Multi-Dependent Criteria Supplier Selection with Uncertain Performance Evaluation

Nowadays businesses tend to compete with rivals by improving capability to meet customer demands. One of the key to improve logistics efficiency of a firm is to select appropriate supplier. In the past, to select the most suitable supplier, most people evaluated performance by using average performa...

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Main Authors: O. Anuchitchanchai, K. Suthiwartnarueput, P. Pornchaiwiseskul
Format: Article
Language:English
Published: Emerald Publishing 2018-08-01
Series:Journal of International Logistics and Trade
Online Access:https://www.emerald.com/insight/content/doi/10.24006/jilt.2018.16.2.32/full/pdf
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author O. Anuchitchanchai
K. Suthiwartnarueput
P. Pornchaiwiseskul
author_facet O. Anuchitchanchai
K. Suthiwartnarueput
P. Pornchaiwiseskul
author_sort O. Anuchitchanchai
collection DOAJ
description Nowadays businesses tend to compete with rivals by improving capability to meet customer demands. One of the key to improve logistics efficiency of a firm is to select appropriate supplier. In the past, to select the most suitable supplier, most people evaluated performance by using average performance or variance from historical data but did not mentioned skewness. In other words, skewness impact on supplier performance is ignored by researchers and buyers. In fact, supplier with greatest average performance does not confirm to be the most suitable one because of uncertainties which make its performance skew either to the left or right, i.e., lower or higher than expectation. Therefore, this empirical study aims to discover and determine the important role of skewness on supplier selection problem. After identifying influential criteria on supplier selection, we analyze skewness effect on suppliers’ performance in each criterion by surveying real data of suppliers’ performances. Skewness effect can be rated in 3 levels; no effect, moderately effect, and highly effect. The results show that, there is only one criterion with no skewness effect, which is price. Criteria which have high skewed performance, for both of medium-sized and large-sized buyers, are lead time, product quality and reliability, and on-time delivery. Also, skewness has higher effect on suppliers’ performance of medium-sized buyers than large-sized buyers. The conclusion surprisingly shows that, skewness is the best index to distinguish between good and bad suppliers, while mean is the worst index.
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spelling doaj.art-0908b655432544f798768b6ab152b1df2023-11-17T10:48:13ZengEmerald PublishingJournal of International Logistics and Trade1738-21222508-75922018-08-01162324510.24006/jilt.2018.16.2.32Multi-Dependent Criteria Supplier Selection with Uncertain Performance EvaluationO. Anuchitchanchai0K. Suthiwartnarueput1P. Pornchaiwiseskul2Logistics and Supply Chain Management Program, Chulalongkorn University, Bangkok, ThailandLogistics and Supply Chain Management Program, Chulalongkorn University, Bangkok, ThailandLogistics and Supply Chain Management Program, Chulalongkorn University, Bangkok, ThailandNowadays businesses tend to compete with rivals by improving capability to meet customer demands. One of the key to improve logistics efficiency of a firm is to select appropriate supplier. In the past, to select the most suitable supplier, most people evaluated performance by using average performance or variance from historical data but did not mentioned skewness. In other words, skewness impact on supplier performance is ignored by researchers and buyers. In fact, supplier with greatest average performance does not confirm to be the most suitable one because of uncertainties which make its performance skew either to the left or right, i.e., lower or higher than expectation. Therefore, this empirical study aims to discover and determine the important role of skewness on supplier selection problem. After identifying influential criteria on supplier selection, we analyze skewness effect on suppliers’ performance in each criterion by surveying real data of suppliers’ performances. Skewness effect can be rated in 3 levels; no effect, moderately effect, and highly effect. The results show that, there is only one criterion with no skewness effect, which is price. Criteria which have high skewed performance, for both of medium-sized and large-sized buyers, are lead time, product quality and reliability, and on-time delivery. Also, skewness has higher effect on suppliers’ performance of medium-sized buyers than large-sized buyers. The conclusion surprisingly shows that, skewness is the best index to distinguish between good and bad suppliers, while mean is the worst index.https://www.emerald.com/insight/content/doi/10.24006/jilt.2018.16.2.32/full/pdf
spellingShingle O. Anuchitchanchai
K. Suthiwartnarueput
P. Pornchaiwiseskul
Multi-Dependent Criteria Supplier Selection with Uncertain Performance Evaluation
Journal of International Logistics and Trade
title Multi-Dependent Criteria Supplier Selection with Uncertain Performance Evaluation
title_full Multi-Dependent Criteria Supplier Selection with Uncertain Performance Evaluation
title_fullStr Multi-Dependent Criteria Supplier Selection with Uncertain Performance Evaluation
title_full_unstemmed Multi-Dependent Criteria Supplier Selection with Uncertain Performance Evaluation
title_short Multi-Dependent Criteria Supplier Selection with Uncertain Performance Evaluation
title_sort multi dependent criteria supplier selection with uncertain performance evaluation
url https://www.emerald.com/insight/content/doi/10.24006/jilt.2018.16.2.32/full/pdf
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AT ksuthiwartnarueput multidependentcriteriasupplierselectionwithuncertainperformanceevaluation
AT ppornchaiwiseskul multidependentcriteriasupplierselectionwithuncertainperformanceevaluation