In this paper, we present an integrated model with the balanced score card framework for supplier selection strategy. The proposed model of this paper gathers 161 important factors suggested in the literature and selects the six most important ones using different multi criteria techniques. We also propose a goal programming techniques with some hard constraints and implement the mathematical model for real-world case study of auto industry. The proposed model is solved in four different forms using TOPSIS, VIKOR and the combination of these 2 factors with factor analysis. The preliminary results indicate that a combination of VIKOR and factor analysis presented better results with 9% reduction in costs, 38% increase of quality, and 3.2% increase in acceptability.
How to cite this paper
Azar, A., Olfat, L., Khosravani, F & Jalali, R. (2011). A BSC method for supplier selection strategy using TOPSIS and VIKOR: A case study of part maker industry.Management Science Letters , 1(4), 559-568.
Refrences
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vector machine. Expert Systems with Applications, 36, 6978-6985.
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competitive supply chain, Expert Systems with Applications, 34(2), 1303-1311.
Hsu, C. W., & Hu, A. H. (2009). Applying hazardous substance management supplier selection using
analytical network process, Journal of Cleaner Production, 17, 255-264.
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opportunities, cost and risk. Expert Systems with Applications, 36(2), 2879-2893.
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chain partnering under limited evaluation resources. Computers in Industry, 55, 159-179.
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information processing model and an illustration. Journal of Purchasing & Supply Management,
15, 249-262.
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hierarchy process and multi-choice goal programming, Computers & Industrial Engineering, 58,
571-577.
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selection process in manufacturing: a case study. International Journal of Physical Distribution &
Logistics Management, 34(6), 492-504.
Mikhailov, L. (2002). Fuzzy analytical approach to partnership selection information of virtual
enterprises. Omega: The International Journal of Management Science, 30, 393-401.
?nüt, S., Soner Kara, S., & I?ik, E. (2009). Long term supplier selection using a combined Fuzzy
MCDM approach: A case study for a telecommunication company. Expert System With
applications, 36(2), 3887-3895.
Razmi, J., Jafari, M., Khakbaz, M. H. (2008). An integrated fuzzy group decision making/fuzzy linear
programming (FGDMLP) framework for supplier evaluation and order allocation. International
Journal of Advanced Manufacturing Technology, 43(5-6), 590-607.
Sawik, T. (2010). Single VS. Multiple objective supplier selection in make to order environment,
Omega, 38(3-4), 203-212.
Shen, C. Y., & Yu, K. T. (2009). Enhancing the efficacy of supplier selection decision making on the
initial stage of new product development: A hybrid Fuzzy approach considering the strategic and
operational factors simultaneously, Expert Systems with Applications, 36, 11271-11281.
Sim, K. L. & Koh, H. C. (2001). Balanced Scorecard: A rising trend in strategic performance
measurement. Measuring Business excellence, 5(2), 18-26.
Ustun, O., & Demirtas, E. A. (2008). An integrated multi-objective decision making process multiperiod
lot-sizing with supplier selection, Omega, 36, 509-521.
Wang, W. P. (2010). A Fuzzy linguistic computing approach to supplier selection, Applied
Mathematical Modeling, 34, 3130-3141.
Wongrassamee, S., Gardiner, P. D. & Simmons, J. E. L. (2003). Performance measurement tools, the
Balanced Scorecard and EFQM Excellence model. Measuring Business Excellence, 7(1), 14-29.
Wu, W., Sukoco, B. M., Li, C. Y., & Chen, S. H. (2009). An integrated multi-objective decisionmaking
process for supplier selection with bundling problem, Expert Systems with Applications,
36(2), 2327-2337.
Wu, D. (2009). Supplier selection: A hybrid model using DEA decision tree neural network, Expert
Systems with Applications, 36(5), 9105-9112.
Yoon, K., & Hwang, C. (1981). Multiple Attribute Decision Making Method and Applications.
Berlin: Springer.
review. Computers & Operations Research, 34(12), 3516-3540.
Anderson, H. V., Lawrie, G. & Shulver, M. (2000). The balanced scorecard vs. the EFQM business
excellence model – which is the better strategic management tool? 2GC Active Management, 1-15.
Decoene, V. & Bruggeman, W. (2006). Strategic alignment and middle-level manager & apos; s motivation in
a Balanced Scorecard setting. International journal of Operations & Production Management,
26(4), 429-448.
Dulmin., R. & Mininno, V. (2003), Supplier selection using a multi-criteria decision aid method.
Journal of Purchasing & Supply Management, 9, 177- 187.
Guneri, A. F., Yucel, A., & Ayyildiz,G. (2009). An integrated fuzzy approach for supplier selection
problem in SCM. Expert System with Applications, 36, 9223-9228.
