Abstract
Extensive literature review shows that supplier selection, the indispensible part of any business, is highly influenced by commodity strategy, economic tender quantity, process, and product characteristics. Today, more and more companies are adopting proactive buying process to sustain in cutthroat competition. To justify such transition, an attempt has been made in this chapter to depict some of the essential characteristics of supplier selection process. This chapter depicts various mathematical models to select and evaluate suppliers in deterministic and in fuzzy environment. Mathematical models are developed with fuzzy analytic hierarchy process (FAHP), fuzzy TOPSIS, and multi-objective genetic algorithm.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
Agrawal N, Nahmias S (1997) Rationalization of the supplier base in the presence of yield uncertainty. Prod Oper Manage 6(3):291–308
Amid A, Ghodsypour SH, O’Brien C (2007) A weighted additive fuzzy multi-objective model for the supplier selection problem under price breaks in a supply chain. Int J Prod Econ. doi:10.1016/j.ijpe.2007.02.040
Amid A, Ghodsypour SH, O’Brien C (2011) A weighted max–min model for fuzzy multi-objective supplier selection in a supply chain. Int J Prod Econ 131:139–145
Amin SH, Razmi J (2008) An integrated fuzzy model for supplier management: a case study of ISP selection and evaluation. Expert Syst Appl. doi:10.1016/j.eswa.2008.10.012
Bayazita O, Karpak B (2005) An AHP application in vendor selection. In: Proceedings of ISAHP Honolulu, Hawaii, 2005 July 8–10
Bilsel RU, Ravindran A (2011) A multiobjective chance constrained programming model for supplier selection under uncertainty. Transp Res Part B 45:1284–1300
Bottani E, Rizzi A (2008) An adapted multi-criteria approach to suppliers and products selection—an application oriented to lead-time reduction. Int J Prod Econ 111:763–781
Bozarth C, Handfield R, Das A (1998) Stages of global sourcing strategy evolution: An exploratory study. J Oper Manage 16(2–3):241–255
Bruno G, Esposito E, Genovese A, Passaro R (2012) AHP-based approaches for supplier evaluation: problems and perspectives. J Purchasing Supply Manage 18:159–172
Cakir O, Canbolat MS (2008) A web-based decision support system for multi-criteria inventory classification using fuzzy AHP methodology. Expert Syst Appl 35:1367–1378
Chan FTS, Kumar N (2007) Global supplier development considering risk factors using fuzzy extended AHP-based approach. Omega 35:417–431
Chang DY (1996) Application of The Extent Analysis Method of Fuzzy AHP. Eur J Oper Res 95:649–655
Che ZH, Wang HS (2008) Supplier selection and supply quantity allocation of common and non-common parts with multiple criteria under multiple products. Comput Ind Eng 55:110–133
Che ZH, Wang HS, Sha DY (2007) A multi-criterion interaction-oriented model with proportional rule for designing supply chain networks. Expert Syst Appl 33:1042–1053
Chen KL, Chen KS, Li RK (2005) Suppliers capability and price analysis chart. Int J Prod Econ 98:315–327
Chen CT, Lin CT, Huang SF (2006) A fuzzy approach for supplier evaluation and selection in supply chain management. Int J Prod Econ 102:289–301
Chou S-Y, Chang Y-H (2008) A decision support system for supplier selection based on a strategy-aligned fuzzy SMART approach. Expert Syst Appl 34:2241–2253
Choudhary D, Shankar R (2012) Joint decision of procurement lot-size, supplier selection, and carrier selection. J Purchasing Supply Manage. doi:10.1016/j.pursup.2012.08.002
Csutora R, Buckley JJ (2001) Fuzzy hierarchical analysis: the Lamda-Max method. Fuzzy Sets Syst 120:181–195
Daǧdeviren M, Yavuz S, Kilinç N (2009) Weapon selection using the AHP and TOPSIS methods under fuzzy environment. Expert Syst Appl 36(4):8143–8151
De Boer L, Labro E, Molrlacchi (2001) A Review of methods supporting supplier Selection. Eur J Purchasing Supply Manage 7(2):75–89
