Under intense competitive business environment, a manufacturing firm needs to explore supplier selection criteria in keeping with a view to meeting the expectations of its customers for achieving long-term sustainability. In fact, the nature of data on supplier selection criteria may be subjective as well as objective and may create ambiguity in making decision on establishing and prioritizing the criteria. MEREC (MEthod based on the Removal Effects of Criteria), a newly developed technique for estimating objective weights. It is used in this work for determining the weightages of the parameters for supplier selection. To select a suitable supplier, it is required to know how well the suppliers meet the criteria with the help of information on each supplier available with the purchasing department of a manufacturing firm. In this context Quality function deployment (QFD) serves as means of ranking the suppliers through inter-relationships between the criteria and capability of suppliers. In this paper QFD is adopted for ranking of suppliers on the basis of priority ratings of supplier selection parameters. While implementing QFD to resolve the uncertainty in establishment of House of quality, Grey relational analysis (GRA) is employed. A supplier selection problem pertaining to a steel manufacturing company is considered from literature to demonstrate the implementation of the proposed decision support frame work. The methodology can be applied to any medium-to-large manufacturing company which is having clear data on supplier selection attributes of their suppliers.

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Supplier Selection Through MEREC–QFD–GRA Integrated Decision Support Framework

  • K. G. Durga Prasad,
  • K. D. S. Sravani,
  • S. Kalyan,
  • K. D. S. Meghana,
  • B. Suvarna Sree

摘要

Under intense competitive business environment, a manufacturing firm needs to explore supplier selection criteria in keeping with a view to meeting the expectations of its customers for achieving long-term sustainability. In fact, the nature of data on supplier selection criteria may be subjective as well as objective and may create ambiguity in making decision on establishing and prioritizing the criteria. MEREC (MEthod based on the Removal Effects of Criteria), a newly developed technique for estimating objective weights. It is used in this work for determining the weightages of the parameters for supplier selection. To select a suitable supplier, it is required to know how well the suppliers meet the criteria with the help of information on each supplier available with the purchasing department of a manufacturing firm. In this context Quality function deployment (QFD) serves as means of ranking the suppliers through inter-relationships between the criteria and capability of suppliers. In this paper QFD is adopted for ranking of suppliers on the basis of priority ratings of supplier selection parameters. While implementing QFD to resolve the uncertainty in establishment of House of quality, Grey relational analysis (GRA) is employed. A supplier selection problem pertaining to a steel manufacturing company is considered from literature to demonstrate the implementation of the proposed decision support frame work. The methodology can be applied to any medium-to-large manufacturing company which is having clear data on supplier selection attributes of their suppliers.