Sharon M. Ordoobadi and Shouhong Wang
The purpose of this paper is to change the traditional supplier selection methods by shifting the emphasis from using a single model to using multiple models in the unstructured…
Abstract
Purpose
The purpose of this paper is to change the traditional supplier selection methods by shifting the emphasis from using a single model to using multiple models in the unstructured decision‐making context and to provide a tool for decision makers to make informed decisions of supplier selection in the multiple perspectives.
Design/methodology/approach
There are various supplier selection models available in the literature. However, using the result of a single model as a basis for making the final decision could lead to a biased decision given the fact that any model has its limitations. The qualities of the decision‐making process and the decision itself increase by applying a multiple perspectives approach rather than a single model. The multiple perspectives decision‐making allows collaboration and knowledge sharing among the participants which leads to a less‐biased decision. This study examines commonly applied supplier selection models, formulates general perspectives of these models, and proposes a framework of multiple perspectives decision making for supplier selection. It further provides a structure of supplier selection system based on the proposed approach. Through a prototype of web portal, the study demonstrates the usefulness of the proposed multiple perspective system approach in the decision context of collaboration and knowledge sharing.
Findings
The general finding from this study is that the multiple perspectives approach to supplier selection enables the decision makers to actively participate and fully understand the decision‐making process through knowledge sharing which in turn ensures high quality of the final decisions.
Practical implications
Supplier selection decision makers can make more informed decisions through collaboration among all decision‐making participants in the multiple perspectives. It informs supply chain managers of the potentially positive effect of knowledge sharing on the decision‐making process in supplier selection.
Originality/value
Multiple perspectives decision making provides a novel approach that emphasizes on the knowledge sharing and collaboration between the experts, who are familiar with the supplier relations, and the decision makers who are responsible for the final decisions.
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Lutz Kaufmann, Craig R. Carter and Christian Buhrmann
The nascent behavioral supply management (BSM) research stream has raised the level of attention given to deviations from the standard assumptions of the rational paradigm in…
Abstract
Purpose
The nascent behavioral supply management (BSM) research stream has raised the level of attention given to deviations from the standard assumptions of the rational paradigm in economics. The adaptation of cognitive heuristics, which add vulnerability to judgment and decision making, creates a pressing need to identify and develop mitigation strategies to debias decision making in the supply chain management environment. The purpose of this paper is to investigate debiasing measures, corresponding contextual variables in the supplier selection process, and their implications for financial decision effectiveness.
Design/methodology/approach
The authors used a large‐scale empirical survey among 306 buyers to investigate the relationships among individual and organizational contextual factors, debiasing measures in the supplier selection decision, and the financial effectiveness of the supplier selection decision.
Findings
It was found that organizational and individual contextual factors have differing effects on the use of debiasing approaches in the supplier selection decision. Further, the debiasing tactics can have a positive (in the case of supplier selection task decomposing) or a negative (in the case of an interactional challenging of the supplier selection) impact on the financial effectiveness of the supplier selection decision. These findings suggest that supply managers must better understand the contextual factors that influence the supplier selection decision, and carefully choose the correct debiasing tactics when selecting suppliers.
Originality/value
This paper relaxes the economic assumption of rational actors and addresses the need to identify and use debiasing tactics in supply chain management contexts. The research also complements the broader‐based behavioral decision‐making literature, which has often relied upon experimental methodologies that use undergraduate or MBA students, by employing a survey‐based approach with supply managers as key informants.
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Chhabi Ram Matawale, Saurav Datta and S.S. Mahapatra
The concept of agile supply chain (ASC) has become increasingly important as means of achieving a competitive edge in turbulent business environments. An ASC is a dynamic alliance…
Abstract
Purpose
The concept of agile supply chain (ASC) has become increasingly important as means of achieving a competitive edge in turbulent business environments. An ASC is a dynamic alliance of member enterprises, the adaptation of which is likely to introduce velocity, responsiveness and flexibility into the manufacturing system. In ASC management, supplier/partner selection is a key strategic concern; influenced by various agility-related criteria/attributes. Therefore, evaluation and selection of potential supplier in an ASC has become an important multi-criteria decision-making problem. The purpose of this paper is to report, a supplier selection procedure (module) in the context of ASC.
