Supplier selection using grey relational analysis

Abstract

Selection of appropriate suppliers in supply chain must be based on supplier evaluation and should be done according to various criteria. To respond to increasing competition, shortening product life cycles and rapidly changing customer preferences, many organizations focus on the supply chain as a means to achieve long-term competitive advantage. One of the most important components of the supply chain management is ranking and selection of suppliers and this process is essentially a problem of multi-criteria decision making. Supplier selection issues are complex issues that may require many qualitative and quantitative aspects. In this regard, the grey relational analysis method is applied to select appropriate supplier. First, the Supplier selection criteria are identified and then the grey relational analysis technique is used to determine weights of the criteria. Software application designed to make the process of grey relational analysis; this software performs all calculations and identifies the best option.

Keywords

References

[1]  رزمی ج.، اکبری جوکار م.ر.، کرباسیان س.؛ "ارائه یک مدل پشتیبانی تصمیم­گیری جهت برنامه­ ریزی، ارزیابی و انتخاب بازار در زنجیره تأمین"؛ فصلنامه پژوهشنامه بازرگانی، ش 30، 1383.
[2]  موسی­خانی م.، نایبی ا.، بخشی ج.؛ "ارائه یک متدولوژی فازی جهت ارزیابی عملکرد تأمین­ کنندگان در فرآیند برون­سپاری"؛ نشریه مدیریت دانش، ش 77، 1386.
[3]     Dickson G.W.; “An analysis of vendor selection systems and decisions”; Journal of Purchasing, Vol. 2, No. 1, 1966.
[4]     Choi T.Y., Halty J.L., “An exploration of supplier selection practices across the supply chain”. Journal of Operations Management. Vol.14, No.4, pp 333-343, 1996.
[5]     Boer L., De Labro E., Morlacchi P., “A review of methods supporting supplier selection”. European Journal of Purchasing & Supply Management, Vol. 7, No. 2, pp.75-89, 2001.
[6]     Ghodsypour S.H., O’Brien C., “A decision support system for supplier selection using an integrated analytic hierarchy process and linear programming”. International Journal of Production Economics, Vol. 56-57, pp. 199-212, 1998.
[7]     Karpak B., Kumcu E., Kasuganti R.R., “Purchasing materials in the supply chain: managing a multi-objective task”. European Journal of Purchasing & Supply Management, Vol. 7, No.3, pp.209-216, 2001.
[8]     Akarte M.M., Surendra N.V., Ravi B., Rangaraj N., “Web based casting supplier evaluation using analytical hierarchy process”. The Journal of the Operational Research Society, Vol. 52, pp 511, 2001.
[9]     Kahraman C., Cebeci U., Ulukan Z., “Multi-criteria supplier selection using fuzzy AHP”. Logistics Information Management, Vol. 16 No. 6, pp 382-394, 2003.
[10] Zaim S., Sevkii M., Tarim M. (2003). “Fuzzy analytic hierarchy base approach for supplier selection”. Logistics Information Management, Vol. 12, No.3/4, pp.147.
[11] Weber C.A., Current J.R., “A multi objective approach to vendor selection”. European Journal of Operational Research, Vol. 68, pp. 173-184, 1993.
[12] Bhutta K.S., Huq F., “supplier selection problem: a comparison of the total cost of ownership and analytical hierarchy process approaches”, supply chain management: An international journal 7, pp.126-135, 2002.
[13] Handfield R.B., Walton S.V., Sroufe R., Melynyk S.A., “Applying environmental criteria to supplier assessment: AHP”, European Journal of Operational Research, Vol. 141, 2002.
[14] Cebi F., Bayraktar D., “An integrated approach for supplier selection”. Logistics Information Management, Vol. 16, No. 6, pp.395, 2003.
[15] Dogan I., Sahin U., “Supplier selection using activity-based costing and fuzzy present-worth techniques”. Logistics Information Management, Vol. 16, No. 6, pp.420, 2003.
[16] Deng, J.L., “The Introduction to Grey System Theory,” The Journal of Grey System, Vol. 1, No. 1, pp.1-24, 1989.
[17] Yang C.C., Chen B.S., "Supplier selection using combined analytical hierarchy process and grey relational analysis", Journal of Manufacturing Technology Management 17, pp. 926-941, 2006.

Files

History

  • Receive Date: 28 November 2012
  • Revise Date: 21 December 2012
  • Accept Date: 31 December 2012
  • Publish Date: 18 February 2013

Share

How to cite

Statistics