Strategic Evaluation and Selection of Pharmaceutical Suppliers BOCR -Based Using Fuzzy Multi Criteria Decision Making
Subject Areas : medical documentsalireza anvari 1 , Reihane Reihani 2
1 - Assistant Professor, Department of Management, Shiraz Branch, Islamic Azad University, Shiraz, Iran
2 - M.Sc, Department of Management, Shiraz Branch, Islamic Azad University, Shiraz, Iran
Keywords: Pharmaceutical Suppliers, pharmacies, Supply chain, health system, BOCR structure,
Abstract :
Introduction: it has been an important challenge; how to supply raw materials and select suppliers in the health supply chain. The pharmaceutical industry is part of these challenges, and there is no specific mechanism for selecting pharmaceutical suppliers. Therefore, the aim of this study is to provide a model for evaluating and prioritizing pharmaceutical suppliers for pharmacies. Methods: The research method is descriptive-analytical and a field study; and the statistical population includes a group of managers of Shiraz pharmacies; statistical sample of experienced and expert managers has been selected. The measuring instruments included three researcher-made questionnaires that were provided to the respondents. Data analysis was performed in two descriptive and analytical sections using BOCR structure and fuzzy MCDM method. Weighing the criteria of suppliers, the ranking of suppliers has been done based on the set criteria. Results: According to the confirmation analysis factors, 14 sub-criteria were determined in four main criteria. Weight rankings showed that the first and second priorities of the indicators were "agility and speed (weight 0.111)" and “discounts cost (0.069)". Also, the results obtained from the prioritization of suppliers showed that Daroopakhsh (similarity index 1) and Hejrat (similarity index 076) companies were in the first and second priorities. Conclusion: The results showed factors such as product diversity, low defect, experience and expertise, quality, up-to-date technologies, discount in cost, credit, agility, inspection cost, shipping cost, product price, customer complaints, delay rate and supplier reputation are the most important criteria influencing the selection of drug suppliers.
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2- Hosseini S, Morshedlou N, Ivanov D, Sarder MD, Barker K, Al Khaled A. Resilient supplier selection and optimal order allocation under disruption risks. International Journal of Production Economics. 2019 Jul 1; 213:124-37.
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4- Bai C, Kusi-Sarpong S, Badri Ahmadi H, Sarkis J. Social sustainable supplier evaluation and selection: a group decision-support approach. International Journal of Production Research. 2019 Nov 17; 57(22):7046-67.
5- Scholte T. SUPPLIER SUSTAINABILITY ASSESSMENT VALIDATION AND EVALUATION MODELSY. M.A. Thesis. Eindhoven University of Technology; 2019.
6- Dickson GW. An analysis of vendor selection systems and decisions. Journal of purchasing. 1966 Feb;2(1):5-17.
7- Spekman RE. Strategic supplier selection: Understanding long-term buyer relationships. Business horizons. 1988 Jul 1;31(4):75-81.
8- Tracey M, Tan CL. Empirical analysis of supplier selection and involvement, customer satisfaction, and firm performance. Supply Chain Management: An International Journal. 2001 Oct 1.
9- Esposito E, Passaro R. Evolution of the supply chain in the Italian railway industry. Supply Chain Management: An International Journal. 2009 Jun 19;(14)4: 303–313.
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11- Abdel-Basset M, Manogaran G, Gamal A, Smarandache F. A hybrid approach of neutrosophic sets and DEMATEL method for developing supplier selection criteria. Design Automation for Embedded Systems. 2018 Sep 1;22(3):257-78.
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13- Taghvaee sichani H, Esmaeilian M. Evaluation and ranking of suppliers using a combined approach of Kano and TOPSIS methods in a fuzzy environment (Case study of Goldaro Pharmaceutical Company), 2nd International Conference on Industrial Management, Babolsar, Mazandaran University, Iran. 2017, 18 & 20 April. .[in Persian].
14- Abbdini A, Irani R, Yzdani HR. Identify and prioritize the critical success factors in the drug supply and distribution chain using the Demitel technique. Journal of Paramedical School of Tehran University of Medical Sciences (Payavard Salamat), 2019; 13(1): 45-59. [in Persian].
15- Sabbaghi MM. A Supplier Selection Model Emphasizing the Project Risk Management in Drug Production in Pharmaceutical Industry. Tehnički glasnik. 2020 Jun 11;14(2):111-20.
16- Torres-Ruiz A, Ravindran AR. Use of interval data envelopment analysis, goal programming and dynamic eco-efficiency assessment for sustainable supplier management. Computers & Industrial Engineering. 2019 May 1; 131:211-26.
