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Article

Jian Liu, Fong‐Yuen Ding and Vinod Lall

Data envelopment analysis (DEA) has been widely applied to address various decision analysis problems due to its usefulness in evaluating multi‐criterion systems and…

Abstract

Data envelopment analysis (DEA) has been widely applied to address various decision analysis problems due to its usefulness in evaluating multi‐criterion systems and providing improvement targets for such systems. A supplier selection problem is inherently a multi‐criterion decision problem, and DEA has been applied to evaluate suppliers for an individual product. This paper proposes and demonstrates the application of DEA in evaluating the overall performances of suppliers in a manufacturing firm. A simplified DEA model for supplier selection is first presented to evaluate the overall performances of suppliers with a strategic orientation of being able to reduce the number of suppliers. A case study is then presented to demonstrate supplier performance evaluation using DEA for supplier selection and performance improvement considerations.

Details

Supply Chain Management: An International Journal, vol. 5 no. 3
Type: Research Article
ISSN: 1359-8546

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Abstract

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The Challenge of Bric Multinationals
Type: Book
ISBN: 978-1-78635-350-4

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Article

Chinmay Pattnaik and B. Elango

The previous decade has been characterized by emerging market firms expanding into international markets. This trend has led to scholars in the IB arena to grapple with…

Abstract

The previous decade has been characterized by emerging market firms expanding into international markets. This trend has led to scholars in the IB arena to grapple with the new phenomenon of emerging multinational enterprises (EMNEs), specifically the relationship between internationalization and performance of the EMNEs. This paper seeks to add to the literature by capturing the impact of firm resources on the internationalization‐performance relationship. Empirical analysis on a sample of 787 Indian manufacturing firms indicates that there is a non‐linear relationship between internationalization and performance. Findings also indicate that a firm’s capabilities in cost efficiency and marketing have a moderating impact on this relationship.

Details

Multinational Business Review, vol. 17 no. 2
Type: Research Article
ISSN: 1525-383X

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Article

Vinod Yadav and Milind Kumar Sharma

The problem of supplier selection gets complicated when a company looks for various criteria to evaluate different suppliers. The decision criteria used for supplier…

Abstract

Purpose

The problem of supplier selection gets complicated when a company looks for various criteria to evaluate different suppliers. The decision criteria used for supplier selection process can be different for different organizations due to a large number of factors. Hence, it can be said that supplier selection is basically, a multiple criteria decision-making (MCDM) problem. The purpose of this paper is to propose a hybrid data envelopment analytical hierarchy process (DEAHP) approach to solve the supplier selection problem for an automobile company.

Design/methodology/approach

In this study, the data envelopment analysis (DEA) approach is embedded into analytic hierarchy process (AHP) methodology. Literature review suggested that majority of researches found it appropriate using DEA and AHP methodologies for supplier selection process; hence it is felt that a hybrid DEAHP would be a useful methodology to offer a MCDM model for supplier selection problem.

Findings

First, the key criteria of the supplier selection problem for the company are identified. Then a model is developed and implemented for supplier selection using DEAHP approach. This study concluded that quality, cost and service are the most crucial criteria for an automobile company operational in a developing country like India. Sensitivity analysis further helped to evaluate suppliers based on each criterion.

Research limitations/implications

As this analysis and findings are based on only one case study of an Indian automobile company, and this necessitates caution in interpreting the results. The limited number of interviewed managers in a company restricts the generalizability of the results. Though the company selected for this study is typical of developing country businesses, the findings of the paper may not be readily extensible to other companies. Second, this study used retrospective settings, based on the interviewed feedback after the events had occurred. This method naturally poses limitations due to respondent recall and the accuracy of information provided. Third, the problem chosen for this study is based in a single country context and further additional research will be required to examine if the findings could be extended to other automobile companies in other developing nations. Also in some cases technique used in the study may pose some extra computational efforts.

Practical implications

This study points out the importance of the supplier selection problem. It provides key criteria for supplier selection in Indian context also proposes a framework to deal with multiple criteria. proposed model deals with two crucial criteria long term relationships and flexibility which were relatively less discussed and considered in the literature in past.

Originality/value

The proposed MCDM model can provide the guidelines and directions for the decision makers to effectively choose suppliers in the current competitive environment.

Details

Journal of Enterprise Information Management, vol. 28 no. 2
Type: Research Article
ISSN: 1741-0398

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Article

Vinod Yadav and Milind Kumar Sharma

The purpose of this paper is to propose a supplier selection model for an automobile company using analytic hierarchy process (AHP) approach. Supplier selection is now…

Abstract

Purpose

The purpose of this paper is to propose a supplier selection model for an automobile company using analytic hierarchy process (AHP) approach. Supplier selection is now growing to be an important but complex issue, as it involves a large number of factors and decisions. These factors have complicated operational and financial implications.

Design/methodology/approach

A case study of an Indian automobile company is used to illustrate and propose a supplier selection model using AHP approach.

Findings

Key criteria of the supplier selection problem are identified based on the literature review and case study. Then, a model is proposed for supplier selection using AHP approach followed by a detailed sensitivity analysis.

Practical implications

This paper contributes to supplier selection process, and points out the importance of supplier selection. It proposes a supplier selection model for an automobile industry which often faces heterogeneous supply environments. The proposed model provides key criteria for supplier selection in Indian context. This model may have high acceptability, where a large number of suppliers are available to supply the materials or provide the services.

Originality/value

The proposed model can provide guidelines and directions for managers involved in purchasing function to effectively select suppliers on the basis of the identified criteria in the heterogeneous manufacturing environment.

Details

Journal of Modelling in Management, vol. 11 no. 1
Type: Research Article
ISSN: 1746-5664

Keywords

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