A New Approach for Supplier Selection Process from the Features of Second Layer Suppliers Point of View

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Abstract:

In nowadays world competitive market, on account of the development of electronic media and its influence on shortening distances, companies require some core competencies in order to be able to compete with numerous competitors in industry and sustain their situation in such a market. In addition companies achieve this target are those which their processes perform great and exploit from competitive price, quality, guarantee, etc. Since some parameters such as price and quality are so dependent on the performance of company supply chain management, so the results can highly impress the final price and quality of products. One of the main processes of supply chain management is supplier selection process which its accurate implementation can dramatically increase company competitiveness. In presented article two layers of suppliers have been considered as a chain of suppliers. First layer suppliers are evaluated by two groups of criteria which the first one encompasses criteria belongs to first layer suppliers features and the second group contains criteria belong to the characteristics of second layer suppliers. One of the criteria is the performance of second layer suppliers against environmental issues. Then the proposed approach is solved by a method combined of concepts of fuzzy set theory (FST) and linear programming (LP) which has been nourished by real data extracted from an engineering design and supplying parts company. At the end results reveal the high importance of considering second layer suppliers features as a criteria for selecting the best supplier.

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Journal title

volume 21  issue 1

pages  35- 44

publication date 2010-06

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