THE EFFECTS OF DIGITALIZATION ON SUPPLY CHAIN AND SUPPLIER SELECTION PROCESSES: THE CONTRIBUTION OF THE ANALYTICAL HIERARCHY PROCESS (AHP) APPROACH TO SUPPLIER SELECTION IN THE CASE OF A MACHINE MANUFACTURING COMPANY


Abstract views: 102 / PDF downloads: 34

Authors

  • Betül POLAT üniversite

DOI:

https://doi.org/10.5281/zenodo.10421223%20

Abstract

This research deals with the supplierselectionprocess of a machinemanufacturingcompanyusingtheAnalyticHierarchyProcess (AHP) method. The main objective of theresearch is todeterminethe main andsub-criteria in supplierselectionusing AHP andtoidentifythemostsuitablesupplier. Inthiscontext, price, quality, warranty, technical service anddeliveryweredetermined as the main criteriaforsupplierselection. Under each main criterion, sub-criteriawereformedbytakingtheopinions of thesupplymanagers of theorganization: Forprice, discount, maturity, fixedexchange rate, paymentmethod; forwarranty, warrantyperiod, return/exchange; fortechnical service, on-site service, service at thesupplier, service time; forquality, first, second, thirdquality; andfordelivery, deliverytothedoor, delivery on site.

Thestudyfoundthatquality is themostimportant main criterion, followedbyprice. Supplier-1 rankedthehighest in terms of quality, while Supplier-2 rankedthehighest in terms of price. Intheevaluationmadebyconsideringall main andsub-criteria, whilethecurrentsupplierranking of theenterprisewas T1>T2>T3>T4, it wasconcludedthatthisrankingcould be updated as T1>T3>T2>T4 as a result of AHP analysis.

Keywords:SupplyChain, SupplierSelection, SupplyChain Management

References

Aktan, Hande Erdoğan. Ürün-Tedarik Zinciri Stratejilerinin Eşleştirilmesi ve Hibrit Tedarik Zinciri Stratejisinde Sipariş Kesişim Noktasının Belirlenmesi. 2014.

Alkan, Alper Tunga. Faaliyet Tabanlı Maliyet Sistemi ve Bir Uygulama. Selçuk Üniversitesi Sosyal Bilimler Enstitüsü Dergisi, 13, 2005, 39-56.

Barney, Jay. Firm Resources and Sustained Competitive Advantage. Journal of Management, 17.1, 1991, 99-120

Bıcheno, John – Holweg, Matthias. The Lean Toolbox: The Essential Guide To Lean Transformation. Picsie Books, 2008.

Boran, Fatih Emre, vd. A Multi-Criteria Intuitionistic Fuzzy Group Decision Making For Supplier Selection With TOPSIS Method. Expert Systems With Applications, 36/8, 2009, 11363-11368.

Carr, Amelia S. – Pearson, John N. Strategically Managed Buyer–Supplier Relationships and Performance Outcomes. Journal of Operations Management, 17/5, 1999, 497-519.

Carter, Craig R. – Liane Easton, P. Sustainable Supply Chain Management: Evolution and Future Directions. International Journal of Physical Distribution & Logistics Management, 41/1, 2011, 46-62.

Chaı, Junyi – Liu, James N. K. – Nga, Eric W. T. Application of Decision-Making Techniques in Supplier Selection: A Systematic Review of Literature. Expert Systems With Applications, 40/10, 2013, 3872-3885.

Chen, Injazz J. – Paulraj, Antony – Lado, Augustine A. Strategic Purchasing, Supply Management, And Firm Performance. Journal of Operations Management, 22/5, 2004, 505-523.

Chen, Yueh-Hsiang – Chao, Ru-Jen. Supplier Selection Using Consistent Fuzzy Preference Relations. Expert Systems With Applications, 39/3, 2012, 3233-3240.

Choi, Thomas Y. – Hartley, Janet L. An Exploration of Supplier Selection Practices Across The Supply Chain. Journal of Operations Management, 14/4, 1996, 333-343.

Chopra, Sunil – Meindl, Peter. Supply Chain Management. Strategy, Planning & Operation. Gabler, 2007.

Chrıstopher, Martin – Peck, Helen – Towıll, Denis. A Taxonomy for Selecting Global Supply Chain Strategies. The International Journal of Logistics Management, 17/2, 2006, 277-287.