Design/methodology/approach
During supplier selection, subjectivity of evaluation information (human judgment) often creates conflict and bears some kind of uncertainty. To overcome this, the present work attempts to explore vague set theory to deal with uncertainties in the supplier selection decision-making process. Since, vague sets can provide more accurate information as compared to fuzzy sets. It considers true membership function as well as false membership function which give more superior results for uncertain information. In this procedure, first, linguistic variables have been used to assess appropriateness rating (performance extent) as well as priority weights for individual quantitative or qualitative criterions. Second, the concept of degree of similarity and probability of vague sets has been used to determine appropriate ranking order of the potential supplier alternatives.
Findings
A case empirical example has been provided. It has been proved that the methodology would be fruitful in considering different evaluation criterion (indices); may be contradicting in nature like beneficial and cost criterions. The application of vague set theory has also been proved as a better option to work under uncertain (fuzzy) decision-making environment in comparison to fuzzy set theory.
Originality/value
The application of vague set theory in multi-criteria group decision making has been reported in literature to a limited extent. Application of vague set as a decision-making tool in agile supplier selection appears relative new and unexplored work area. The work has got remarkable managerial implications.
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Lutz Kaufmann, Craig R. Carter and Christian Buhrmann
The authors perform a large‐scale review of debiasing literature with the purpose of deriving a mutually exclusive and exhaustive debiasing taxonomy. This taxonomy is used to…
Abstract
Purpose
The authors perform a large‐scale review of debiasing literature with the purpose of deriving a mutually exclusive and exhaustive debiasing taxonomy. This taxonomy is used to conceptualize debiasing activities in the supplier selection process. For each supplier selection‐debiasing construct, scale items are proposed.
Design/methodology/approach
A systematic classification approach was used to build a debiasing taxonomy, combined with a Q‐methodology.
Findings
Based on the developed and externally validated debiasing taxonomy, five debiasing activities for the supplier selection context are derived. The conceptual investigation of these supplier selection‐oriented debiasing measures helps both researchers and supply managers to gain a better understanding of debiasing mechanisms and to effectively further improve the supplier selection process by integrating behavioral aspects.
Originality/value
This research extends the taxonomy of decision biases developed by Carter, Kaufmann, and Michel, by systematically analyzing strategies to debias the decision‐making process. The highly fragmented research landscape on debiasing was inventoried and structured. As a result, a debiasing taxonomy was created that extracted five main debiasing categories. These were then conceptualized within the context of the supplier selection process. In doing so, debiasing literature from different research streams such as economics, psychology, and behavioral and strategic decision making was systematically integrated into the field of supply management. Proposed scale items allow for empirical investigation as a next step in the development of the nascent field of behavioral supply management.
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Avi Herbon, Shalom Moalem, Haim Shnaiderman and Joseph Templeman
The purpose of this paper is to develop a user‐oriented decision‐supporting applicable tool for selection of a single supplier out of a group of potential suppliers in a dynamic…
Abstract
Purpose
The purpose of this paper is to develop a user‐oriented decision‐supporting applicable tool for selection of a single supplier out of a group of potential suppliers in a dynamic business environment over a finite planning horizon.
Design/methodology/approach
A qualitative and quantitative description of the impact of a change in one or several business environment parameters on current and future supplier choice; the methodology is accompanied by a visual representation of those impacts for the decision maker. The paper presents extended simulation experiments to test the proposed methodology.
Findings
A strategy of replacing suppliers over a definite planning horizon based on a forecast of the business environment is significantly (2‐9 per cent) more efficient than a strategy of relying on a single leading supplier throughout the planning horizon. This efficiency gain is greater the more the business environment is dynamic.
Practical implications
The proposed methodology is applicable to a broad range of service and manufacturing organizations that operate in dynamic business environments and rely on complex purchasing systems. Thanks to its simplicity, it can be applied to very large systems with a broad range of selection and/or environmental parameters.
Originality/value
Although the supplier selection process has been extensively studied, the literature still lacks appropriate reference to the effects of a dynamic business environment on this process.