Deb K (2001) Multi-objective optimization using evolutionary algorithms. John Willey and Sons, New York
Demirtas EA, Ustun O (2007) Analytic network process and multi-period goal programming integration in purchasing decisions. Comp Ind Eng. doi:10.1016/j.cie.2006.12.006
Dickson GW (1966) An analysis of vendor selection systems and decisions. J Purchasing 2(1):5–17
Erdem AS, Göçen E (2012) Development of a decision support system for supplier evaluation and order allocation. Expert Syst Appl 39:4927–4937
Faez F, Ghodsypour SH, O’Brien C (2007) Vendor selection and order allocation using an integrated fuzzy case-based reasoning and mathematical programming model. Int J Prod Econ. doi:10.1016/j.ijpe.2006.11.022
Gaither N (1996) Production and operations management. Duxbury Press, Florence, KY
Gencer C, Gürpinar D (2007) Analytic network process in supplier selection: a case study in an electronic firm. Appl Math Model 31:2475–2486
Ghodsypour SH, O’Brien C (1998) A decision support system for supplier selection using an integrated analytic hierarchy process and linear programming. Int J Prod Econ 56–57:199–212
Ghodsypour SH, O’Brien C (2001) The total cost of logistics in supplier selection, under conditions of multiple sourcing, multiple criteria and capacity constraint. Int J Prod Econ 73:15–27
Guan Z, Jin Z, Zou B (2007) A multi-objective mixed-integer stochastic programming model for the vendor selection problem under multi-product purchases. Inf Manag Sci 18(3):241–252
Guo M, Zhu J, Zhao X (2007) A Bi-level programming model for supplier selection in constructing logistics service supply chain. In: Proceedings of 2007 IEEE IEEM ISBN: 1-4244-1529-2/07
Ha SH, Krishnan R (2008) A hybrid approach to supplier selection for the maintenance of a competitive supply chain. Expert Syst Appl 34:1303–1311
Hahn CK, Kim KH, Kim JS (1986) Costs of competition: implications for purchasing strategy. J Purchase Mater Manag (Fall)
Handfield R, Walton SV, Sroufe R, Melnyk SA (2002) Applying environmental criteria to supplier assessment: A study in the application of the analytical hierarchy process. Eur J Oper Res 141:70–87
Hong G, Ha SH (2008) Evaluating supply partner’s capability for seasonal products using machine learning techniques. Comput Ind Eng 54:721–736
Hong GH, Park SC, Jang DS, Rho HM (2005) An effective supplier selection method for constructing a competitive supply-relationship. Expert Syst Appl 28:629–639
Hsu C-W, Hu AH (2009) Applying hazardous substance management to supplier selection using analytic network process. J Clean Prod 17:255–264
Huang SH, Keskar H (2007) Comprehensive and configurable metrics for supplier selection. Int J Prod Econ 105:510–523
Jang J, Sun C, Mizutani E (2004) Neuro-Fuzzy and soft computing: a computational approach to learning and machine intelligence. Prentice-Hall, India
Jharkharia S, Shankar R (2007) Selection of logistics service provider: an analytic network process. Omega 35:274–289
Kelle P, Silver EA (1990) Decreasing expected shortages through order splitting. Eng Costs Prod Econ 19:351–357
Kokangul A, Susuz Z (2008) Integrated analytical hierarch process and mathematical programming to supplier selection problem with quantity discount. Appl Math Model. doi:10.1016/j.apm.2008.01.021
Kubat C, Yuce B (2006) Supplier selection with genetic algorithm and fuzzy AHP. In: Proceedings of the 5th international symposium on intelligent manufacturing systems, 29–31 May
Kumar M, Vrat P, Shankar R (2004) A fuzzy goal programming approach for vendor selection problem in a supply chain. Comput Ind Eng 46:69–85
Lee AHI (2008) A fuzzy supplier selection model with the consideration of benefits, opportunities, costs and risks. Expert Syst Appl. doi:10.1016/j.eswa.2008.01.045
Lee AHI (2009) A fuzzy supplier selection model with the consideration of benefits, opportunities, costs and risks. Expert Syst Appl 36:2879–2893
