Framework to manage suppliers for strategic alliances with a multicriteria method
Guarnieri, Patrícia; Almeida, Adiel Teixeira de
http://dx.doi.org/10.1590/0103-6513.132213
Production, vol.25, n3, p.713-724, 2015
Abstract
Processes that identify top suppliers of new products or services and evaluate the performance of the existing suppliers are essential to strategic alliances. The objective of this article is to propose a framework to select partners for strategic alliances in supply chain management using a multi-criteria method. To reach this objective, the multi- criteria modeling procedure was used to detach the steps of a decision process, which comprises the methodology used in this article. To illustrate the use of the model, a numerical application, with characteristics from a small supermarket using the ELECTRE III method, was presented. The main contribution of the model proposed is to improve the process used to select suppliers for strategic alliances by considering multiple criteria called ‘soft factors’. The proposed model suggests a systematic procedure that can reduce uncertainty in the decision process.
Keywords
ELECTRE III. Multi-criteria decision analysis. Strategic alliances. Supplier selection.
References
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Alencar, L. H., Almeida, A. T., & Morais, D. C. A. (2010). Multicriteria group decision model aggregating the preferences of decision-makers based on ELECTRE methods. Pesquisa Operacional, 30, 687-702. http://dx.doi.org/10.1590/S0101-74382010000300010
Alencar, L. H., Almeida, A. T., & Mota, C. M. M. (2007). Sistemática proposta para seleção de fornecedores em gestão de projetos. Gestão e Produção, 14(3), 477-487. http://dx.doi.org/10.1590/S0104-530X2007000300005
Almeida, A. T. (2013). Processo de decisão nas organizações: construindo modelos de decisão multicritério. São Paulo: Atlas.
Almeida, A. T. (2007). Multicriteria decision model for outsourcing contracts selection based on utility function and ELECTRE method. Computers & Operations Research, 34, 3569-3574. http://dx.doi.org/10.1016/j.cor.2006.01.003
Araz, C. Ozfirat, P. M., & Ozkarahan, I. (2007). An integrated multicriteria decision-making methodology for outsourcing management. Computers & Operations Research, 34(12), 3738-3756. http://dx.doi.org/10.1016/j.cor.2006.01.014
Bandeira, R. A. M., Mello, L. C. B. B., & Maçada, A. C. G. (2009). Relacionamento interorganizacional na cadeia de suprimentos: um estudo de caso na indústria da construção civil. Produção, 19(2), 376-387. http://dx.doi.org/10.1590/S0103-65132009000200012
Boran, F. E., Genç, S., Kurt, M., & Akay, D. (2009). A multi- criteria intuitionistic fuzzy group decision making for supplier selection with TOPSIS method. Expert Systems with Applications, 36(8), 11363-11368. http://dx.doi.org/10.1016/j.eswa.2009.03.039
Bozarth, C. C., & Handfield, R. B. (2008). Introduction to operations and supply chain management. New Jersey: Pearson Education Inc.
Brans, J. P., & Mareschal, B. (2005). PROMETHEE Methods. In J. Figueira, S. Greco & M. Ehrgott (Eds.), Multiple Criteria Decision Analysis: State of the Art Surveys (pp. 163-196). London: Springer Verlag.
Cao, M., & Zhang, Q. (2010). Supply chain collaborative advantage: A firm’s perspective. International Journal of Production Economics, 128(1), 358-367. http://dx.doi.org/10.1016/j.ijpe.2010.07.037
Chou, S. Y., & Chang, Y. H. (2008). A decision support system for supplier selection based on a strategy-aligned fuzzy SMART approach. Expert Systems with Applications, 34, 2241-2253. http://dx.doi.org/10.1016/j.eswa.2007.03.001
Choy, K. L., Lee, W. B., & Lo, V. (2003). Design of an intelligent supplier relationship management system: A hybrid case based neural network approach. Expert Systems with Applications, 24, 225-237. http://dx.doi.org/10.1016/S0957-4174(02)00151-3
Cravens, K., Piercy, N., & Cravens, D. (2000). Assessing the Performance of Strategic Alliances: Matching Metrics to Strategies. European Management Journal, 18(5), 529-541. http://dx.doi.org/10.1016/S0263-2373(00)00042-6
Dias, L. C., & Clìmaco, J. N. (2000). Additive aggregation with variable interdependent parameters: the VIP analysis software. Journal of the Operational Research Society, 51(9), 1070-1082.
