Green supplier selection via Multiple Criteria Data Envelopment Analysis

An appropriate supplier selection and its profound effects on increasing the competitive advantage of companies has been widely discussed in supply chain management (SCM) literature. By raising environmental awareness among companies and industries they attach more importance to sustainable and green activities in selection procedures of raw material providers. The current thesis benefits from data envelopment analysis (DEA) technique to evaluate the relative efficiency of suppliers in the presence of carbon dioxide (CO2) emission for green supplier selection. We incorporate the pollution of suppliers as an undesirable output into DEA. However, to do so, two conventional DEA model problems arise: the lack of the discrimination power among decision making units (DMUs) and flexibility of the inputs and outputs weights. To overcome these limitations, we use multiple criteria DEA (MCDEA) as one alternative. By applying MCDEA the number of suppliers which are identified as efficient will be decreased and will lead to a better ranking and selection of the suppliers. Besides, in order to compare the performance of the suppliers with an ideal supplier, a “virtual” best practice supplier is introduced. The presence of the ideal virtual supplier will also increase the discrimination power of the model for a better ranking of the suppliers. Therefore, a new MCDEA model is proposed to simultaneously handle undesirable outputs and virtual DMU. The developed model is applied for green supplier selection problem. A numerical example illustrates the applicability of the proposed model.

The suppliers selection problem: a case study

The effective supplier evaluation and purchasing processes are of vital importance to business organizations, making the suppliers selection problem a fundamental key issue to their success. We consider a complex supplier selection problem with multiple products where minimum package quantities, minimum order values related to delivery costs, and discounted pricing schemes are taken into account. Our main contribution is to present a mixed integer linear programming (MILP) model for this supplier selection problem. The model is used to solve several examples including three real case studies from an electronic equipment assembly company.

A decision model for it supplier selection

En los últimos años la externalización de TI ha ganado mucha importancia en el mercado y, por ejemplo, el mercado externalización de servicios de TI sigue creciendo cada año. Ahora más que nunca, las organizaciones son cada vez más los compradores de las capacidades necesarias mediante la obtención de productos y servicios de los proveedores, desarrollando cada vez menos estas capacidades dentro de la empresa. La selección de proveedores de TI es un problema de decisión complejo. Los gerentes que enfrentan una decisión sobre la selección de proveedores de TI tienen dificultades en la elaboración de lo que hay que pensar, además en sus discursos. También de acuerdo con un estudio del SEI (Software Engineering Institute) [40], del 20 al 25 por ciento de los grandes proyectos de adquisición de TI fracasan en dos años y el 50 por ciento fracasan dentro de cinco años. La mala gestión, la mala definición de requisitos, la falta de evaluaciones exhaustivas, que pueden ser utilizadas para llegar a los mejores candidatos para la contratación externa, la selección de proveedores y los procesos de contratación inadecuados, la insuficiencia de procedimientos de selección tecnológicos, y los cambios de requisitos no controlados son factores que contribuyen al fracaso del proyecto. La mayoría de los fracasos podrían evitarse si el cliente aprendiese a comprender los problemas de decisión, hacer un mejor análisis de decisiones, y el buen juicio. El objetivo principal de este trabajo es el desarrollo de un modelo de decisión para la selección de proveedores de TI que tratará de reducir la cantidad de fracasos observados en las relaciones entre el cliente y el proveedor. La mayor parte de estos fracasos son causados por una mala selección, por parte del cliente, del proveedor. Además de estos problemas mostrados anteriormente, la motivación para crear este trabajo es la inexistencia de cualquier modelo de decisión basado en un multi modelo (mezcla de modelos adquisición y métodos de decisión) para el problema de la selección de proveedores de TI. En el caso de estudio, nueve empresas españolas fueron analizadas de acuerdo con el modelo de decisión para la selección de proveedores de TI desarrollado en este trabajo. Dos softwares se utilizaron en este estudio de caso: Expert Choice, y D-Sight. ABSTRACT In the past few years IT outsourcing has gained a lot of importance in the market and, for example, the IT services outsourcing market is still growing every year. Now more than ever, organizations are increasingly becoming acquirers of needed capabilities by obtaining products and services from suppliers and developing less and less of these capabilities in-house. IT supplier selection is a complex and opaque decision problem. Managers facing a decision about IT supplier selection have difficulty in framing what needs to be thought about further in their discourses. Also according to a study from SEI (Software Engineering Institute) [40], 20 to 25 percent of large information technology (IT) acquisition projects fail within two years and 50 percent fail within five years. Mismanagement, poor requirements definition, lack of comprehensive evaluations, which can be used to come up with the best candidates for outsourcing, inadequate supplier selection and contracting processes, insufficient technology selection procedures, and uncontrolled requirements changes are factors that contribute to project failure. The majority of project failures could be avoided if the acquirer learns how to understand the decision problems, make better decision analysis, and good judgment. The main objective of this work is the development of a decision model for IT supplier selection that will try to decrease the amount of failures seen in the relationships between the client-supplier. Most of these failures are caused by a not well selection of the supplier. Besides these problems showed above, the motivation to create this work is the inexistence of any decision model based on multi model (mixture of acquisition models and decision methods) for the problem of IT supplier selection. In the case study, nine different Spanish companies were analyzed based on the IT supplier selection decision model developed in this work. Two software products were used in this case study, Expert Choice and D-Sight.

