Partner selection in agile supply chains: a fuzzy intelligent approach

Partner selection is a fundamental issue in supply chain management as it contributes significantly to overall supply chain performance. However, such decision-making is problematic due to the need to consider both tangible and intangible factors, which cause vagueness, ambiguity and complexity. This paper proposes a new fuzzy intelligent approach for partner selection in agile supply chains by using fuzzy set theory in combination with radial basis function artificial neural network. Using these two approaches in combination enables the model to classify potential partners in the qualification phase of partner selection efficiently and effectively using very large amounts of both qualitative and quantitative data. The paper includes a worked empirical application of the model with data from 84 representative companies within the Chinese electrical components and equipment industry, to demonstrate its suitability for helping organisational decision-makers in partner selection.

[1]  Amy Hsin-I Lee,et al.  A fuzzy supplier selection model with the consideration of benefits, opportunities, costs and risks , 2009, Expert Syst. Appl..

[2]  Gülçin Büyüközkan,et al.  Selection of the strategic alliance partner in logistics value chain , 2008 .

[3]  T. Saaty.  The Analytic Network Process , 2001 .

[4]  David J. Barnes,et al.  A literature review of decision-making models and approaches for partner selection in agile supply chains , 2011 .

[5]  Desheng Dash Wu,et al.  Fuzzy multi-objective programming for supplier selection and risk modeling: A possibility approach , 2010, Eur. J. Oper. Res..

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

[7]  Juliang Zhang,et al.  Supplier selection and purchase problem with fixed cost and constrained order quantities under stochastic demand , 2011 .

[8]  S. H. Ghodsypour,et al.  A weighted additive fuzzy multiobjective model for the supplier selection problem under price breaks in a supply Chain , 2009 .

[9]  Atakan Yücel,et al.  An integrated fuzzy-lp approach for a supplier selection problem in supply chain management , 2009, Expert Syst. Appl..

[10]  Cevriye Gencer,et al.  Analytic network process in supplier selection: A case study in an electronic firm , 2007 .

[11]  H. S. Wang.  Configuration change assessment: Genetic optimization approach with fuzzy multiple criteria for part supplier selection decisions , 2008, Expert Syst. Appl..

[12]  S. Cavusgil,et al.  Selecting foreign distributors: An expert systems approach , 1995 .

[13]  Sheng Chen,et al.  A clustering technique for digital communications channel equalization using radial basis function networks , 1993, IEEE Trans. Neural Networks.

[14]  R. Shankar,et al.  An integrated approach using utility theory and chance-constrained programming for supplier quota allocation , 2006 .

[15]  William G. Ferrell,et al.  A methodology for selection problems with multiple, conflicting objectives and both qualitative and quantitative criteria , 2003 .

[16]  Drakoulis Martakos,et al.  Supplier selection in electronic marketplaces using satisficing and fuzzy AHP , 2010, Expert Syst. Appl..

[17]  Andreas C. Georgiou,et al.  A goal programming model for partner selection decisions in international joint ventures , 2002, Eur. J. Oper. Res..

[18]  David J. Barnes,et al.  Supplier selection in agile supply chains: An information-processing model and an illustration , 2009 .

[19]  D. Towill,et al.  Supply chain migration from lean and functional to agile and customised , 2000 .

[20]  Bimal Nepal,et al.  Integrated fuzzy logic-based model for product modularization during concept development phase , 2005 .

[21]  K. L. Choya,et al.  Design of an intelligent supplier relationship management system : a hybrid case based neural network approach , 2015 .

[22]  Bimal Nepal,et al.  An integrated fuzzy-goal-programming-based framework for selecting suppliers in strategic alliance formation , 2008 .

[23]  Selin Soner Kara,et al.  Supplier selection with an integrated methodology in unknown environment , 2011, Expert Syst. Appl..

[24]  Ching-Torng Lin,et al.  Agility index in the supply chain , 2006 .

[25]  Michael G. Harvey,et al.  A systematic assessment of potential international strategic alliance partners , 1995 .

[26]  Ramayya Krishnan,et al.  A hybrid approach to supplier selection for the maintenance of a competitive supply chain , 2008, Expert Syst. Appl..

[27]  Ludmil Mikhailov,et al.  Fuzzy analytical approach to partnership selection in formation of virtual enterprises , 2002 .

[28]  Selin Soner Kara,et al.  Long term supplier selection using a combined fuzzy MCDM approach: A case study for a telecommunication company , 2009, Expert Syst. Appl..

[29]  P. Humphreys,et al.  An investigation into supplier development activities and their influence on performance in the Chinese electronics industry , 2011 .

[30]  Mithat Zeydan,et al.  A combined methodology for supplier selection and performance evaluation , 2011, Expert Syst. Appl..

[31]  H. Zimmermann,et al.  Fuzzy Set Theory and Its Applications , 1993 .

[32]  David J. Barnes,et al.  An analytic network process-mixed integer multi-objective programming model for partner selection in agile supply chains , 2009 .

[33]  A. Amida,et al.  Fuzzy multiobjective linear model for supplier selection in a supply chain , 2015 .

[34]  Paul E. Green,et al.  Vendor Evaluation Using Cluster Analysis , 1969 .

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

[36]  Chao Ou-Yang,et al.  A neural networks approach for forecasting the supplier's bid prices in supplier selection negotiation process , 2009, Expert Syst. Appl..

[37]  Atakan Yücel,et al.  A weighted additive fuzzy programming approach for multi-criteria supplier selection , 2011, Expert Syst. Appl..

[38]  Chun-Wei R. Lin,et al.  A fuzzy strategic alliance selection framework for supply chain partnering under limited evaluation resources , 2004, Comput. Ind..

