Supplier Selection in Hospitality Industry Using ANP

Abstract

Strategic supply chain management has gained more importance with the effect of globalization. In today's global market, well-managed supply chain is one of the most important requirements to be successful in the market. The main idea of the supply chain management is generation of good relationships between chain members to serve customers accurately. Indeed, the definitive operation levels between supply chain members determine the quality of final product/service in a supply chain. Since supply chain success highly depends on a strong collaboration between chain members, the supplier selection is a strategic decision making process which affects all supply chain performance. This strategic decision-making process involves evaluation of tangible and intangible criteria to select right suppliers with multiple objectives. Hence, supplier selection problem can be considered as a multi-criteria decision problem. In this study, the supplier selection problem is solved in a service supply chain by using one of the popular multi-criteria decision making method, analytical network process (ANP).

A Decision Support Tool for Supplier Evaluation and Selection

“…Regarding internal factors, supplier selection has been pointed out as one of the most relevant activities of the purchasing function [16,41]. Purchased materials and components represent 40-60% of production costs [46], and can be as high as 70% [41].…”

“…Furthermore, it has been stated that supplier selection decisions affect the overall performance of an organization, its cash flow, and its profitability; as such, it is a critical factor for every company's prosperity, and for maintaining a strategically competitive position [38,41,48]. Supplier selection has frequently been highlighted as a critical management decision [16] and a potential source of competitive advantage [49].…”

“…In spite of the existence of different models to represent the supplier selection process, there is a concordance between the stages identified. De Boer's model [4,50] contains four steps-problem definition, criteria formulation, qualification, and final choice-and has been a guide for a number of works [4,16,41,51]. Later, this model was complemented with more stages around three groups of decisions: previous analysis, supplier evaluation, and final decision (Figure 1).…”

“…The literature shows many different approaches or techniques to solve the problem of supplier selection and evaluation; most of the approaches are based on multi-criteria decision making frameworks [2][3][4][5][6], using two methods [7] the so-called "American School" of multi-criteria decision support [8] and the "European School" [9]. In the area of the American School, for example, Analytic Hierarchy Process (AHP) [10,11] Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) [12][13][14], Analytic Network Process (ANP) [15][16][17], VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) [18,19] or Decision-Making Trial and Evaluation Laboratory (DEMATEL) [20,21] methods demonstrated its effectiveness in supplier selection and evaluation problems. Moreover, the European School methods are extensively used in this subject and, for example, include methods such Elimination and Choice Expressing Reality (ELECTRE I) [22,23], ELECTRE II [24,25], ELECTRE III [26,27], PROMETHEE II [28][29][30] or Complex Proportional Assessment (CO-PRAS) [31,32].…”

Efficient team formation from pool of talent: comparing AHP-LP and TOPSIS-LP approach

“…It provides the facility of adjusting the weight of least or high importance criteria and alternatives. ANP in combination with DEA has been used to select an efficient project manager (Keren et al, 2014); ANP in combination with grey relational analysis has been used for green supplier selection (Hashemi et al, 2015); supplier selection in hospitality industry has been done using ANP approach (Onder and Kabadayi, 2015). Apart from personnel selection, ANP has also been used in more critical selection problems like research and development project selection (Meade and Presley, 2002), resource allocation strategy selection for air pollution treatment in China (Chen et al, 2018) and hazard identification process (Khatabakhsh et al, 2019).…”