17- Saaty TL, Vargas LG. The decision by the US congress on China’s trade status: a multicriteria analysis. In Models, Methods, Concepts & Applications of the Analytic Hierarchy Process 2001 (pp. 305-317). Springer, Boston, MA.
18- Saaty TL, Ozdemir M. Negative priorities in the analytic hierarchy process. Mathematical and computer modeling. 2003 May 1; 37(9-10):1063-75.
19- Liang TF. Fuzzy multi-objective production/distribution planning decisions with multi-product and multi-time period in a supply chain. Computers & Industrial Engineering. 2008 Oct 1;55(3):676-94.
20- Yazgan HR, Boran S, Goztepe K. Selection of dispatching rules in FMS: ANP model based on BOCR with choquet integral. The International Journal of Advanced Manufacturing Technology. 2010 Jul 1;49(5-8):785-801.
21- Fashoto SG, Akinnuwesi B, Owolabi O, Adelekan D. Decision support model for supplier selection in healthcare service delivery using analytical hierarchy process and artificial neural network. African journal of business Management. 2016 May 14;10(9):209-32.
22- Jiamruangjarus P, Naenna T. An integrated multi-criteria decision-making methodology for conveyor system selection. Cogent Engineering. 2016 Dec 31; 3(1):1158515.
23- Mu E. Using AHP BOCR analysis for experiential business education and prioritisation of international opportunities. International Journal of Business and Systems Research. 2016; 10(2-4):364-93.
24- Gedela RK, Mohan KK, Prasad VK. Application of BOCR models in service oriented architecture (SOA): study on model validation through quantification for QoS considerations. International Journal of System Assurance Engineering and Management. 2018 Dec 1;9(6):1346-54.
25- Ali SM, Burney SA, Khan SY. Fuzzy-AHP-TOPSIS: An integrated multi-criteria decision support system for supplier selection in Pakistan’s textile industry. IJCSNS. 2020 Apr;20(4):91.
26- Ador MS, Rahman MT, Ahmed S. Comparison of Fuzzy-AHP and AHP Approach for Supplier Evaluation and Selection in a Cement Manufacturing Company. 2020: 10, 37-63
27- Wardayanti A, Zakaria R, Sutopo W, Louhenapessy BB. Supplier Selection Model of the Lithium-ion Battery using Fuzzy AHP and Analysis of BOCR. International Journal of Sustainable Transportation. 2018 Apr;1(1):1-8.
28- Wang Y. The Selection of Prefabricated Components Supply Partners Based on BOCR-TOPSIS Method. Revista de la Facultad de Ingeniería. 2017;32(5):197-208.
29- Safaie N, Piroozfar S, Golrizgashti S. Identifying and Ranking Supply Chain Management Damages Using Analytic Network Process (FMCG Case Study). International Journal of Industrial Engineering & Production Research. 2019 Sep 1;30(3):313-27.
_||_1- Jiamruangjarus P, Naenna T. An integrated multi-criteria decision-making methodology for conveyor system selection. Cogent Engineering. 2016 Dec 31;3(1):1158515.
2- Hosseini S, Morshedlou N, Ivanov D, Sarder MD, Barker K, Al Khaled A. Resilient supplier selection and optimal order allocation under disruption risks. International Journal of Production Economics. 2019 Jul 1; 213:124-37.
3- Ting SC, Cho DI. An integrated approach for supplier selection and purchasing decisions. Supply Chain Management: An International Journal. 2008 Mar 14.
4- Bai C, Kusi-Sarpong S, Badri Ahmadi H, Sarkis J. Social sustainable supplier evaluation and selection: a group decision-support approach. International Journal of Production Research. 2019 Nov 17; 57(22):7046-67.
5- Scholte T. SUPPLIER SUSTAINABILITY ASSESSMENT VALIDATION AND EVALUATION MODELSY. M.A. Thesis. Eindhoven University of Technology; 2019.
6- Dickson GW. An analysis of vendor selection systems and decisions. Journal of purchasing. 1966 Feb;2(1):5-17.
7- Spekman RE. Strategic supplier selection: Understanding long-term buyer relationships. Business horizons. 1988 Jul 1;31(4):75-81.
8- Tracey M, Tan CL. Empirical analysis of supplier selection and involvement, customer satisfaction, and firm performance. Supply Chain Management: An International Journal. 2001 Oct 1.
9- Esposito E, Passaro R. Evolution of the supply chain in the Italian railway industry. Supply Chain Management: An International Journal. 2009 Jun 19;(14)4: 303–313.
10- Shemshadi A, Shirazi H, Toreihi M, Tarokh MJ. A fuzzy VIKOR method for supplier selection based on entropy measure for objective weighting. Expert Systems with Applications. 2011 Sep 15;38(10):12160-7. [in Persian].