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Mohd. Nishat Faisal, Bader Al-Esmael and Khurram Jahangir Sharif
The purpose of this paper is to integrate the “triple bottom line (3BL)” approach in the supplier selection decision. It also aims to consider the feedback effect of the decision…
Abstract
Purpose
The purpose of this paper is to integrate the “triple bottom line (3BL)” approach in the supplier selection decision. It also aims to consider the feedback effect of the decision on strategic factors that determine the future viability of the firm in the market.
Design/methodology/approach
A multi-criteria decision model is developed that considers simultaneously the impact of three dimensions of 3BL approach and their sub-dimensions on the supplier selection decision. The proposed model is evaluated for a large white goods manufacturer using the analytic network process (ANP) approach.
Findings
The ANP considers the impact of variables, sub-variables, and their interdependencies simultaneously. The outcome of the model is the relative priorities for the firms considered as potential suppliers.
Practical implications
This research was conducted in one of the largest developing economies. The impact of integrating sustainability would be widespread due to the huge market in which the company operates. The results of this research can provide support to the decision makers in arriving at an optimal decision considering all sustainability dimensions.
Originality/value
The novelty of the approach lies in the application of multi-criteria model integrating sustainability dimensions with a feedback effect for supplier selection. The case company would benefit by showing its commitment toward environment and social responsibility leading to improved brand image and sustainable business.
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Anoop Kumar Sahu, Saurav Datta and S.S. Mahapatra
Supply chains (SCs) have become increasingly vulnerable to catastrophic events/disruptions that may be natural or man-made. Hurricanes, tsunamis and floods are natural disasters…
Abstract
Purpose
Supply chains (SCs) have become increasingly vulnerable to catastrophic events/disruptions that may be natural or man-made. Hurricanes, tsunamis and floods are natural disasters, whereas man-made disasters may be strikes, terrorist attacks, etc. Failure at any point in the SC network has the potential to cause the entire network to fail. SCs must therefore be properly designed to survive well in the disruption scenario. The capability of successful survival (of the firm’s SC) against those adverse events/happenings is termed as resilience; and, the SC designed under resilience consideration is called a resilient SC. Effective supplier selection is considered as a key strategic consideration in SC management. It is felt that apart from considering traditional suppliers selection criterions, suppliers’ resiliency strategy must be incorporated while selecting a potential supplier which can provide best support to the firm even in the disaster/disruption scenario. The purpose of this paper is to focus aspects of evaluation and selection of resilience supplier by considering general as well as resiliency strategy, simultaneously.
Design/methodology/approach
In this work, subjectivity associated with ill-defined (vague) evaluation information has been tackled through logical exploration of fuzzy numbers set theory. Application of VIKOR embedded with fuzzy mathematics has been utilized here. Sensitivity analysis has been performed to reflect the effect of decision-makers’ (DM) risk bearing attitude in selecting the best potential supplier in a resilient SC. A case empirical example has also been presented.
Findings
The work attempts to focus on a decision-making procedural hierarchy towards effective supplier selection in a resilient SC. The work exhibits application potential of VIKOR method integrated with fuzzy set theory to select potential supplier based on general strategy as well as resiliency strategy. The final supplier selection score (obtained by considering general strategy) and that of obtained by analyzing resiliency strategy have been combined to get a final compromise solution. The decision-support framework thus reported here also considers DMs’ risk bearing attitude.
Practical implications
The study bears significant impact to the industry managers who are trying to adapt resiliency strategy in their SC followed by potential supplier selection in the context of resilient SC.
Originality/value
Exploration of VIKOR embedded with fuzzy set theory towards suppliers’ evaluation and selection by considering general and resiliency criteria both. The decision-support module(s) adapted in this paper considers DMs’ risk bearing attitude to arrive the best compromise solution.
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Mohamad Amin Kaviani, Amir Karbassi Yazdi, Lanndon Ocampo and Simonov Kusi-Sarpong
The 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…
Abstract
Purpose
The 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/approach
To 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.
Findings
To 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/implications
The 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/value
This 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.
