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A new supplier performance evaluation model: A case study of integrated circuit (IC) packaging companies

He‐Yau Kang (Department of Industrial Engineering and Management, National Chin‐Yi University of Technology, Taichung, Taiwan)
Amy H.I. Lee (Department of Industrial Engineering and System Management, Chung Hua University, Hsinchu, Taiwan)

Kybernetes

ISSN: 0368-492X

Article publication date: 16 March 2010

2660

Abstract

Purpose

Most industries have become increasingly competitive nowadays, and a good supply chain relationship is essential for a company to survive and to acquire reasonable profit. Therefore, supplier selection is very important. The purpose of this paper is to propose a novel model for evaluating the performance of suppliers.

Design/methodology/approach

A supplier performance evaluation model based on analytic hierarchy process (AHP) and data envelopment analysis (DEA) is constructed. DEA is applied first to evaluate quantitative factors, and the results are transformed into pairwise comparison values for AHP analysis. Qualitative factors are also evaluated through AHP analysis, and a final ranking of suppliers can be obtained by combining the quantitative and qualitative results.

Findings

The proposed model can be applied to evaluate and select the most appropriate integrated circuit packaging company for outsourcing. With the incorporation of experts' opinions and the consideration of qualitative and quantitative factors, the model can provide a both subjective and objective supplier performance ranking.

Practical implications

The proposed model can be tailored and applied to supplier evaluation and selection in other industries.

Originality/value

Although many models are available for supplier evaluation, this paper considers both the subjective and objective performance characteristics simultaneously in the evaluation process.

Keywords

Citation

Kang, H. and Lee, A.H.I. (2010), "A new supplier performance evaluation model: A case study of integrated circuit (IC) packaging companies", Kybernetes, Vol. 39 No. 1, pp. 37-54. https://doi.org/10.1108/03684921011021264

Publisher

:

Emerald Group Publishing Limited

Copyright © 2010, Emerald Group Publishing Limited

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