Chrıstopher, Martin. The Agile Supply Chain: Competing in Volatile Markets. Industrial Marketing Management, 29/1, 2000, 37-44.

Cox, Andrew. Understanding Buyer and Supplier Power: A Framework For Procurement and Suppy Competence. Journal of Supply Chain Management, 37/2, 2001.

Degraeve, Zeger – Labro, Eva – Roodhooft, Filip. An Evaluation of Vendor Selection Models From A Total Cost Of Ownership Perspective. European Journal of Operational Research, 125/1, 2000, 34-58.

Dey, Asoke – Laguardia, Paul – Srinivasan, Mahesh. Building Sustainability in Logistics Operations: A Research Agenda. Management Research Review, 34/11, 2011, 1237-1259.

Dyer, Jeffrey H. – Singh, Harbir. The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage. Academy of Management Review, 23.4, 1998, 660-679.

Ellegaard, Chris – Johansen, John – Drejer, Anders. Managing Industrial Buyer‐Supplier Relations–The Case for Attractiveness. Integrated Manufacturing Systems, 14/4, 2003, 346-356.

Ferrın, Bruce G. – Plank, Richard E. Total Cost of Ownership Models: An Exploratory Study. Journal of Supply Chain Management, 38/2, 2002, 18-29.

Ghodsypour, Seyed Hassan - O’brien, C. The Total Cost Of Logistics in Supplier Selection, Under Conditions of Multiple Sourcing, Multiple Criteria and Capacity Constraint. International Journal of Production Economics, 73/1, 2001, 15-27.

Ghodsypour, Seyed Hassan – O'brien, Christopher. A Decision Support System for Supplier Selection Using an Integrated Analytic Hierarchy Process and Linear Programming. International Journal of Production Economics, 56, 1998, 199-212.

Govından, Kannan – Soleimani, Hamed – Kannan, Devika. Reverse Logistics and Closed-Loop Supply Chain: A Comprehensive Review to Explore The Future. European Journal of Operational Research, 240/3, 2015, 603-626.

Gunasekaran, Angappa – Patel, Chaitali – Tırtıroglu, Ercan. Performance Measures and Metrics in A Supply Chain Environment. International Journal of Operations & Production Management, 21.1/2, 2001, 71-87.

Gurman, M. – Wu, D. Apple’s Supply Chain Woes Linger Even as China Recovers. 2020.

Handfield, Robert, vd. Applying Environmental Criteria to Supplier Assessment: A Study in The Application of The Analytical Hierarchy Process. European Journal of Operational Research, 141.1, 2002, 70-87.

Ho, William – Xu, Xiaowei – Dey, Prasanta K. Multi-Criteria Decision Making Approaches for Supplier Evaluation and Selection: A Literature Review. European Journal of Operational Research, 202/1, 2010, 16-24.

Hohensteın, Nils-Ole – Feisel, Edda – Hartmann, Evi. Human Resource Management Issues in Supply Chain Management Research: A Systematic Literature Review From 1998 To 2014. International Journal of Physical Distribution & Logistics Management, 44/6, 2014, 434-463.

Holweg, Matthias. The Genealogy of Lean Production. Journal of Operations Management, 25/2, 2007, 420-437.

Huttinger, Lisa – Schiele, Holger – Schroer, Dennis. Exploring The Antecedents of Preferential Customer Treatment By Suppliers: A Mixed Methods Approach. Supply Chain Management: An International Journal, 19.5/6, 2014, 697-721.

Kadyrova, Janargul. Tedarik Zinciri Yönetimi Çerçevesinde İşletme Performansının Belirlenmesi ve Bir Uygulama, Konya: Selçuk Üniversitesi Sosyal Bilimler Enstitüsü. Yüksek Lisans Tezi. 2009.

Kahkonen, Anni-Kaisa – Lintukangas, Katrina. The Underlying Potential of Supply Management in Value Creation. Journal of Purchasing and Supply Management, 18/2, 2012, 68-75.

Krajewski, Lee J. – Malhotra, Manoj K. Operations Management: Processes and Supply Chains. Pearson, 2022.

Lambert, Stock – Stock, J. R. Ellram (1998) Fundamentals of Logistics Management. International Edition, Mcgraw – Hill.

Lummus, Rhonda R. – Krumwıede, Dennis W. – Vokurka, Robert J. The Relationship of Logistics to Supply Chain Management: Developing A Common Industry Definition. Industrial Management & Data Systems, 101/8, 2001, 426-432.

