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A practical framework for supplier selection decisions with an application to the automotive sector

Author

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  • Hengameh Hadian
  • S. Chahardoli
  • Amir-Mohammad Golmohammadi
  • Ali Mostafaeipour

Abstract

One of the most strategic materials used in automotive industries is galvanised steel sheets, of which 50% to 85% of the weight of each car is made. However, these materials with the desired specification cannot be produced in Iran and must be outsourced to foreign providers. Therefore, outsourcing has become an indispensable part of Iranian automotive industries and a cooperative buyer-provider relationship is essential to survive and to acquire a reasonable profit. A recent approach in MCDM models is the BOCR analysis of Benefits, Opportunities, Costs, and Risks which evaluate both positive and negative aspects of each provider. However, due to the incommensurability among the composite priorities on the four merit factors, different synthesis approaches introduced in BOCR may offer different orderings of alternatives; which can be confusing for decision-makers to reach a final decision. On the other hand, the VIKOR method determines a compromise solution which is the closest to the ideal in the presence of conflicting and incommensurable criteria. This paper suggests integrated VIKOR-AHP-BOCR to select the best providers of galvanised steel sheets for IKCO that is the largest Iranian automaker. The proposed model and defined criteria can be used as a comprehensive guide by other companies for this purpose.

Suggested Citation

  • Hengameh Hadian & S. Chahardoli & Amir-Mohammad Golmohammadi & Ali Mostafaeipour, 2020. "A practical framework for supplier selection decisions with an application to the automotive sector," International Journal of Production Research, Taylor & Francis Journals, vol. 58(10), pages 2997-3014, May.
    • Handle: RePEc:taf:tprsxx:v:58:y:2020:i:10:p:2997-3014
    DOI: 10.1080/00207543.2019.1624854
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    Cited by:

    1. Teerasak Charoennapharat & Poti Chaopaisarn, 2022. "Factors Affecting Multimodal Transport during COVID-19: A Thai Service Provider Perspective," Sustainability, MDPI, vol. 14(8), pages 1-25, April.
    2. Felipe Barrera & Marina Segura & Concepción Maroto, 2022. "Sustainable Technology Supplier Selection in the Banking Sector," Mathematics, MDPI, vol. 10(11), pages 1-21, June.
    3. Amin Mahmoudi & Saad Ahmed Javed, 2022. "Probabilistic Approach to Multi-Stage Supplier Evaluation: Confidence Level Measurement in Ordinal Priority Approach," Group Decision and Negotiation, Springer, vol. 31(5), pages 1051-1096, October.
    4. Mehdi Rajabi Asadabadi & Hadi Badri Ahmadi & Himanshu Gupta & James J. H. Liou, 2023. "Supplier selection to support environmental sustainability: the stratified BWM TOPSIS method," Annals of Operations Research, Springer, vol. 322(1), pages 321-344, March.
    5. Milad Zam & Mohammadhosein Tavakoli & Hasan Ramezanian & Amin Rezasoltani, 2022. "Assessing the different aspects of consuming fashion and the role of self-confidence on the buying behaviour of fashion consumers in the clothing market as a mediator," Papers 2209.02367, arXiv.org.
    6. Cheng-An Tsai & Tien-Hwa Ho & Jyh-Shyan Lin & Chien-Chih Tu & Che-Wei Chang, 2021. "Model for Evaluating Outsourcing Logistics Companies in the COVID-19 Pandemic," Logistics, MDPI, vol. 5(3), pages 1-15, September.
    7. Kuen-Suan Chen & Tsang-Chuan Chang & Chien-Che Huang, 2020. "Supplier Selection by Fuzzy Assessment and Testing for Process Quality under Consideration with Data Imprecision," Mathematics, MDPI, vol. 8(9), pages 1-14, August.

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