Adaptív döntéshozatal a beszállítóválasztásban = Adaptive Decision-making in Supplier Selection

Herbert Simon, a korlátozott racionalitás elméletének megalkotója szerint a döntéshozatalunk hatékonyságát az határozza meg, hogy korlátozott kognitív kapacitásaink birtokában milyen stratégiákkal birkózunk meg a komplex környezet kihívásaival. Az erre az elméletre építő kutatások egyik alapvetése, hogy az egyéni problémamegoldási folyamat helyzetspecifikus és ez az idomulás kulcsfontosságú az eredményességben és hatékonyságban. A döntéshozó rendelkezik egy „adaptív szerszámosládával”, amelyből a megfelelő helyzetekben a megfelelő döntési eljárásokat választja. A tanulmányban a szerző egy kvalitatív kutatás eredményeire építve, a beszállítóválasztás példáján keresztül mutat be lehetséges válaszokat a keveset kutatott kérdésre: hogyan működik az adaptivitás folyamata? A tanulmány a döntési helyzethez való alkalmazkodás kialakulását vizsgálja a döntési folyamatok kognitív szintjén. ______ Herbert Simon, the author of theory of bounded rationality claimed that the results of our decision-making is defined by the approprietness of strategies with which we handle the complexity of the environment with our bounded cognitive capacities. One of the main issues or research programs building on this theory is that problem solving is situation-specific, and the adjustment of strategies to actual situational factors is crucial for the effectiveness and efficiency of decision-making. The decision-maker possesses an „adaptive toolbox”, from which he chooses the right decision tools in the right situations. The author, based on the findnings of a qualitative study, presents possible answers to the not well-elaborated question: how does the process of adaptivity work? Forming of an adaptive mechanism is in the focus.

Are supplier selection criteria going green? Case studies of companies in Brazil

Purpose - The purpose of this paper is to verify if Brazilian companies are adopting environmental requirements in the supplier selection process. Further, this paper intends to analyze whether there is a relation between the level of environmental management maturity and the inclusion of environmental criteria in the companies` selection of suppliers. Design/methodology/approach - A review of mainstream literature on environmental management, traditional criteria in the supplier selection process and the incorporation of environmental requirements in this context. The empirical study`s strategy is based on five Brazilian case studies with industrial companies. Face-to-face interviews and informal conversations are to be held, explanations made by e-mail with representatives from the purchasing, environmental management, logistics and other areas, and observation and the collection of company documents are also employed. Findings - Based on the cases, it is concluded that companies still use traditional criteria to select suppliers, such as quality and cost, and do not adopt environmental requirements in the supplier selection process in a uniform manner. Evidence found shows that the level of environmental management maturity influences the depth with which companies adopt environmental criteria when selecting suppliers. Thus, a company with more advanced environmental management adopts more formal procedures for selecting environmentally appropriate suppliers than others. Originality/value - This is the first known study to verify if Brazilian companies are adopting environmental requirements in the supplier selection process.