11- Abdel-Basset M, Manogaran G, Gamal A, Smarandache F. A hybrid approach of neutrosophic sets and DEMATEL method for developing supplier selection criteria. Design Automation for Embedded Systems. 2018 Sep 1;22(3):257-78.
12- Bordbar MA, Noorbakhsh I, Cheraghi Badi S, Nasr Esfahani A. Prioritize and select suppliers of specific drugs using the AHP hierarchical analysis process method (Oct 28), Third International Accounting and Management Conference. Mehr Ishraq Conference, Tehran.2014. [in Persian].
13- Taghvaee sichani H, Esmaeilian M. Evaluation and ranking of suppliers using a combined approach of Kano and TOPSIS methods in a fuzzy environment (Case study of Goldaro Pharmaceutical Company), 2nd International Conference on Industrial Management, Babolsar, Mazandaran University, Iran. 2017, 18 & 20 April. .[in Persian].
14- Abbdini A, Irani R, Yzdani HR. Identify and prioritize the critical success factors in the drug supply and distribution chain using the Demitel technique. Journal of Paramedical School of Tehran University of Medical Sciences (Payavard Salamat), 2019; 13(1): 45-59. [in Persian].
15- Sabbaghi MM. A Supplier Selection Model Emphasizing the Project Risk Management in Drug Production in Pharmaceutical Industry. Tehnički glasnik. 2020 Jun 11;14(2):111-20.
16- Torres-Ruiz A, Ravindran AR. Use of interval data envelopment analysis, goal programming and dynamic eco-efficiency assessment for sustainable supplier management. Computers & Industrial Engineering. 2019 May 1; 131:211-26.
17- Saaty TL, Vargas LG. The decision by the US congress on China’s trade status: a multicriteria analysis. In Models, Methods, Concepts & Applications of the Analytic Hierarchy Process 2001 (pp. 305-317). Springer, Boston, MA.
18- Saaty TL, Ozdemir M. Negative priorities in the analytic hierarchy process. Mathematical and computer modeling. 2003 May 1; 37(9-10):1063-75.
19- Liang TF. Fuzzy multi-objective production/distribution planning decisions with multi-product and multi-time period in a supply chain. Computers & Industrial Engineering. 2008 Oct 1;55(3):676-94.
20- Yazgan HR, Boran S, Goztepe K. Selection of dispatching rules in FMS: ANP model based on BOCR with choquet integral. The International Journal of Advanced Manufacturing Technology. 2010 Jul 1;49(5-8):785-801.
21- Fashoto SG, Akinnuwesi B, Owolabi O, Adelekan D. Decision support model for supplier selection in healthcare service delivery using analytical hierarchy process and artificial neural network. African journal of business Management. 2016 May 14;10(9):209-32.
22- Jiamruangjarus P, Naenna T. An integrated multi-criteria decision-making methodology for conveyor system selection. Cogent Engineering. 2016 Dec 31; 3(1):1158515.
23- Mu E. Using AHP BOCR analysis for experiential business education and prioritisation of international opportunities. International Journal of Business and Systems Research. 2016; 10(2-4):364-93.
24- Gedela RK, Mohan KK, Prasad VK. Application of BOCR models in service oriented architecture (SOA): study on model validation through quantification for QoS considerations. International Journal of System Assurance Engineering and Management. 2018 Dec 1;9(6):1346-54.
25- Ali SM, Burney SA, Khan SY. Fuzzy-AHP-TOPSIS: An integrated multi-criteria decision support system for supplier selection in Pakistan’s textile industry. IJCSNS. 2020 Apr;20(4):91.
26- Ador MS, Rahman MT, Ahmed S. Comparison of Fuzzy-AHP and AHP Approach for Supplier Evaluation and Selection in a Cement Manufacturing Company. 2020: 10, 37-63
27- Wardayanti A, Zakaria R, Sutopo W, Louhenapessy BB. Supplier Selection Model of the Lithium-ion Battery using Fuzzy AHP and Analysis of BOCR. International Journal of Sustainable Transportation. 2018 Apr;1(1):1-8.
28- Wang Y. The Selection of Prefabricated Components Supply Partners Based on BOCR-TOPSIS Method. Revista de la Facultad de Ingeniería. 2017;32(5):197-208.
29- Safaie N, Piroozfar S, Golrizgashti S. Identifying and Ranking Supply Chain Management Damages Using Analytic Network Process (FMCG Case Study). International Journal of Industrial Engineering & Production Research. 2019 Sep 1;30(3):313-27.