Presentation of a multi-criteria decision making approach (BWM) for suppliers segmentation, Case Study: Dairy Companies
Subject Areas :
Industrial Management
Armin Cheraghalipour
1
*
,
Emad Roghanian
2
1 - Faculty of Industrial Engineering, K. N. Toosi university of technology
2 - Faculty of Industrial Engineering, K.N. Toosi University of Technology, Tehran, Iran
Received: 2019-03-27
Accepted : 2019-07-07
Published : 2019-08-23
Keywords:
Best-worst Method,
supplier segmentation,
Multi-Criteria Decision Making,
dairy companies,
Abstract :
Today, given the globalization of the business world, companies expanded their activities beyond the geographical boundaries of countries and continents, and entered into global markets. For this reason, on the one hand, the competitive advantage of organizations has increased, on the other hand, the supply chain is expanding and communication with its various sectors has increased. By increasing these connections and expanding supply chains, companies have become more vulnerable to risks and disruptions. Over the years, there have been many methods for evaluating and selecting suppliers, but the point that is often neglected is the segmentation of suppliers in this process. The purpose of this research is to provide an approach to supplier segmentation. Indicators of this research have been studied in two dimensions of capability and willingness. In this research, suppliers of one of the major dairy companies of Mazandaran province are evaluated using the best-worst method and these suppliers are segmented according to the selected criteria. According to the results, most of suppliers are placed in the first and fourth regions, which the results and analysis can be helpful to improve the organizations studied.
References:
Awasthi, A., Chauhan, S. S., & Goyal, S. K. (2010). A fuzzy multicriteria approach for evaluating environmental performance of suppliers. International Journal of Production Economics, 126(2), 370–378.
Bensaou, M. (1999). Portfolios of buyer-supplier relationships. Sloan Management Review, 40(4), 35–36.
Chen, C. C., Tseng, M. L., Lin, Y. H., & Lin, Z. S. (2010). Implementation of green supply chain management in uncertainty. In 2010 IEEE International Conference on Industrial Engineering and Engineering Management (pp. 260–264). IEEE.
Cheraghalipour, A., Paydar, M. M., & Hajiaghaei-keshteli, M. (2017). An Integrated Approach for Collection Center Selection in Reverse Logistic. International Journal of Engineering, TRANSACTIONS A: Basics, 30(7), 1005–1016.
Cheraghalipour, A., Paydar, M. M., & Hajiaghaei-keshteli, M. (2018). Applying a hybrid BWM-VIKOR approach to supplier selection: a case study in the Iranian agricultural implements industry. International Journal of Applied Decision Sciences, 11(3), 274–301.
Dyer, J. H., Cho, D. S., & Cgu, W. (1998). Strategic Supplier Segmentation: The Next “Best Practice” in Supply Chain Management. California Management Review, 40(2), 57–77.
Golmohammadi, D., & Mellat-Parast, M. (2012). Developing a grey-based decision-making model for supplier selection. International Journal of Production Economics, 137(2), 191–200.
Hallikas, J., Puumalainen, K., Vesterinen, T., & Virolainen, V.-M. (2005). Risk-based classification of supplier relationships. Journal of Purchasing and Supply Management, 11(2–3), 72–82.
Kaufman, A., Wood, C. H., & Theyel, G. (2000). Collaboration and technology linkages: a strategic supplier typology. Strategic Management Journal, 21(6), 649–663.
Kraljic, P. (1983). Purchasing must become supply management. Harvard Business Review, 61(5), 109–117.
Masella, C., & Rangone, A. (2000). A contingent approach to the design of vendor selection systems for different types of co‐operative customer/supplier relationships. International Journal of Operations & Production Management, 20(1), 70–84.
McIvor, R. (2008). What is the right outsourcing strategy for your process? European Management Journal, 26(1), 24–34.
Olsen, R. F., & Ellram, L. M. (1997). A portfolio approach to supplier relationships. Industrial Marketing Management, 26(2), 101–113.
Olugu, E. U., Wong, K. Y., & Shaharoun, A. M. (2011). Development of key performance measures for the automobile green supply chain. Resources, Conservation and Recycling, 55(6), 567–579.
Parasuraman, A. (1980). Vendor segmentation: An additional level of market segmentation. Industrial Marketing Management, 9(1), 59–62.
Rezaei, J. (2015). Best-worst multi-criteria decision-making method. Omega, 53, 49–57.
Rezaei, J., & Ortt, R. (2012). A multi-variable approach to supplier segmentation. International Journal of Production Research, 50(16), 4593–4611.
Rezaei, J., & Ortt, R. (2013a). Multi-criteria supplier segmentation using a fuzzy preference relations based AHP. European Journal of Operational Research, 225(1), 75–84.
Rezaei, J., & Ortt, R. (2013b). Supplier segmentation using fuzzy logic. Industrial Marketing Management, 42(4), 507–517.
