Journal
INTERNATIONAL JOURNAL OF ADVANCED MANUFACTURING TECHNOLOGY
Volume 51, Issue 9-12, Pages 1171-1178Publisher
SPRINGER LONDON LTD
DOI: 10.1007/s00170-010-2673-8
Keywords
Multiple sourcing; Analytic hierarchy process; Supplier performance probability; Knapsack model; Quantitative audit system
Ask authors/readers for more resources
Purchase allocation is a multi criteria decision making (MCDM) problem. Multitude of qualitative and quantitative factors is involved in the multiple sourcing decisions. Analytic hierarchy process (AHP) has widely been used to find out the relative rankings of suppliers. AHP can be combined with regular supplier quantitative audit process. In classical AHP, decision maker (DM) has to pair wise compare suppliers for each factor, whereas the proposed audit based simplified AHP will remove the complexity of comparison. Quarterly audit-based AHP rankings and supplier performance probability products can be used in place of revenues in the backward recursive resource allocation knapsack model. This combined model will decompose purchase allocation problem into different stages and combine one supplier at each stage and provide the optimum and feasible solution in the end. Solution at each stage is also a feasible option. This model is only applicable when the total order quantity and the capacity of all suppliers are integer multiples of economic or minimum order quantity. This integrated model thus provides number of orders/supplier.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available