[39]  Vito Albino,et al.  A neural network application to subcontractor rating in construction firms , 1998 .

[40]  M. Y. Bayrak,et al.  A fuzzy approach method for supplier selection , 2007 .

[41]  David Simchi-Levi,et al.  Sustainable supply chain design: a closed-loop formulation and sensitivity analysis , 2012 .

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

[43]  Gülçin Büyüközkan,et al.  Evaluation of the green supply chain management practices: a fuzzy ANP approach , 2012 .

[44]  Wen Lea Pearn,et al.  Analytic network process (ANP) approach for product mix planning in semiconductor fabricator , 2005 .

[45]  Chong Wu,et al.  A dynamic feedback model for partner selection in agile supply chains , 2012 .

[46]  Amin Chaabane,et al.  Designing supply chains with sustainability considerations , 2011 .

[47]  Ashutosh Sarkar,et al.  Evaluation of supplier capability and performance: A method for supply base reduction , 2006 .

[48]  Manoj Kumar Tiwari,et al.  Global supplier selection: a fuzzy-AHP approach , 2008 .

[49]  Tao Yang,et al.  Risk adjusted multicriteria supplier selection models with applications , 2010 .

[50]  Gunjan Soni,et al.  Evaluating reliability and validity of lean, agile and leagile supply chain constructs in Indian manufacturing industry , 2012 .

[51]  Chen-Tung Chen,et al.  A fuzzy approach for supplier evaluation and selection in supply chain management , 2006 .

[52]  Weijun Xia,et al.  Supplier selection with multiple criteria in volume discount environments , 2007 .

[53]  S. Vinodh,et al.  Application of fuzzy analytic network process for supplier selection in a manufacturing organisation , 2011, Expert Syst. Appl..

[54]  D Garrison.  Methodology of selection. , 1978, Journal of medical education.

[55]  S. Farid Mousavi,et al.  Group decision making process for supplier selection with VIKOR under fuzzy environment , 2010, Expert Syst. Appl..

[56]  Min Huang,et al.  Genetic algorithm solution for a risk-based partner selection problem in a virtual enterprise , 2003, Comput. Oper. Res..

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

[58]  Ahmad Makui,et al.  A conceptual model for measuring supply chain's performance , 2012 .

[59]  Seyed Hassan Ghodsypour,et al.  Vendor selection and order allocation using an integrated fuzzy case-based reasoning and mathematical programming model , 2009 .

[60]  Zhen-Hua Che.  A TWO-PHASE HYBRID APPROACH TO SUPPLIER SELECTION THROUGH CLUSTER ANALYSIS WITH MULTIPLE DIMENSIONS , 2010 .

[61]  Ying Dong,et al.  Synthesis, Evaluation, and Selection of Parts Design Scheme in Supplier Involved Product Development , 2005, Concurr. Eng. Res. Appl..

[62]  R. J. Kuo,et al.  Developing a supplier selection system through integrating fuzzy AHP and fuzzy DEA: a case study on an auto lighting system company in Taiwan , 2010 .

[63]  Madeleine Järsjö,et al.  Purchasing Must Become Supply Management , 2013 .

[64]  David J. Barnes,et al.  Formulating partner selection criteria for agile supply chains: A Dempster-Shafer belief acceptability optimisation approach , 2010 .

[65]  G. Kannan,et al.  Design of an integrated supplier selection and multi-echelon distribution inventory model in a built-to-order supply chain environment , 2006 .

[66]  Joseph Sarkis,et al.  A framework for designing efficient value chain networks , 1999 .

[67]  W. B. Lee,et al.  An intelligent supplier management tool for benchmarking suppliers in outsource manufacturing , 2002, Expert Syst. Appl..

[68]  Gülsen Aydin Keskin,et al.  The Fuzzy ART algorithm: A categorization method for supplier evaluation and selection , 2010, Expert Syst. Appl..

[69]  Ming-Hung Shu,et al.  Supplier selection using fuzzy quality data and their applications to touch screen , 2010, Expert Syst. Appl..

[70]  M. Bevilacquaa,et al.  A fuzzy-QFD approach to supplier selection , 2015 .

[71]  Edward Levitas,et al.  Selecting partners for successful international alliances: Examination of U.S. and Korean firms , 1997 .

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

[73]  Hans-Jürgen Zimmermann,et al.  Fuzzy Set Theory - and Its Applications , 1985 .

[74]  Z. H. Che,et al.  An integrated model for supplier selection decisions in configuration changes , 2007, Expert Syst. Appl..

[75]  John Moody,et al.  Fast Learning in Networks of Locally-Tuned Processing Units , 1989, Neural Computation.

[76]  Gülçin Büyüközkan,et al.  A novel fuzzy multi-criteria decision framework for sustainable supplier selection with incomplete information , 2011, Comput. Ind..

[77]  Jennifer Blackhurst,et al.  Supplier evaluation and selection: an augmented DEA approach , 2009 .

[78]  Meng-Jong Goan,et al.  Selection process in logistics outsourcing – a view from third party logistics provider , 2011 .

[79]  D. Barnes,et al.  A model for continuous improvement in supplier selection in agile supply chains , 2009 .

[80]  Nursel Öztürk,et al.  Supplier selection and performance evaluation in just-in-time production environments , 2011, Expert Syst. Appl..

[81]  Gilles Faÿ,et al.  Características inmunológicas claves en la fisiopatología de la sepsis. Infectio , 2009 .

[82]  Yadong Lu,et al.  Joint venture success in China: How should we select a good partner? , 1998 .

[83]  Eric W.T. Ngai,et al.  Critical success factors of web-based supply-chain management systems: an exploratory study , 2004 .

[84]  Chang-Lin Yang,et al.  Improving supplier performance using a comprehensive scheme , 2010 .