A Clustering Algorithm for Supplier Base Management
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چکیده
Supplier base management is an important strategy for managing today’s global, customer driven supply chains. Successful supplier base management can effectively handle supply side exceptions, which may have significant business implications. The goal of this research is to present a clustering algorithm, named Max-Max-Roughness (MMR) to cluster suppliers into manageable smaller groups with similar characteristics. This will improve supplier development by providing effective benchmarking and then speed fulfillment operation by reducing the number of variables impacting the operations. The contribution of this research thus is three fold: (1) a new algorithm is developed for clustering categorical data (2) this algorithm is capable of handling uncertainty in the process of clustering and (3) this algorithm is compared with the fuzzy set based algorithm based on a real-world dataset, ZOO. A case study is then presented to validate the application of the algorithm to supplier based management.
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