The application of adaptive partitioned random search in feature selection problem

Feature selection is one of important and frequently used techniques in data preprocessing. It can improve the efficiency and the effectiveness of data mining by reducing the dimensions of feature space and removing the irrelevant and redundant information. Feature selection can be viewed as a global optimization problem of finding a minimum set of M relevant features that describes the dataset as well as the original N attributes. In this paper, we apply the adaptive partitioned random search strategy into our feature selection algorithm. Under this search strategy, the partition structure and evaluation function is proposed for feature selection problem. This algorithm ensures the global optimal solution in theory and avoids complete randomness in search direction. The good property of our algorithm is shown through the theoretical analysis.

Analysis of the domain of applicability of an algorithm for a resources system selection problem for Distributed/Agile/Virtual Enterprises integration

The process of resources systems selection takes an important part in Distributed/Agile/Virtual Enterprises (D/A/V Es) integration. However, the resources systems selection is still a difficult matter to solve in a D/A/VE, as it is pointed out in this paper. Globally, we can say that the selection problem has been equated from different aspects, originating different kinds of models/algorithms to solve it. In order to assist the development of a web prototype tool (broker tool), intelligent and flexible, that integrates all the selection model activities and tools, and with the capacity to adequate to each D/A/V E project or instance (this is the major goal of our final project), we intend in this paper to show: a formulation of a kind of resources selection problem and the limitations of the algorithms proposed to solve it. We formulate a particular case of the problem as an integer programming, which is solved using simplex and branch and bound algorithms, and identify their performance limitations (in terms of processing time) based on simulation results. These limitations depend on the number of processing tasks and on the number of pre-selected resources per processing tasks, defining the domain of applicability of the algorithms for the problem studied. The limitations detected open the necessity of the application of other kind of algorithms (approximate solution algorithms) outside the domain of applicability founded for the algorithms simulated. However, for a broker tool it is very important the knowledge of algorithms limitations, in order to, based on problem features, develop and select the most suitable algorithm that guarantees a good performance.

Guidelines for supplier selection and performance evaluation in the case-company

Tutkielmantavoitteena oli luoda ohjeistus toimittajan valinnasta ja suorituskyvyn arvioinnista case - yrityksen, Exel Oyj:n, käyttöön. Ohjeistuksen tarkoituksena oli ollalähtökohtana toimittajan valinta- ja suoristuskyvyn arviointiprosessien kehittämisessä. Tutkielma keskittyy esittelemään toimittajan valintakriteereitä ja toimittajan suorituskyvyn arviointikriteereitä. Kriteerit valittiin ja analysoitiin teorian ja empirian avulla ja kriteereistä tehtiin selkeät listaukset. Näitä listoja käytettiin avuksi pohdittaessa uusia valintakriteereitä ja suorituskyvyn arviointikriteereitä, joita case -yritys voi jatkossa käyttää. Tutkielmassa käytiin läpi myös toimittajan valintaprosessi jaapuvälineitä ja mittareita toimittajan arviointiin liittyen. Empiirisen aineiston keruu toteutettiin haastattelemalla hankintapäällikköä sekä keräämällä tietoavuosikertomuksesta ja yrityksen internet sivuilta. Tutkielman tuloksena saatiinlistauksia kriteereistä, joita yritys voi hyödyntää jatkossa sekä listaukset kriteereistä, jotka valittiin alustavasti yrityksen käyttöön.