Lee E, Ha S, Kim S (2001) Supplier selection and management system considering relationships in supply chain management. IEEE Trans Eng Manage 48(3):307–317
Lee AHI, Kang H-Y, Chang C-T (2008) Fuzzy multiple goal programming applied to TFT-LCD supplier selection by downstream manufacturers. Expert Syst Appl. doi:10.1016/j.eswa.2008.08.044
Levary RR (2008) Using the analytic hierarchy process to rank foreign suppliers based on supply risks. Comput Ind Eng 55:535–542
Li GD, Yamaguchi D, Nagai M (2007) A grey-based decision-making approach to the supplier selection problem. Math Comp Model 46:573–581
Lin R-H (2008) An integrated FANP–MOLP for supplier evaluation and order allocation. Appl Math Model. doi:10.1016/j.apm.2008.08.021
Lin H-T, Chang W-L (2008) Order selection and pricing methods using flexible quantity and fuzzy approach for buyer evaluation. Eur J Oper Res 187:415–428
Mehdizadeh E, Moghaddam RT (2007) A Hybrid Fuzzy Clustering PSO Algorithm for a Clustering Supplier Problem. In: Proc. 2007 IEEE IEEM ISBN: 1-4244-1529-2/07
Mikhailov L (2003) Deriving priorities from fuzzy pair wise comparison judgements. Fuzzy Sets Syst 134:365–385
Moghadam MRS, Afsar A, Sohrabi B (2008) Inventory lot-sizing with supplier selection using hybrid intelligent algorithm. Appl Soft Comput 8:1523–1529
Mouli KVVC, Subbaiah KV, Rao KM, Acharyulu SG (2006) Particle swarm optimization approach for vendors selection. IE(I) J-PR 87:3–6
Moynihan GP, Saxena P, Fonseca DJ (2006) Development of decision support system for procurement operations. Int J Logistics Sys Manag 2(1):1–18
Mukherjee S, Kar S (2012) A three phase supplier selection method based on fuzzy preference degree. J King Saud Univ—Comp Inf Sci http://dx.doi.org/10.1016/j.jksuci.2012.11.001
Ng WL (2008) An efficient and simple model for multiple criteria supplier selection problem. Eur J Oper Res 186:1059–1067
Önüt S, Kara SS, Işik E (2008) Long term supplier selection using a combined fuzzy MCDM approach: a case study for a telecommunication company. Expert Syst Appl. doi:10.1016/j.eswa.2008.02.045
Opricovic S, Tzeng G (2004) Compromise solution by MCDM methods: a comparative analysis of VIKOR and TOPSIS. Eur J Oper Res 156:445–455
Parthiban P, Zubar HA, Garge CP (2012) A multi criteria making approach for suppliers selection. Procedia Eng 38:2312–2328
Ramasesh RV, Ord JK, Hayya JC, Pan AC (1991) Sole versus dual sourcing in stochastic lead time(s, Q) inventory models. Manage Sci 37(4):428–443
Riedla DF, Kaufmann L, Zimmermann C, Perols JL (2012) Reducing uncertainty in supplier selection decisions: antecedents and outcomes of procedural rationality. J Oper Manag. doi:10.1016/j.jom.2012.10.003
Saen RF (2007) Suppliers selection in the presence of both cardinal and ordinal data. Eur J Oper Res 183:741–747
Sanayei A, Mousavi SF, Yazdankhah A (2010) Group decision making process for supplier selection with VIKOR under fuzzy environment. Expert Syst Appl 37:24–30
Sarfaraz AR, Balu R (2006) An integrated approach for supplier selection. IEEE ISBN: 0-7803-9701-0/06
Sawik T (2010) Single vs. multiple objective supplier selection in a make to order environment. Omega 38:203–212
Sawik T (2011) Supplier selection in make-to-order environment with risks. Math Comp Model 53:1670–1679
Shaw K, Shankar R, Yadav SS, Thakur LS (2012) Supplier selection using fuzzy AHP and fuzzy multi-objective linear programming for developing low carbon supply chain. Expert Syst Appl 39:8182–8192
Shyur HJ, Shih HS (2006) A hybrid MCDM model for strategic vendor selection. Math Comput Model 44:749–761
Soner Kara S (2011) Supplier selection with an integrated methodology in unknown environment. Expert Syst Appl 38:2133–2139
Srinivas N, Deb K (1994) Mult-iobjective optimization using non-dominated sorting in genetic algorithms. Evol Comput 2(3):221–248
Tam MCY, Tummala VMR (2001) An application of the AHP in vendor selection of a telecommunications system. Omega 29(2):171–182