Dickson, G. W. (1966). An analysis of vendor selection systems and decisions. Journal of Purchasing, 2(1), 5-17.
Dyer, J., Cho, D., & Chu, W. (1998). Strategic supplier segmentation: the next ‘best practice’ in supply chain management. California Management Review, 40(2), 57- 77. http://dx.doi.org/10.2307/41165933
Edwards, W., & Barron, F. H. (1994). SMARTS and SMARTER: Improved simple methods for multiattribute utility measurements. Organizational Behavior and Human Decision Processes, 60, 306-325. http://dx.doi.org/10.1006/obhd.1994.1087
Ellram, L. M. (1990). The supplier selection decision in strategic alliances. Journal of Purchasing and Materials Management, Fall, 8-14.
Ellram, L. M. (1995). Total cost of ownership: An analysis approach for purchasing. International Journal of Physical Distribution & Logistics Management, 25, 4-23. http://dx.doi.org/10.1108/09600039510099928
Ensslin, L., Ensslin, S. R., Rocha, S., Marafon, A. D., & Medaglia, T. A. (2013). Modelo multicritério de apoio à decisão construtivista no processo de avaliação de fornecedores. Produção, 23(2), 402-421. http://dx.doi.org/10.1590/S0103-65132012005000065
Feng, B., Fan, Z. P., & Ma, J. (2010). A method for partner selection of codevelopment alliances using individual and collaborative utilities. International Journal of Production Economics, 124, 159-170. http://dx.doi.org/10.1016/j.ijpe.2009.10.019
Figueira, J. R., Greco, S., & Roy, B. (2009). ELECTRE methods with interaction between criteria: An extension of the concordance index. European Journal of Operational Research, 199(2), 478-495. http://dx.doi.org/10.1016/j.ejor.2008.11.025
Figueira, J., Mousseau, V., & Roy, B. (2005). ELECTRE methods. In J. Figueira, S. Greco & M. Ehrgott (Eds.), Multiple Criteria Decision Analysis: State of the Art Surveys (pp. 133-162). London: Springer Verlag.
Freitas, A. L. P., & Costa, H. G. (1998). Avaliação e classificação da qualidade de serviços utilizando uma abordagem multicritério. Gestão e Produção, 5(3), 272-283. http://dx.doi.org/10.1590/S0104-530X1998000300008
Ha, S. H., & Krishnan, R. (2008). A hybrid approach to supplier selection for the maintenance of a competitive supply chain. Expert Systems with Applications, 34(2), 1303 - 1311. http://dx.doi.org/10.1016/j.eswa.2006.12.008
Ho, W, Xu, X., & Dey, P. K. (2010). Multi-criteria decision making approaches for supplier evaluation and selection: A literature review. European Journal of Operational Research, 202(1), 16-24. http://dx.doi.org/10.1016/j.ejor.2009.05.009
Hora, H. R. M., & Costa, H. G. (2009). O problema da inversao de ordem em métodos multicritério: um experimento com o ELECTRE III/IV. In Anais do XLI Simpósio Brasileiro de Pesquisa Operacional, Porto Seguro.
Hugonnard, J., & Roy, B. (1984). Ranking of suburban line extension projects for the Paris metro system by multicriteria method. Transportation Research, 16, 301-312.
Jacquet-Lagreze, E., & Siskos, J. (1982). Assessing a Set of Additive Utility Functions for Multicriteria Decision Making: The UTA Method. European Journal of Operational Research, 10(2), 151-164. http://dx.doi.org/10.1016/0377-2217(82)90155-2
Kannan, V. R., & Tan, K. C. (2004). Supplier alliances: differences in attitudes to supplier and quality management of adopters and non-adopters. International Journal of Supply Chain Management, 9(4), 279-286. http://dx.doi.org/10.1108/13598540410550028
Keeney, R. L. (1992). Value-focused thinking: a path to creative decision making. Cambridge: Harvard College.