Modelling requirements of supplier selection for benchmarking service provision

Supplier selection has a great impact on supply chain management. The quality of supplier selection also affects profitability of organisations which work in the supply chain. As suppliers can provide variety of services and customers demand higher quality of service provision, the organisation is facing challenges for making the right choice of supplier for the right needs. The existing methods for supplier selection, such as data envelopment analysis (DEA) and analytical hierarchy process (AHP) can automatically perform selection of competitive suppliers and further decide winning supplier(s). However, these methods are not capable of determining the right selection criteria which should be derived from the business strategy. An ontology model described in this paper integrates the strengths of DEA and AHP with new mechanisms which ensure the right supplier to be selected by the right criteria for the right customer's needs.

U-curve: A branch-and-bound optimization algorithm for U-shaped cost functions on Boolean lattices applied to the feature selection problem

This paper presents the formulation of a combinatorial optimization problem with the following characteristics: (i) the search space is the power set of a finite set structured as a Boolean lattice; (ii) the cost function forms a U-shaped curve when applied to any lattice chain. This formulation applies for feature selection in the context of pattern recognition. The known approaches for this problem are branch-and-bound algorithms and heuristics that explore partially the search space. Branch-and-bound algorithms are equivalent to the full search, while heuristics are not. This paper presents a branch-and-bound algorithm that differs from the others known by exploring the lattice structure and the U-shaped chain curves of the search space. The main contribution of this paper is the architecture of this algorithm that is based on the representation and exploration of the search space by new lattice properties proven here. Several experiments, with well known public data, indicate the superiority of the proposed method to the sequential floating forward selection (SFFS), which is a popular heuristic that gives good results in very short computational time. In all experiments, the proposed method got better or equal results in similar or even smaller computational time. (C) 2009 Elsevier Ltd. All rights reserved.

Is what you say what you do? Analyzing and comparing the effect of buyer-supplier relationship in the Brazilian and Chinese supplier selection criteria

Choosing properly and efficiently a supplier has been challenging practitioners and academics since 1960’s. Since then, countless studies had been performed and relevant changes in the business scenario were considered such as global sourcing, quality-orientation, just-in-time practices. It is almost consensus that quality should be the selection driver, however, some polemical findings questioned this general agreement. Therefore, one of the objectives of the study was to identify the supplier selection criteria and bring this discussion back again. Moreover, Dickson (1966) suggested existing business relationship as selection criterion, then it was reviewed the importance of business relationship for the company and noted a set of potential negative effects that could rise from it. By considering these side effects of relationship, this research aimed to investigate how the relationship could influence the supplier selection and how its harmful effects could affect the selection process. The impact of this phenomenon was investigated cross-nationally. The research strategy adopted was a controlled experiment via vignette combined with discrete choice analysis. The data collections were performed in China and Brazil. By examining the results, it could be drawn five major findings. First, when purchasers were asked to declare their supplier selection priorities, quality was stated as the most important independently of country and relationship. This result was consistent with diverse studies since 60’s. However, when purchasers were exposed to a multi-criteria trade-off situation, their actual selection priorities deviate from what they had declared. In the actual decision-making without influence of buyer-supplier relationship, Brazilian purchasers focused on price and Chinese buyers prioritized delivery then price. This observation reinforced some controversial prior studies of Verma & Pullman (1998) and Hirakubo & Kublin (1998). Second, through the introduction of the buyer-supplier relationship (operationalized via relational capital) in the supplier selection process, this research extended the existing studies and found that Brazilian buyers still focused on price. The relationship became just another criterion for supplier selection such as quality and delivery. However, from the Chinese sample, the results suggested that quality was totally discarded and the decision was majorly made through price and relationship. The third finding suggested that relational capital could legitimate the quality and sustainability of the supplier and replaces these selection criteria and made the decisional task less complex. Additionally, with the relational capital, the decision-makings were associated to few biases such as availability cognition, commitment, confirmatory and perceived biases. By analyzing the purchasers’ behavior, relational capital inducted buyers of both countries to relax in their purchasing requirements (quality, delivery and sustainability) leading to potential negative effects. In the Brazilian sample, the phenomenon of willing to pay a higher price for a lower quality offer demonstrated to be a potential counterproductive and suboptimal decision. Finally, the last finding was associated to the cultural effect on the buyers’ decisions. From the outcome, it is possible to observe that if a purchaser’s cultural background is more relation-oriented, the more he will tend to use relational capital as a decision heuristic, thus, the purchaser will be more susceptible to the potential relationship’s side effects

