Purpose: This paper proposes a new model for further research on how to select criteria in supplier selection, through a literature review and analysis of the advantages and disadvantages of previously used methods.Design/methodology/approach: The methods used to select criteria in supplier selection were extracted from various online academic databases. The weaknesses and advantages of these methods were then analyzed. Based on these findings, several opportunities for improvement are proposed for further research. Finally, criteria design methods for the selection of suppliers are proposed using statistical multi-criteria decision making (S-MCDM) methods.Findings: Direction and guidance for subsequent research to select the criteria used in supplier selection, based on the advantages and disadvantages of the decision methods used.Research limitations/implications: Limitations of this study are that it is focused on the methods of criteria design in supplier selection.Practical implications: This study can provide a research direction on the selection of criteria for supplier selection.Social implications: This study provides ongoing guidance and avenues for further research.Originality/value: New ideas for working out the developmental strategy for criteria selection are provided by statistical MCDM methods in supplier selection.
In the future, researchers focusing on supplier selection are likely to use a combination of multi-criteria decision-making (MCDM) methods. The analytical hierarchy process (AHP) is often used in such combinations. The function of the AHP method in MCDM is criteria weighting. When there are a relatively large number of participants involved in an evaluation judgment, it is difficult to obtain consistent opinions. In such cases, the AHP is a useful method to obtain consistent opinions over time by repeatedly conducting pairwise comparison matrices. This study proposes a new methodology to resolve such problems. In the proposed method, the decision maker assesses the level of contribution of each criterion to the selection of suppliers. Using the proposed method, comparing the contributions of these criteria to supplier selection will always produce a consistent value. The advantage of the proposed method is that decision makers do not have to assess the degree of importance of each individual criterion. So, if there are n criteria, the decision maker has to access as much as n times. The results of this study indicate that the proposed method consistently produces a solution, without the need for repeated human judgements and without consideration of the number of criteria.
The use of the Analytical Hierarchy Process (AHP) is frequent in supplier selection. First, AHP is a pairwise comparison between criteria. If the pairwise comparisons are inconsistent, the result is invalid. Thus, the process of comparing criteria must be repeated continuously until valid results are obtained. This process takes time and costs so it is considered inefficient. This research proposes the application of the Hamilton chain process into the pairwise comparison matrix. One criterion is symbolized as a knot, while the arc is symbolized as the pairwise comparison value between the two nodes or the connected criterion. In the network model of the AHP method, each node is connected to all other nodes without exception. Whereas in the proposed method, each criterion or node is compared only once. That said, avoiding inconsistencies can be made. The consistency ratio result of the proposed method is found to be consistent
The selection of a concrete iron supplier is critical for a long-term supply chain in the infrastructure industry. Due to the participation of various qualitative and quantitative elements, the evaluation process of concrete iron supplier selection is a difficult work for decision specialists. Because uncertainty is widespread in concrete iron supplier selection challenges, improving integrated criteria selection and supplier selection procedures has proven to be one of the most efficient and superior ways to represent practical difficulties. The current study presents a novel framework for evaluating and selecting a preferred concrete iron supplier based on Factor Analysis and the ARAS (Adaptive Ratio Assessment) method, as well as the AHP (Analytical Hierarchy Process) methodology. An enhanced technique is used in the proposed method to determine the criteria weights based on expert preferences. Next, an actual case study of the concrete iron supplier selection problem is conducted in a comprehensive setting to demonstrate the effectiveness and practicability of the suggested methodology. A sensitivity analysis is also undertaken to ensure that the stated methodology is stable. Finally, the strength of the resulting result is tested by comparing it to current methodologies. The final results show that the established framework is more consistent and powerful than other approaches already in use.
The largest factories of the cocrete iron industry in Indonesia is PT. Wijaya Karya Beton Tbk. The company is faced with supplier selection problem. Each supplier has its own advantages and disadvantages, making it difficult for the company to choose the right supplier. There are many criteria that can be used in supplier selection. Based on previous research, all of the criteria are selected using factor analysis, to determine suitable criteria in the cocrete iron industry in Indonesia. Then after obtaining the criteria used, the supplier assessment is carried out using Technique for Order Preference by Similarity to Ideal Solutions (TOPSIS). The results showed that the use of factor analysis and TOPSIS methods can be used to select the right suppliers for the cocrete iron industry in Indonesia. Then there are 13 sub-criteria that are considered in selecting the right supplier at PT Wijaya Karya Beton Tbk. These sub-criteria are divided into four criteria. Azuma Co., Ltd. selected for the first best supplier and Mastex Inc. was ranked second.
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