Ku, C. Y., Chang, C. T., & Ho, H. P. (2010). Global supplier selection using fuzzy analytic hierarchy process and fuzzy goal programming. Qualitative and Quantitative, 44, 623-640. http://dx.doi.org/10.1007/s11135-009-9223-1
Liao, C. N., & Kao, H. P. (2010). Supplier selection model using Taguchi loss function, Analytical hierarchy process and Multi-choice goal programming. Computers & Industrial Engineering, 58, 571-577. http://dx.doi.org/10.1016/j.cie.2009.12.004
Mainville, D., Reardon, T., & Farina, E. M. M. Q. (2008). Scale, scope, and specialization effects on retailers procurement strategies: evidence from the fresh produce markets of São Paulo. Revista de Economia e Sociologia Rural, 46(1), 207-227. http://dx.doi.org/10.1590/S0103-20032008000100009
Mentzer, J., Dewitt, W., & Keebler, J. (2001). Defining supply chain management. Journal of Business Logistics, 22(2), 1-25. http://dx.doi. org/10.1002/j.2158-1592.2001.tb00001.x
Pi, W. N., & Low, C. (2006). Supplier evaluation and selection via Taguchi loss functions and an AHP. International Journal Advanced Manufacturing Technology, 27(5- 6), 625-630. http://dx.doi.org/10.1007/s00170-004-2227-z
Razmi J., & Rafiei, H. (2010). An integrated analytic network process with mixed-integer non-linear programming to supplier selection and order allocation. The International Journal of Advanced Manufacturing Technology, 49, 1195-1208. http://dx.doi.org/10.1007/s00170-009-2445-5
Razmi, J., Songhori, M. J., & Khakbaz, M. H. (2009). An integrated fuzzy group decision making/fuzzy linear programming (FGDMLP) framework for supplier evaluation and order allocation. International Journal of Advanced Manufacturing Technology, 43, 590-607. http://dx.doi.org/10.1007/s00170-008-1719-7
Roy, B., & Vanderpooten, D. (1997). The European school of MCDA: Emergence, basic features and current works. Journal of Multi-Criteria Decision Analysis, 5(1), 22-38. http://dx.doi.org/10.1002/(SICI)1099- 1360(199603)5:1<22::AID-MCDA93>3.0.CO;2-F
Ting, S. C., & Cho, D. I. (2008). An integrated approach for supplier selection and purchasing decisions. Supply Chain Management: An International Journal, 13(2), 116-127. http://dx.doi.org/10.1108/13598540810860958
Tjemkes, B., & Furrer, O. (2010). The antecedents of response strategies in strategic alliances. Management Decision, 48(7), 1103-1133. http://dx.doi. org/10.1108/00251741011068806
Viana, J. C., & Alencar, L. H. (2012). Metodologias para seleção de fornecedores: uma revisão da literatura. Produção, 22(4), 625-636. http://dx.doi.org/10.1590/S0103-65132012005000067
Vieira, J, Yoshizahi, H., & Ho, L. (2009). Collaboration intensity in the Brazilian supermarket retail chain. Supply Chain Management: An International Journal, 14(1), 11-21. http://dx.doi.org/10.1108/13598540910927269
Wang, W. P. (2010). A fuzzy linguistic computing approach to supplier evaluation. Applied Mathematical Modeling, 34(10), 3130-3141. http://dx.doi. org/10.1016/j.apm.2010.02.002
Wang, X., & Triantaphyllou, E. (2008). Ranking irregularities when evaluating alternatives by using some ELECTRE methods. Omega, 36, 45-63. http://dx.doi.org/10.1016/j.omega.2005.12.003
Wong, A., Tjosvold, D., & Zhang, P. (2005). Developing relationships in strategic alliances: Commitment to quality and cooperative interdependence. Industrial Marketing Management, 34(7), 722-731. http://dx.doi.org/10.1016/j.indmarman.2004.12.007
Yang, J. L., Chiu, H. N., Tzeng, G. H., & Yeh, R. H. (2008). Vendor selection by integrated fuzzy MCDM techniques with independent and interdependent relationships. Information Sciences, 178(21), 4166-4183. http://dx.doi.org/10.1016/j.ins.2008.06.003
Alencar, L. H., Almeida, A. T., & Morais, D. C. A. (2010). Multicriteria group decision model aggregating the preferences of decision-makers based on ELECTRE methods. Pesquisa Operacional, 30, 687-702. http://dx.doi.org/10.1590/S0101-74382010000300010
Alencar, L. H., Almeida, A. T., & Mota, C. M. M. (2007). Sistemática proposta para seleção de fornecedores em gestão de projetos. Gestão e Produção, 14(3), 477-487. http://dx.doi.org/10.1590/S0104-530X2007000300005
Almeida, A. T. (2013). Processo de decisão nas organizações: construindo modelos de decisão multicritério. São Paulo: Atlas.
