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Vendor rating for an entrepreneur development programme: a case study using the analytic hierarchy process method

Author

Listed:
  • S Yahya

    (Universiti Pertanian Malaysia)

  • B Kingsman

    (Lancaster University)

Abstract

With collaborative purchasing programmes where one of the aims is to develop suppliers, vendor rating is important not only in supplier selection and in deciding how to allocate business but also to determine where scarce development effort is best applied. This paper describes a case study into vendor rating for a government sponsored Entrepreneur Development programme in Malaysia. The paper reviews current methods for vendor rating and finds them wanting. It illustrates a new approach based on the use of Saaty's Analytic Hierarchy process method, which was developed to assist in multi-criteria decision problems. The new method overcomes the difficulties associated with the categorical and simple linear weighted average criteria ranking methods. It provides a more systematic way of deriving the weights to be used and for scoring the performance of vendors.

Suggested Citation

  • S Yahya & B Kingsman, 1999. "Vendor rating for an entrepreneur development programme: a case study using the analytic hierarchy process method," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(9), pages 916-930, September.
    • Handle: RePEc:pal:jorsoc:v:50:y:1999:i:9:d:10.1057_palgrave.jors.2600797
    DOI: 10.1057/palgrave.jors.2600797
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    Citations

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    Cited by:

    1. Pishchulov, Grigory & Trautrims, Alexander & Chesney, Thomas & Gold, Stefan & Schwab, Leila, 2019. "The Voting Analytic Hierarchy Process revisited: A revised method with application to sustainable supplier selection," International Journal of Production Economics, Elsevier, vol. 211(C), pages 166-179.
    2. Z Degraeve & F Roodhooft & B van Doveren, 2005. "The use of total cost of ownership for strategic procurement: a company-wide management information system," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 56(1), pages 51-59, January.
    3. Stefan Jovčić & Petr Průša & Momčilo Dobrodolac & Libor Švadlenka, 2019. "A Proposal for a Decision-Making Tool in Third-Party Logistics (3PL) Provider Selection Based on Multi-Criteria Analysis and the Fuzzy Approach," Sustainability, MDPI, vol. 11(15), pages 1-23, August.
    4. Xiongyong Zhou & Zhiduan Xu, 2018. "An Integrated Sustainable Supplier Selection Approach Based on Hybrid Information Aggregation," Sustainability, MDPI, vol. 10(7), pages 1-49, July.
    5. Kamath, Giridhar & Naik, Rakesh & Prasad, H C Shiva, 2016. "A vendor’s evaluation–using AHP for an Indian steel pipe manufacturing company," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 8(3), pages 442-461.
    6. Irfan Ali & Armin Fügenschuh & Srikant Gupta & Umar Muhammad Modibbo, 2020. "The LR-Type Fuzzy Multi-Objective Vendor Selection Problem in Supply Chain Management," Mathematics, MDPI, vol. 8(9), pages 1-25, September.
    7. Tien-Chin Wang & Su-Yuan Tsai, 2018. "Solar Panel Supplier Selection for the Photovoltaic System Design by Using Fuzzy Multi-Criteria Decision Making (MCDM) Approaches," Energies, MDPI, vol. 11(8), pages 1-22, July.
    8. Lin, Rong-Ho, 2012. "An integrated model for supplier selection under a fuzzy situation," International Journal of Production Economics, Elsevier, vol. 138(1), pages 55-61.
    9. García Alcaraz Jorge Luis & Alvarado Iniesta Alejandro & Maldonado Macías Aidé Araceli, 2013. "Selección de proveedores basada en análisis dimensional," Contaduría y Administración, Accounting and Management, vol. 58(3), pages 249-278, julio-sep.
    10. R-H Lin, 2009. "Potential use of FP-growth algorithm for identifying competitive suppliers in SCM," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 60(8), pages 1135-1141, August.
    11. Yahya, Salleh & Kingsman, Brian, 2002. "Modelling a multi-objective allocation problem in a government sponsored entrepreneur development programme," European Journal of Operational Research, Elsevier, vol. 136(2), pages 430-448, January.
    12. Roya Ghamari & Mohammad Mahdavi-Mazdeh & Seyed Farid Ghannadpour, 2022. "Resilient and sustainable supplier selection via a new framework: a case study from the steel industry," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(8), pages 10403-10441, August.
    13. Devesh Kumar & Gunjan Soni & Rohit Joshi & Vipul Jain & Amrik Sohal, 2022. "Modelling supply chain viability during COVID-19 disruption: A case of an Indian automobile manufacturing supply chain," Operations Management Research, Springer, vol. 15(3), pages 1224-1240, December.
    14. Carayannis, Elias G. & Grigoroudis, Evangelos & Wurth, Bernd, 2022. "OR for entrepreneurial ecosystems: A problem-oriented review and agenda," European Journal of Operational Research, Elsevier, vol. 300(3), pages 791-808.
    15. Sanjay Chaudhary & P. K. Suri, 2021. "Ranking the Factors Influencing e-Trading Usage in Agricultural Marketing," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(3), pages 233-249, September.
    16. Stefan Jovčić & Petr Průša, 2021. "A Hybrid MCDM Approach in Third-Party Logistics (3PL) Provider Selection," Mathematics, MDPI, vol. 9(21), pages 1-19, October.
    17. Hsin-Hung Wu & Ya-Ning Tsai, 2012. "Using AHP to evaluate the criteria of auto spare parts industry," Quality & Quantity: International Journal of Methodology, Springer, vol. 46(1), pages 359-364, January.
    18. Eleonora Bottani & Piera Centobelli & Teresa Murino & Ehsan Shekarian, 2018. "A QFD-ANP Method for Supplier Selection with Benefits, Opportunities, Costs and Risks Considerations," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 911-939, May.

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