis and fuzzy linear programming. Expert Systems with Applications, 38(1), 334 –342.
3- Asgharpour, M.J. (2010). Group Decision Making and Game Theory in Operation Research. Tehran University. Press, 2nd Edition. 418p.
4- Asgharpour, M.J. (2011). Multiple Criteria Decision Making. Tehran University. Press, 9, 399.
5- Chan F. T. S. and Chan H. K. (2004). Development of the supplier selection model a case study in the advanced technology industry. Journal of Engineering Manufacture 218(12), 1807-1824.
6- Chen. Ch.T., Lin. Ch. T. and Huang. S. Fn. (2006). A fuzzy approach for supplier evaluation and selection in supply chain management. International Journal of Production Economics, 102(2), 289-301.
7- De Boer. L., Labro. E., and Morlacchi. P. (2001). A review of methods supporting supplier selection. European Journal of Purchasing and Supply Management, 7(2), 75-89.
8- Dickson G.W., (1966). An Analysis of Vendor Selection: Systems and Decisions. International Journal of Purchasing and Materials Management, 2(1), 5-17.
9- Dulmin R., Mininno V. (2003). Supplier selection using a multi-criteria decision aid method. Journal of Purchasing and Supply Management, 9(4), 177–187.
10- Ghodsypour. S. H. & O’Brien. C. (2001). The total cost of logistics in supplier selection under conditions of multiple Sourcing, multiple criteria and capacity constraint. International Journal of Production Economics, 73(1), 15-27.
11- Ho. W., Xu X., and Dey P. K., (2010). Multi criteria decision making approaches for supplier evaluation and selection: A literature review. European Journal of Operational Research, 202(1), 16–24.
12- Karimi razakani, Z. (2011), Ranking suppliers using Topsis, Promothee and Electre methods and final result based on Borda, Copland and Average methods, MA thesis, Tehran university.
13- Monczka. R. M., Handfield. R. B. and Trent. Robert J. (1998). Purchasing and supply chain management. South-Western College Publishing, first Ed.
14- Petroni A. and Braglia M. (2000). Vendor selection using principal component analysis. Journal of Supply Chain Management: A Global Review Purchasing Supply, 36(2), 63-69.
15- Thiruchelvam. S. & Tookey, J.E. (2011). Evolving Trends of Supplier Selection Criteria and Methods. International Journal of Automotive and Mechanical Engineering (IJAME), 4(1), 437-454.
16- Weber. C. A., Current. J. R., Benton. W. C. (1991).Vendor selection criteria and methods. European Journal of Operational Research, 50(1), 2-19.
17- Xia. W. and Wu. Z. (2007). Supplier selection with multiple criteria in volume discount environments. Omega, 35(5), 494–504.
_||_1- Aissaoui. N., Haouari. M., Hassini. E. (2007). Supplier selection and order lot sizing modeling: A review. Computers and Operations Research, 34 (12), 3516-3540.
2- Amid. S, Razmi. J and Zhang. G. (2011). Supplier selection and order allocation based on fuzzy SWOT analysis and fuzzy linear programming. Expert Systems with Applications, 38(1), 334 –342.
3- Asgharpour, M.J. (2010). Group Decision Making and Game Theory in Operation Research. Tehran University. Press, 2nd Edition. 418p.
4- Asgharpour, M.J. (2011). Multiple Criteria Decision Making. Tehran University. Press, 9, 399.
5- Chan F. T. S. and Chan H. K. (2004). Development of the supplier selection model a case study in the advanced technology industry. Journal of Engineering Manufacture 218(12), 1807-1824.
6- Chen. Ch.T., Lin. Ch. T. and Huang. S. Fn. (2006). A fuzzy approach for supplier evaluation and selection in supply chain management. International Journal of Production Economics, 102(2), 289-301.
7- De Boer. L., Labro. E., and Morlacchi. P. (2001). A review of methods supporting supplier selection. European Journal of Purchasing and Supply Management, 7(2), 75-89.
8- Dickson G.W., (1966). An Analysis of Vendor Selection: Systems and Decisions. International Journal of Purchasing and Materials Management, 2(1), 5-17.
9- Dulmin R., Mininno V. (2003). Supplier selection using a multi-criteria decision aid method. Journal of Purchasing and Supply Management, 9(4), 177–187.
10- Ghodsypour. S. H. & O’Brien. C. (2001). The total cost of logistics in supplier selection under conditions of multiple Sourcing, multiple criteria and capacity constraint. International Journal of Production Economics, 73(1), 15-27.
11- Ho. W., Xu X., and Dey P. K., (2010). Multi criteria decision making approaches for supplier evaluation and selection: A literature review. European Journal of Operational Research, 202(1), 16–24.
12- Karimi razakani, Z. (2011), Ranking suppliers using Topsis, Promothee and Electre methods and final result based on Borda, Copland and Average methods, MA thesis, Tehran university.
13- Monczka. R. M., Handfield. R. B. and Trent. Robert J. (1998). Purchasing and supply chain management. South-Western College Publishing, first Ed.
14- Petroni A. and Braglia M. (2000). Vendor selection using principal component analysis. Journal of Supply Chain Management: A Global Review Purchasing Supply, 36(2), 63-69.
15- Thiruchelvam. S. & Tookey, J.E. (2011). Evolving Trends of Supplier Selection Criteria and Methods. International Journal of Automotive and Mechanical Engineering (IJAME), 4(1), 437-454.
16- Weber. C. A., Current. J. R., Benton. W. C. (1991).Vendor selection criteria and methods. European Journal of Operational Research, 50(1), 2-19.
17- Xia. W. and Wu. Z. (2007). Supplier selection with multiple criteria in volume discount environments. Omega, 35(5), 494–504.