Almeida, A. T. (2007). Multicriteria decision model for outsourcing contracts selection based on utility function and ELECTRE method. Computers & Operations Research, 34, 3569-3574. http://dx.doi.org/10.1016/j.cor.2006.01.003
Araz, C. Ozfirat, P. M., & Ozkarahan, I. (2007). An integrated multicriteria decision-making methodology for outsourcing management. Computers & Operations Research, 34(12), 3738-3756. http://dx.doi.org/10.1016/j.cor.2006.01.014
Bandeira, R. A. M., Mello, L. C. B. B., & Maçada, A. C. G. (2009). Relacionamento interorganizacional na cadeia de suprimentos: um estudo de caso na indústria da construção civil. Produção, 19(2), 376-387. http://dx.doi.org/10.1590/S0103-65132009000200012
Boran, F. E., Genç, S., Kurt, M., & Akay, D. (2009). A multi- criteria intuitionistic fuzzy group decision making for supplier selection with TOPSIS method. Expert Systems with Applications, 36(8), 11363-11368. http://dx.doi.org/10.1016/j.eswa.2009.03.039
Bozarth, C. C., & Handfield, R. B. (2008). Introduction to operations and supply chain management. New Jersey: Pearson Education Inc.
Brans, J. P., & Mareschal, B. (2005). PROMETHEE Methods. In J. Figueira, S. Greco & M. Ehrgott (Eds.), Multiple Criteria Decision Analysis: State of the Art Surveys (pp. 163-196). London: Springer Verlag.
Cao, M., & Zhang, Q. (2010). Supply chain collaborative advantage: A firm’s perspective. International Journal of Production Economics, 128(1), 358-367. http://dx.doi.org/10.1016/j.ijpe.2010.07.037
Chou, S. Y., & Chang, Y. H. (2008). A decision support system for supplier selection based on a strategy-aligned fuzzy SMART approach. Expert Systems with Applications, 34, 2241-2253. http://dx.doi.org/10.1016/j.eswa.2007.03.001
Choy, K. L., Lee, W. B., & Lo, V. (2003). Design of an intelligent supplier relationship management system: A hybrid case based neural network approach. Expert Systems with Applications, 24, 225-237. http://dx.doi.org/10.1016/S0957-4174(02)00151-3
Cravens, K., Piercy, N., & Cravens, D. (2000). Assessing the Performance of Strategic Alliances: Matching Metrics to Strategies. European Management Journal, 18(5), 529-541. http://dx.doi.org/10.1016/S0263-2373(00)00042-6
Dias, L. C., & Clìmaco, J. N. (2000). Additive aggregation with variable interdependent parameters: the VIP analysis software. Journal of the Operational Research Society, 51(9), 1070-1082.
Dickson, G. W. (1966). An analysis of vendor selection systems and decisions. Journal of Purchasing, 2(1), 5-17.