Are supplier selection criteria going green? Case studies of companies in Brazil

Purpose - The purpose of this paper is to verify if Brazilian companies are adopting environmental requirements in the supplier selection process. Further, this paper intends to analyze whether there is a relation between the level of environmental management maturity and the inclusion of environmental criteria in the companies' selection of suppliers.Design/methodology/approach - A review of mainstream literature on environmental management, traditional criteria in the supplier selection process and the incorporation of environmental requirements in this context. The empirical study's strategy is based on five Brazilian case studies with industrial companies. Face-to-face interviews and informal conversations are to be held, explanations made by e-mail with representatives from the purchasing, environmental management, logistics and other areas, and observation and the collection of company documents are also employed.Findings - Based on the cases, it is concluded that companies still use traditional criteria to select suppliers, such as quality and cost, and do not adopt environmental requirements in the supplier selection process in a uniform manner. Evidence found shows that the level of environmental management maturity influences the depth with which companies adopt environmental criteria when selecting suppliers. Thus, a company with more advanced environmental management adopts more formal procedures for selecting environmentally appropriate suppliers than others.Originality/value - This is the first known study to verify if Brazilian companies are adopting environmental requirements in the supplier selection process.

Outsourcing and acquisition models comparison related to IT supplier selection decision analysis

This paper presents a comparison of acquisition models related to decision analysis of IT supplier selection. The main standards are: Capability Maturity Model Integration for Acquisition (CMMI-ACQ), ISO / IEC 12207 Information Technology / Software Life Cycle Processes, IEEE 1062 Recommended Practice for Software Acquisition, the IT Infrastructure Library (ITIL) and the Project Management Body of Knowledge (PMBOK) guide. The objective of this paper is to compare the previous models to find the advantages and disadvantages of them for the future development of a decision model for IT supplier selection.

Fuel supplier selection for large scale UK bioenergy schemes

This article presents a potential method to assist developers of future bioenergy schemes when selecting from available suppliers of biomass materials. The method aims to allow tacit requirements made on biomass suppliers to be considered at the design stage of new developments. The method used is a combination of the Analytical Hierarchy Process and the Quality Function Deployment methods (AHP-QFD). The output of the method is a ranking and relative weighting of the available suppliers which could be used to improve optimization algorithms such as linear and goal programming. The paper is at a conceptual stage and no results have been obtained. The aim is to use the AHP-QFD method to bridge the gap between treatment of explicit and tacit requirements of bioenergy schemes; allowing decision makers to identify the most successful supply strategy available.

Strategic sourcing supplier selection misalignment with critical success factors:findings from multiple case studies in Germany and the United Kingdom

Strategic sourcing plays an important role in organisations' performance. Strategic sourcing has been researched extensively using empirical studies as well as review work, such as strategic sourcing importance, issues and challenges, processes, source selection criteria and framework. However, there is no research on critical success factors for strategic sourcing specific to industry and country. This research aims to qualitatively evaluate and understand the current role of strategic sourcing, the critical success factors for business performance and its relationship with strategic sourcing, and strategic supplier evaluation criteria from multiple stakeholders' perspectives specific to industry and country. This research studies twenty organisations from Germany and the United Kingdom (UK) covering two industry sectors - electronics manufacturing and construction. We consider five organisations from each industry sector and each country. The findings from twenty case studies reveal comparative analysis of strategic sourcing practices of two countries and two industries.