Using Multiple Criteria Decision Making Approach to construct Key Indicators of Raw Material Supplier Selection – Taking Taiwanese Textile Company A as an Example
Date Issued
2014
Date
2014
Author(s)
Kuo, Wen-Hsiu
Abstract
Supplier selection is one of the most significant activities for purchasing departments. In today’s competitive global business environment, if a company makes great efforts to preserve its competitiveness, its decision makers need to consider the suppliers’ price, quality, service, etc. The entire purpose of supplier selection process is to decrease purchasing risk and cost, maximize value to the purchaser, and establish the intimacy and long-term relationship between buyers and suppliers.
In the textile industry, there are many factors must be considered when purchasing raw materials. Cost of raw materials accounts for a considerable proportion of total cost. Purchase may affects profit and operation performance this year. Supplier selection is a multiple criteria issue which contains both qualitative and quantitative factors. However, there is no rules to select raw material suppliers in practice. The purpose of this study is to describe an application of supplier selection model based on multiple criteria decision making techniques in Taiwanese textile industry. We hope that the case implementation results are of great interest both for practice application and theory research.
This study proposes a three-phase approach for supplier selection based on the multiple criteria decision making including in-depth experts interview, Fuzzy Delphi Method and analytic hierarchy process. After analyzing, the result shows that cost (0.3386) and quality (0.2013) are the critical dimensions by the preference of 13 selected senior managers in textile industry. Besides, the top 10 critical criteria among 20 criteria are shown as follows in sequence: purchase price (0.1603), inventory cost (0.0860), global climate change (0.0804), reputation (0.0754), quality consistency (0.0727), on-time delivery (0.0647), rejection rate (0.0516), financial stability (0.0484), logistics cost (0.0438), and tariffs and taxes (0.0438). It is worth noting that 4 criteria of cost dimension are all in top 10 critical criteria.
In general, international raw material supplier selection of textile industry issues consist of complex criteria and varied situation. The decision makers must have the penetrating abilities of analyzing and plentiful experience to make appropriate decisions. In this study, we developed a three-phases multiple criteria decision making technique, in-depth experts interview, Fuzzy Delphi Method and analytic hierarchy process, to obtained the criteria of supplier selection in textile industry. Our proposed model differs from previous studies, environmental problems including climate change and political stability are concerned.
Subjects
紡織產業
供應商評選
多準則決策
模糊德菲法
層級分析法
SDGs
Type
thesis
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