Dyer, J., Cho, D., & Chu, W. (1998). Strategic supplier segmentation: the next ‘best practice’ in supply chain management. California Management Review, 40(2), 57- 77. http://dx.doi.org/10.2307/41165933
Edwards, W., & Barron, F. H. (1994). SMARTS and SMARTER: Improved simple methods for multiattribute utility measurements. Organizational Behavior and Human Decision Processes, 60, 306-325. http://dx.doi.org/10.1006/obhd.1994.1087
Ellram, L. M. (1990). The supplier selection decision in strategic alliances. Journal of Purchasing and Materials Management, Fall, 8-14.
Ellram, L. M. (1995). Total cost of ownership: An analysis approach for purchasing. International Journal of Physical Distribution & Logistics Management, 25, 4-23. http://dx.doi.org/10.1108/09600039510099928
Ensslin, L., Ensslin, S. R., Rocha, S., Marafon, A. D., & Medaglia, T. A. (2013). Modelo multicritério de apoio à decisão construtivista no processo de avaliação de fornecedores. Produção, 23(2), 402-421. http://dx.doi.org/10.1590/S0103-65132012005000065
Feng, B., Fan, Z. P., & Ma, J. (2010). A method for partner selection of codevelopment alliances using individual and collaborative utilities. International Journal of Production Economics, 124, 159-170. http://dx.doi.org/10.1016/j.ijpe.2009.10.019
Figueira, J. R., Greco, S., & Roy, B. (2009). ELECTRE methods with interaction between criteria: An extension of the concordance index. European Journal of Operational Research, 199(2), 478-495. http://dx.doi.org/10.1016/j.ejor.2008.11.025
Figueira, J., Mousseau, V., & Roy, B. (2005). ELECTRE methods. In J. Figueira, S. Greco & M. Ehrgott (Eds.), Multiple Criteria Decision Analysis: State of the Art Surveys (pp. 133-162). London: Springer Verlag.
Freitas, A. L. P., & Costa, H. G. (1998). Avaliação e classificação da qualidade de serviços utilizando uma abordagem multicritério. Gestão e Produção, 5(3), 272-283. http://dx.doi.org/10.1590/S0104-530X1998000300008
Ha, S. H., & Krishnan, R. (2008). A hybrid approach to supplier selection for the maintenance of a competitive supply chain. Expert Systems with Applications, 34(2), 1303 - 1311. http://dx.doi.org/10.1016/j.eswa.2006.12.008
Ho, W, Xu, X., & Dey, P. K. (2010). Multi-criteria decision making approaches for supplier evaluation and selection: A literature review. European Journal of Operational Research, 202(1), 16-24. http://dx.doi.org/10.1016/j.ejor.2009.05.009
Hora, H. R. M., & Costa, H. G. (2009). O problema da inversao de ordem em métodos multicritério: um experimento com o ELECTRE III/IV. In Anais do XLI Simpósio Brasileiro de Pesquisa Operacional, Porto Seguro.
Hugonnard, J., & Roy, B. (1984). Ranking of suburban line extension projects for the Paris metro system by multicriteria method. Transportation Research, 16, 301-312.
Jacquet-Lagreze, E., & Siskos, J. (1982). Assessing a Set of Additive Utility Functions for Multicriteria Decision Making: The UTA Method. European Journal of Operational Research, 10(2), 151-164. http://dx.doi.org/10.1016/0377-2217(82)90155-2
Kannan, V. R., & Tan, K. C. (2004). Supplier alliances: differences in attitudes to supplier and quality management of adopters and non-adopters. International Journal of Supply Chain Management, 9(4), 279-286. http://dx.doi.org/10.1108/13598540410550028
Keeney, R. L. (1992). Value-focused thinking: a path to creative decision making. Cambridge: Harvard College.