Manuj, Ila – Mentzer, John T. Global Supply Chain Risk Management Strategies. International Journal of Physical Distribution & Logistics Management, 38/3, 2008, 192-223.

Özdemir, Ali İhsan. Tedarik Zinciri Yönetiminin Gelişimi, Süreçleri ve Yararları. Erciyes Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 2004, 23.

Paksoy, Turan – Güleş, Hasan Kürşat; Altıparmak, Fulya. Tedarik Zinciri Yönetiminde Dağıtım Ağlarının Tasarımı ve Eniyilemesi: Çok Aşamalı Karma Tamsayılı Bir Doğrusal Programlama Modeli. Dokuz Eylül Üniversitesi İşletme Fakültesi Dergisi, 4/2, 2003, 1-25.

Russell, Stephen Hays. Supply Chain Management: More Than Integrated Logistics. Air Force Journal of Logistics, 31/2, 2007, 56-64.

Saaty, T. L. (2005). Theoryandapplications of theanalytic network process: decisionmakingwithbenefits, opportunities, costs, andrisks. RWS publications.

SAATY, Thomas L. The analytic hierarchy process. Pittsburgh. 1996.

Saaty, Thomas L., Vd. How To Make a Decision. Models, Methods, Concepts & Applications of the Analytic Hierarchy Process, 2001, 1-25.

Salancik, Gerald R. – Pfeffer, Jeffrey. A Social Information Processing Approach To Job Attitudes and Task Design. Administrative Science Quarterly, 1978, 224-253.

Sharma, Srinarayan – Sugumaran, Vijayan – Rajagopalan, Balaji. A Framework For Creating Hybrid‐Open Source Software Communities. Information Systems Journal, 12/1, 2002, 7-25.

Tracey, Michael – Lim, Jeen‐Su - Vonderembse, Mark A. The Impact of Supply‐Chain Management Capabilities On Business Performance. Supply Chain Management: An International Journal, 10/ 3, 2005, 179-191.

Tracey, Michael. A Holistic Approach To New Product Development: New Insights. Journal of Supply Chain Management, 40/3, 2004, 37-55.

Triantaphyllou, Evangelos – Triantaphyllou, Evangelos. Multi-Criteria Decision Making Methods. Springer Us, 2000.

Ungan, Mustafa Cahit. En İyi Tedarik Zinciri Uygulamaları ve Bir Saha Çalışması. Süleyman Demirel Üniversitesi İktisadi ve İdari Bilimler Fakültesi Dergisi, 16/2, 2011, 307-322.

Ünüvar, Mustafa. Bütünleşik Tedarik Zinciri Yönetim Uygulamalarının Örgütsel Yapıya Etkisi. İzmir: Dokuz Eylül Üniversitesi. Doktora Tezi, 2007.

Wagner, Stephan M. – Bode, Christoph. An Empirical Examination of Supply Chain Performance Along Several Dimensions of Risk. Journal of Business Logistics, 29/1, 2008, 307-325.

Yüksel, Hilmi. Üretim/İşlemler Yönetimi Temel Kavramlar. Baskı, Nobel Yayın Dağıtım, Ankara, 2010.

Zhu, Qinghua – Sarkis, Joseph – Lai, Kee-Hung Institutional-Basedantecedentsandoutcomes of Environmentalperformance. Productionand Operations Management, 22/2, 2013a, 352-369.

Zhu, Qinghua - Sarkis, Joseph – Lai, Kee-Hung. Institutional-Based Antecedents And Performance Outcomes of Internal and External Green Supply Chain Management Practices. Journal of Purchasing and Supply Management, 19/2, 2013b, 106-117.

Published

2023-12-22

How to Cite

POLAT, B. (2023). THE EFFECTS OF DIGITALIZATION ON SUPPLY CHAIN AND SUPPLIER SELECTION PROCESSES: THE CONTRIBUTION OF THE ANALYTICAL HIERARCHY PROCESS (AHP) APPROACH TO SUPPLIER SELECTION IN THE CASE OF A MACHINE MANUFACTURING COMPANY. NEW ERA INTERNATIONAL JOURNAL OF INTERDISCIPLINARY SOCIAL RESEARCHES, 8(21), 1–29. https://doi.org/10.5281/zenodo.10421223

Issue

Section

Articles