Tolga E, Demircan ML, Kahraman C (2005) Operating system selection using fuzzy replacement analysis and analytic hierarchy process. Int J Prod Econ 97:89–117
Ustun O, Demirtas EA (2008) An integrated multi-objective decision-making process for multi-period lot-sizing with supplier selection. Omega 36:509–521
Van der Rhee B, Verma R, Plaschka G (2008) Understanding trade-offs in the supplier selection process: the role of flexibility, delivery, and value-added services/support. Int J Prod Econ. doi:10.1016/j.ijpe.2008.07.024
Van Laarhoven PJM, Pedrycz W (1983) A fuzzy extension of Saaty’s priority theory. Fuzzy Sets Syst 11:199–227
Wang W-P (2010) A fuzzy linguistic computing approach to supplier evaluation. Appl Math Model 34:3130–3141
Wang J (2012) Do firms’ relationships with principal customers/suppliers affect shareholders’ income? J Corp Finan 18:860–878
Wang YM, Parkan C (2006) Two new approaches for assessing the weights of fuzzy opinions in group decision analysis. Inf Sci 176:3538–3555
Wang YM, Elhag TMS, Hua ZS (2006) A modified fuzzy logarithmic least squares method for fuzzy analytic hierarchy process. Fuzzy Sets Syst 157(23):3055–3071
Wang YM, Luo Y, Hua ZS (2008a) On the extent analysis method for fuzzy AHP and its applications. Eur J Oper Res 186(2):735–747
Wang J-W, Cheng C-H, Cheng HK (2008b) Fuzzy hierarchical TOPSIS for supplier selection. Appl Soft Comput. doi:10.1016/j.asoc.2008.04.014
Wang S-Y, Chang S-L, Wang R-C (2009) Assessment of supplier performance based on product-development strategy by applying multi-granularity linguistic term sets. Omega 37:215–226
Weber CA, Current JR, Benton WC (1991) Vendor selection criteria and methods. Eur J Oper Res 50:2–18
Wu M (2007) Topsis-AHP simulation model and its application to supply chain management. World J Model Simul 3(3):196–201
Wu D, Olson DL (2008) Supply chain risk, simulation, and vendor selection. Int J Prod Econ 114:646–655
Wu WY, Shih H-A, Chan H-C(2008)The analytic network process for partner selection criteria in strategic alliances. Expert Sys Appl. doi:10.1016/j.eswa.2008.06.049
Wu W-Y, Sukoco BM, Li C-Y, Chen SH (2009) An integrated multi-objective decision-making process for supplier selection with bundling problem. Expert Syst Appl 36:2327–2337
Wu DD, Zhang Y, Wu D, Olson DL (2010) Fuzzy multi-objective programming for supplier selection and risk modeling: a possibility approach. Eur J Oper Res 200:774–787
Xia W, Wu Z (2007) Supplier selection with multiple criteria in volume discount environments. Omega 35:494–504
Xu R, Zhai X (1996) Fuzzy logarithmic least squares ranking method in analytic hierarchy process. Fuzzy Sets Syst 77:175–190
Yang JL, Chiu HN, Tzeng G-H, Yeh RH (2008) Vendor selection by integrated fuzzy MCDM techniques with independent and interdependent relationships. Inf Sci 178:4166–4183
Yao F, Hongli L (2007) Information systems outsourcing vendor selection based on analytic hierarchy process. IEEE ISBN: 1-4244-1312-5/07
Yu J-R, Tsai C-C (2008) A decision framework for supplier rating and purchase allocation: A case in the semiconductor industry. Comput Ind Eng 55:634–646
Zhang D, Zhang J, Lai K-K, Lu Y (2008) An novel approach to supplier selection based on vague sets group decision. Expert Syst Appl. doi:10.1016/j.eswa.2008.07.053
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2017 Springer (India) Pvt. Ltd.
About this chapter
Cite this chapter
Mukherjee, K. (2017). Modeling and Optimization of Traditional Supplier Selection. In: Supplier Selection. Studies in Systems, Decision and Control, vol 88. Springer, New Delhi. https://doi.org/10.1007/978-81-322-3700-6_2
Download citation
DOI: https://doi.org/10.1007/978-81-322-3700-6_2
Published:
Publisher Name: Springer, New Delhi
Print ISBN: 978-81-322-3698-6
Online ISBN: 978-81-322-3700-6
eBook Packages: EngineeringEngineering (R0)