Ku, C. Y., Chang, C. T., & Ho, H. P. (2010). Global supplier selection using fuzzy analytic hierarchy process and fuzzy goal programming. Qualitative and Quantitative, 44, 623-640. http://dx.doi.org/10.1007/s11135-009-9223-1
Liao, C. N., & Kao, H. P. (2010). Supplier selection model using Taguchi loss function, Analytical hierarchy process and Multi-choice goal programming. Computers & Industrial Engineering, 58, 571-577. http://dx.doi.org/10.1016/j.cie.2009.12.004
Mainville, D., Reardon, T., & Farina, E. M. M. Q. (2008). Scale, scope, and specialization effects on retailers procurement strategies: evidence from the fresh produce markets of São Paulo. Revista de Economia e Sociologia Rural, 46(1), 207-227. http://dx.doi.org/10.1590/S0103-20032008000100009
Mentzer, J., Dewitt, W., & Keebler, J. (2001). Defining supply chain management. Journal of Business Logistics, 22(2), 1-25. http://dx.doi. org/10.1002/j.2158-1592.2001.tb00001.x
Pi, W. N., & Low, C. (2006). Supplier evaluation and selection via Taguchi loss functions and an AHP. International Journal Advanced Manufacturing Technology, 27(5- 6), 625-630. http://dx.doi.org/10.1007/s00170-004-2227-z
Razmi J., & Rafiei, H. (2010). An integrated analytic network process with mixed-integer non-linear programming to supplier selection and order allocation. The International Journal of Advanced Manufacturing Technology, 49, 1195-1208. http://dx.doi.org/10.1007/s00170-009-2445-5
Razmi, J., Songhori, M. J., & Khakbaz, M. H. (2009). An integrated fuzzy group decision making/fuzzy linear programming (FGDMLP) framework for supplier evaluation and order allocation. International Journal of Advanced Manufacturing Technology, 43, 590-607. http://dx.doi.org/10.1007/s00170-008-1719-7
Roy, B., & Vanderpooten, D. (1997). The European school of MCDA: Emergence, basic features and current works. Journal of Multi-Criteria Decision Analysis, 5(1), 22-38. http://dx.doi.org/10.1002/(SICI)1099- 1360(199603)5:1<22::AID-MCDA93>3.0.CO;2-F
Ting, S. C., & Cho, D. I. (2008). An integrated approach for supplier selection and purchasing decisions. Supply Chain Management: An International Journal, 13(2), 116-127. http://dx.doi.org/10.1108/13598540810860958
Tjemkes, B., & Furrer, O. (2010). The antecedents of response strategies in strategic alliances. Management Decision, 48(7), 1103-1133. http://dx.doi. org/10.1108/00251741011068806
Viana, J. C., & Alencar, L. H. (2012). Metodologias para seleção de fornecedores: uma revisão da literatura. Produção, 22(4), 625-636. http://dx.doi.org/10.1590/S0103-65132012005000067
Vieira, J, Yoshizahi, H., & Ho, L. (2009). Collaboration intensity in the Brazilian supermarket retail chain. Supply Chain Management: An International Journal, 14(1), 11-21. http://dx.doi.org/10.1108/13598540910927269
Wang, W. P. (2010). A fuzzy linguistic computing approach to supplier evaluation. Applied Mathematical Modeling, 34(10), 3130-3141. http://dx.doi. org/10.1016/j.apm.2010.02.002
Wang, X., & Triantaphyllou, E. (2008). Ranking irregularities when evaluating alternatives by using some ELECTRE methods. Omega, 36, 45-63. http://dx.doi.org/10.1016/j.omega.2005.12.003
Wong, A., Tjosvold, D., & Zhang, P. (2005). Developing relationships in strategic alliances: Commitment to quality and cooperative interdependence. Industrial Marketing Management, 34(7), 722-731. http://dx.doi.org/10.1016/j.indmarman.2004.12.007
Yang, J. L., Chiu, H. N., Tzeng, G. H., & Yeh, R. H. (2008). Vendor selection by integrated fuzzy MCDM techniques with independent and interdependent relationships. Information Sciences, 178(21), 4166-4183. http://dx.doi.org/10.1016/j.ins.2008.06.003