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Chhabi Ram Matawale, Saurav Datta and S.S. Mahapatra
The recent global market trend is seemed enforcing existing manufacturing organizations (as well as service sectors) to improve existing supply chain systems or to take up/adapt…
Abstract
Purpose
The recent global market trend is seemed enforcing existing manufacturing organizations (as well as service sectors) to improve existing supply chain systems or to take up/adapt advanced manufacturing strategies for being competitive. The concept of the agile supply chain (ASC) has become increasingly important as a means of achieving a competitive edge in highly turbulent business environments. An ASC is a dynamic alliance of member enterprises, the formation of which is likely to introduce velocity, responsiveness, and flexibility into the manufacturing system. In ASC management, supplier/partner selection is a key strategic concern. Apart from traditional supplier/partner selection criteria; different agility-related criteria/attributes need to be taken under consideration while selecting an appropriate supplier in an ASC. The paper aims to discuss these issues.
Design/methodology/approach
Therefore, evaluation and selection of potential supplier in an ASC have become an important multi-criteria decision making problem. Most of the evaluation criteria being subjective in nature; traditional decision-making approaches (mostly dealing with objective data) fail to solve this problem. However, fuzzy set theory appears an important mean to tackle with vague and imprecise data given by the experts. In this work, application potential of the fuzzy multi-level multi-criteria decision making (FMLMCDM) approach proposed by Chu and Velásquez (2009) and Chu and Varma (2012) has been examined and compared to that of Fuzzy-techniques for order preference by similarity to ideal solution (TOPSIS) and Fuzzy-MOORA in the context of supplier selection in ASC.
Findings
It has been observed that similar ranking order appears in FMLMCDM as well as Fuzzy-TOPSIS. In Fuzzy-MOORA, the best alternative appears same as in case of FMLMCDM as well as Fuzzy-TOPSIS; but for other alternatives ranking order differs. A comparative analysis has also been made in view of working principles of FMLMCDM, Fuzzy-TOPSIS as well as Fuzzy-MOORA.
Originality/value
Application feasibility of FMLMCDM approach has been verified in comparison with Fuzzy-TOPSIS and Fuzzy-MOORA in the context of agile supplier selection.
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Jitendra Sharma and Bibhuti Bhusan Tripathy
Supplier evaluation and selection is an essential (multi-criteria decision-making) MCDM process that considers qualitative and quantitative factors. This research work attempts to…
Abstract
Purpose
Supplier evaluation and selection is an essential (multi-criteria decision-making) MCDM process that considers qualitative and quantitative factors. This research work attempts to use a MCDM technique based on merging fuzzy Technique for Order Preference by Similarity to Ideal Solution (F-TOPSIS) and Quality Function Deployment (QFD) ideas. The study attempts to find the supplier's attributes (HOWs) to accomplish its goals after determining the product's characteristics to suit the company's needs (WHATs).
Design/methodology/approach
The proposed research methodology comprises the following four steps: Step 1: Determine the product purchase requirements (“WHATs”) and those pertinent to supplier evaluation (“HOWs”). In Step 2, the relative importance of the “WHAT-HOW” correlation scores is determined and also the resulting weights of “HOWs”. In Step 3, linguistic evaluations of possible suppliers in comparison to subjective criteria are given to the decision-makers. Step 4 combines the QFD and F-TOPSIS techniques to select suppliers.
Findings
A fuzzy MCDM method based on fusing and integrating fuzzy information and QFD is presented to solve the drawbacks of conventional decision-making strategies used in supplier selection. Using the F-TOPSIS method, fuzzy positive ideal solution (FPIS) and fuzzy negative ideal solution (FNIS), the relative closeness coefficient values for all alternatives are computed. The suppliers are ranked by relating the closeness of coefficient values. This method permits the combination of ambiguous and subjective data expressed as fuzzy-defined integers or linguistic variables.
Originality/value
QFD and TOPSIS, two widely used approaches, are combined in this article to rank and evaluate suppliers based on the traits that the suppliers choose to prioritize. This study demonstrates that the method employed could address multiple-criteria decision-making scenarios in a computationally efficient manner. The effectiveness and applicability of the method are illustrated using an example.