An analysis of Supplier Selection in Manufacturing Supply Chain Management

An ever-increasing trend in today's industrial firms is to exploit outsourcing for those products and activities deemed to be outside the company's core business (Riccardo Dulmin, Valeria Mininno,2003). Vendor selection and evaluation is becoming one of the most critical activities of firm. This paper first overviews the main research of supplier selection and divides evaluation methods into 3 categories: conceptual approaches, empirical research and analytical models for vendor selection. Next, the framework for supplier selection process in supply chain management is proposed and an evaluation model of supplier selection is set up in terms of cost (price, price feasible responsibility), quality (delivery on time, defective ratio, product reliability), service (after-sales service, response to customer, training and teaching), manufacture and technological capability (manufacture capability, financial status, technological support, geographical location), reputation (history record, status in the same area, long-term relationship) and information system. Finally, this model application is demonstrated through the evaluation system from Haier company and draw general conclusions for further research

[1]  Brian G. Kingsman,et al.  Vendor rating for an entrepreneur development programme: a case study using the analytic hierarchy process method , 1999, J. Oper. Res. Soc..

[2]  A. Woodside,et al.  Industrial Purchasing Strategies: Recommendations for Purchasing and Marketing Managers , 1987 .

[3]  Madeleine E. Pullman,et al.  AN ANALYSIS OF THE SUPPLIER SELECTION PROCESS , 1998 .

[4]  Srinivas Talluri,et al.  A buyer-seller game model for selection and negotiation of purchasing bids , 2002, Eur. J. Oper. Res..

[5]  Russell Abratt,et al.  Industrial buying in high-tech markets , 1986 .

[6]  John M. Browning,et al.  Strategic Purchasing Planning , 1983 .

[7]  J. Munson,et al.  Trade-offs Under Uncertainty: Implications for Industrial Purchasers , 1991 .

[8]  Richard N. Cardozo,et al.  Experimental Study of Industrial Buyer Behavior , 1971 .

[9]  Seyed Hassan Ghodsypour,et al.  A decision support system for supplier selection using an integrated analytic hierarchy process and linear programming , 1998 .

[10]  Hilla Peretz,et al.  Ju n 20 03 Schrödinger ’ s Cat : The rules of engagement , 2003 .

[11]  W. C. Benton,et al.  Vendor Performance and Alternative Manufacturing Environments , 1990 .

[12]  R. M. Monczka,et al.  Perceived Importance of Supplier Information , 1981 .

[13]  Gary W. Dickson,et al.  AN ANALYSIS OF VENDOR SELECTION SYSTEMS AND DECISIONS , 1966 .

[14]  Riccardo Dulmin,et al.  Supplier selection using a multi-criteria decision aid method , 2003 .

[15]  Thomas Y. Choi,et al.  An exploration of supplier selection practices across the supply chain , 1996 .

[16]  Phillip L. Carter,et al.  Supplier/Customer Inventory Relationships Under Just In Time , 1990 .

[17]  Wesley J. Johnston,et al.  Industrial buying behavior , 1977 .

[18]  Srinivas Talluri,et al.  Production , Manufacturing and Logistics Vendor evaluation with performance variability : A max – min approach , 2003 .

[19]  Batoul Modarress,et al.  Just‐In‐Time Purchasing: Problems and Solutions , 1986 .

[20]  Donald R. Lehmann,et al.  Decision Criteria Used in Buying Different Categories of Products , 1982 .

[21]  Frederick A. Russ,et al.  Physical Distribution Service in Industrial Purchase Decisions , 1976 .

[22]  Binshan Lin,et al.  Logistics management in China: A case study of Haier , 2004 .

[23]  John R. Current,et al.  Non-cooperative negotiation strategies for vendor selection , 1998, Eur. J. Oper. Res..

[24]  Mark D. Treleven Single Sourcing: A Management Tool for the Quality Supplier , 1987 .

[25]  Donald R. Lehmann,et al.  Difference in Attribute Importance for Different Industrial Products , 1974 .

[26]  W. C. Benton,et al.  Vendor selection criteria and methods , 1991 .

[27]  Gary David Holt,et al.  WHICH CONTRACTOR SELECTION METHODOLOGY , 1998 .

[28]  L. D. Boer,et al.  A review of methods supporting supplier selection , 2001 .

[29]  C. K. Hahn,et al.  “Just‐In‐Time” Production and Purchasing , 1983 .

[30]  L. V. D. Wegen,et al.  Practice and promise of formal supplier selection: a study of four empirical cases , 2003 .