Rezaei, J., Wang, J., & Tavasszy, L. (2015). Linking supplier development to supplier segmentation using Best Worst Method. Expert Systems With Applications, 42(23), 9152–9164.
Svensson, G. (2004). Supplier segmentation in the automotive industry. International Journal of Physical Distribution & Logistics Management, 34(1), 12–38.
Valipour Parkouhi, S., Safaei Ghadikolaei, A., & Fallah Lajimi, H. (2019). Resilient supplier selection and segmentation in grey environment. Journal of Cleaner Production, 207, 1123–1137.
Van Weele, A. J. (2002). Purchasing and supply chain management: analysis, planning and practice. London: International Thomson Business Press.
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Awasthi, A., Chauhan, S. S., & Goyal, S. K. (2010). A fuzzy multicriteria approach for evaluating environmental performance of suppliers. International Journal of Production Economics, 126(2), 370–378.
Bensaou, M. (1999). Portfolios of buyer-supplier relationships. Sloan Management Review, 40(4), 35–36.
Chen, C. C., Tseng, M. L., Lin, Y. H., & Lin, Z. S. (2010). Implementation of green supply chain management in uncertainty. In 2010 IEEE International Conference on Industrial Engineering and Engineering Management (pp. 260–264). IEEE.
Cheraghalipour, A., Paydar, M. M., & Hajiaghaei-keshteli, M. (2017). An Integrated Approach for Collection Center Selection in Reverse Logistic. International Journal of Engineering, TRANSACTIONS A: Basics, 30(7), 1005–1016.
Cheraghalipour, A., Paydar, M. M., & Hajiaghaei-keshteli, M. (2018). Applying a hybrid BWM-VIKOR approach to supplier selection: a case study in the Iranian agricultural implements industry. International Journal of Applied Decision Sciences, 11(3), 274–301.
Dyer, J. H., Cho, D. S., & Cgu, W. (1998). Strategic Supplier Segmentation: The Next “Best Practice” in Supply Chain Management. California Management Review, 40(2), 57–77.
Golmohammadi, D., & Mellat-Parast, M. (2012). Developing a grey-based decision-making model for supplier selection. International Journal of Production Economics, 137(2), 191–200.
Hallikas, J., Puumalainen, K., Vesterinen, T., & Virolainen, V.-M. (2005). Risk-based classification of supplier relationships. Journal of Purchasing and Supply Management, 11(2–3), 72–82.
Kaufman, A., Wood, C. H., & Theyel, G. (2000). Collaboration and technology linkages: a strategic supplier typology. Strategic Management Journal, 21(6), 649–663.
Kraljic, P. (1983). Purchasing must become supply management. Harvard Business Review, 61(5), 109–117.
Masella, C., & Rangone, A. (2000). A contingent approach to the design of vendor selection systems for different types of co‐operative customer/supplier relationships. International Journal of Operations & Production Management, 20(1), 70–84.
McIvor, R. (2008). What is the right outsourcing strategy for your process? European Management Journal, 26(1), 24–34.
Olsen, R. F., & Ellram, L. M. (1997). A portfolio approach to supplier relationships. Industrial Marketing Management, 26(2), 101–113.
Olugu, E. U., Wong, K. Y., & Shaharoun, A. M. (2011). Development of key performance measures for the automobile green supply chain. Resources, Conservation and Recycling, 55(6), 567–579.
Parasuraman, A. (1980). Vendor segmentation: An additional level of market segmentation. Industrial Marketing Management, 9(1), 59–62.
Rezaei, J. (2015). Best-worst multi-criteria decision-making method. Omega, 53, 49–57.
Rezaei, J., & Ortt, R. (2012). A multi-variable approach to supplier segmentation. International Journal of Production Research, 50(16), 4593–4611.
Rezaei, J., & Ortt, R. (2013a). Multi-criteria supplier segmentation using a fuzzy preference relations based AHP. European Journal of Operational Research, 225(1), 75–84.
Rezaei, J., & Ortt, R. (2013b). Supplier segmentation using fuzzy logic. Industrial Marketing Management, 42(4), 507–517.
Rezaei, J., Wang, J., & Tavasszy, L. (2015). Linking supplier development to supplier segmentation using Best Worst Method. Expert Systems With Applications, 42(23), 9152–9164.
Svensson, G. (2004). Supplier segmentation in the automotive industry. International Journal of Physical Distribution & Logistics Management, 34(1), 12–38.
Valipour Parkouhi, S., Safaei Ghadikolaei, A., & Fallah Lajimi, H. (2019). Resilient supplier selection and segmentation in grey environment. Journal of Cleaner Production, 207, 1123–1137.
Van Weele, A. J. (2002). Purchasing and supply chain management: analysis, planning and practice. London: International Thomson Business Press.