Guo, X., Yuan, Z., & Tian, B. (2009). Supplier selection based on hierarchical potential support
vector machine. Expert Systems with Applications, 36, 6978-6985.
Ha, S. H., & Krishnan, R. (2008). A hybrid approach to supplier selection for the maintenance of a
competitive supply chain, Expert Systems with Applications, 34(2), 1303-1311.
Hsu, C. W., & Hu, A. H. (2009). Applying hazardous substance management supplier selection using
analytical network process, Journal of Cleaner Production, 17, 255-264.
Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard translating strategy into action.
Boston: Harvard Business School Press.
Kaplan, R. S., & Norton, D. (1992). The balanced scorecard measures that drive performance.
Harvard Business Review, 70(1), 71- 79.
Keskin, G.A., Ilhan, S. & Ozkan, C. (2010). The Fuzzy ART algorithm: A categorization method for
supplier evaluation and selection. Expert Systems with Applications, 37, 1235-1240.
Kline, P. (1993). An Easy Guide to Factor Analysis, Taylor and Francis Inc. ISBN: 0415094895.
Lam, K. C., Tao, R., Lam, M. C. K. (2010). A material supplier selection model for property
developers using fuzzy principal component analysis. Automation in Construction, 19, 608-618.
Lee, A. H. I. (2009). A Fuzzy supplier selection model with the consideration of benefits,
opportunities, cost and risk. Expert Systems with Applications, 36(2), 2879-2893.
Lin, C. W. R., & Chen, H. Y. S. (2004). A fuzzy strategic alliance selection framework for supply
chain partnering under limited evaluation resources. Computers in Industry, 55, 159-179.
568
Luo, X., Wu, C., Rosenberg, D., & Barnes, D. (2009). Supplier selection in agil supply selection: An
information processing model and an illustration. Journal of Purchasing & Supply Management,
15, 249-262.
Liao, C. N., & Kao, H. P. (2010). Supplier selection model using Tagouchi loss function, analytical
hierarchy process and multi-choice goal programming, Computers & Industrial Engineering, 58,
571-577.
Marvin E, Quesada G, Mora Monge C A (2004). Determining the importance of the supplier
selection process in manufacturing: a case study. International Journal of Physical Distribution &
Logistics Management, 34(6), 492-504.
Mikhailov, L. (2002). Fuzzy analytical approach to partnership selection information of virtual
enterprises. Omega: The International Journal of Management Science, 30, 393-401.
?nüt, S., Soner Kara, S., & I?ik, E. (2009). Long term supplier selection using a combined Fuzzy
MCDM approach: A case study for a telecommunication company. Expert System With
applications, 36(2), 3887-3895.
Razmi, J., Jafari, M., Khakbaz, M. H. (2008). An integrated fuzzy group decision making/fuzzy linear
programming (FGDMLP) framework for supplier evaluation and order allocation. International
Journal of Advanced Manufacturing Technology, 43(5-6), 590-607.
Sawik, T. (2010). Single VS. Multiple objective supplier selection in make to order environment,
Omega, 38(3-4), 203-212.
Shen, C. Y., & Yu, K. T. (2009). Enhancing the efficacy of supplier selection decision making on the
initial stage of new product development: A hybrid Fuzzy approach considering the strategic and
operational factors simultaneously, Expert Systems with Applications, 36, 11271-11281.
Sim, K. L. & Koh, H. C. (2001). Balanced Scorecard: A rising trend in strategic performance
measurement. Measuring Business excellence, 5(2), 18-26.
Ustun, O., & Demirtas, E. A. (2008). An integrated multi-objective decision making process multiperiod
lot-sizing with supplier selection, Omega, 36, 509-521.
Wang, W. P. (2010). A Fuzzy linguistic computing approach to supplier selection, Applied
Mathematical Modeling, 34, 3130-3141.
Wongrassamee, S., Gardiner, P. D. & Simmons, J. E. L. (2003). Performance measurement tools, the
Balanced Scorecard and EFQM Excellence model. Measuring Business Excellence, 7(1), 14-29.
Wu, W., Sukoco, B. M., Li, C. Y., & Chen, S. H. (2009). An integrated multi-objective decisionmaking
process for supplier selection with bundling problem, Expert Systems with Applications,
36(2), 2327-2337.
Wu, D. (2009). Supplier selection: A hybrid model using DEA decision tree neural network, Expert
Systems with Applications, 36(5), 9105-9112.
Yoon, K., & Hwang, C. (1981). Multiple Attribute Decision Making Method and Applications.
Berlin: Springer.