A resilient global supplier selection strategy—a case study of an automotive company | The International Journal of Advanced Manufacturing Technology Skip to main content
Springer Nature Link
Log in

A resilient global supplier selection strategy—a case study of an automotive company

  • ORIGINAL ARTICLE
  • Published:
The International Journal of Advanced Manufacturing Technology Aims and scope Submit manuscript

Abstract

Disaster studies have recently received considerable attention. Determining how to build a resilient supply chain to mitigate uncertainty is the priority for automotive companies. Supplier selection strategies have been identified as vital for mitigating this uncertainty. This study sought to verify the criteria for selecting suppliers by using global performance measurements to identify optimal supply resources and locations in an uncertain disaster environment. The study focuses on an automotive company case study and evaluates the results through weighted goal programming (WGP) and preemptive goal programming (PGP) methods. The findings are as follows: (1) The investigated automotive company must arrange additional supply resources in the involved region by using a global supplier selection strategy, (2) an appropriate location in the involved region is identified through a global performance measurement and evaluation, and (3) disaster damage mitigation is determined to be a priority in long-term business strategies. This case study improves the preparedness of the automotive industry to manage unpredictable disasters in the supply chain through the effective use of a global selection strategy.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Subscribe and save

Springer+ Basic
¥17,985 /Month
  • Get 10 units per month
  • Download Article/Chapter or eBook
  • 1 Unit = 1 Article or 1 Chapter
  • Cancel anytime
Subscribe now

Buy Now

Price includes VAT (Japan)

Instant access to the full article PDF.

Institutional subscriptions

Similar content being viewed by others

Explore related subjects

Discover the latest articles, news and stories from top researchers in related subjects.

References

  1. Aktar DE, Ozden U (2008) An integrated multi-objective decision making process for supplier selection and order allocation. Omega 36:76–90

    Article  Google Scholar 

  2. Amid A, Ghodsypoura SH, O’Brien C (2006) “Fuzzy multi-objective linear model for supplier selection in a supply chain”. Int J Prod Econ 104:394–407

    Article  Google Scholar 

  3. Lee HIA (2009) A fuzzy supplier selection model with the consideration of benefits, opportunities, costs and risks”. Expert Syst Appl 36:2879–2893

    Article  Google Scholar 

  4. Bevilacqua M, Ciarapica FE, Giacchett G (2006) A fuzzy-QFD approach to supplier selection. J Purch Supply Manag 12:14–27

    Article  Google Scholar 

  5. Bellman RG, Zadeh LA (1970) Decision making a fuzzy environment. Manag Sci 17:B141–B164

  6. Boran FE, Genc S, Kurt M, Akay D (2009) A multi-criteria intuitionistic fuzzy group decision making for supplier selection with TOPSIS method. Expert Syst Appl 36:11363–11368

    Article  Google Scholar 

  7. Carvalho H, Barroso PA, Machado HV, Azevedo S, Cruz-Machado V (2012) Supply chain redesign for resilience using simulation. Comput Ind Eng 62:329–341

    Article  Google Scholar 

  8. Chen YJ (2011) Structured methodology for supplier selection and evaluation in a supply chain. Inf Sci 181:1651–1670

    Article  Google Scholar 

  9. Chen CT, Lin CT, Huang S-F (2006) “A fuzzy approach for supplier evaluation and selection in supply chain management”. Int J Prod Econ 102:289–301

    Article  Google Scholar 

  10. De Boer L, van Leo W, Telgen J (1998) Outranking methods in support of supplier selection. J Purch Supply Manag 4:109–118

    Article  Google Scholar 

  11. De Boer L, Labro E, Morlacchi P (2001) A review of methods supporting supplier selection. J Purch Supply Manag 7:75–89

    Article  Google Scholar 

  12. Dulmin R, Mininno V (2003) Supplier selection using a multi-criteria decision aid method. J Purch Supply Manag 9:177–187

    Article  Google Scholar 

  13. Faris CW, Robinson PJ, Wind Y (1967) Industrial buying and creative marketing. Allyn & Bacon, Boston

    Google Scholar 

  14. Felix CTS, Kumar N (2007) Global supplier development considering risk factors using fuzzy extended AHP-based approach. Omega 35:417–431

    Article  Google Scholar 

  15. Felix CTS, Kumar N, Tiwari MK, Lau HCW, Choy KL (2008) Global supplier selection: a fuzzy-AHP approach. Int J Prod Res 46(14):3825–3857

    Article  MATH  Google Scholar 

  16. Gary ZJ (2013) Purchasing and the management of materials. 7th Edition by John Wiley & Sons, Inc

  17. Ghodsypour SH, O’Brien C (1998) “A decision support system for supplier selection using an integrated analytic hierarchy process and linear programming”. Int J Prod Econ 56–57:199–212

    Article  Google Scholar 

  18. Ghodsypour SH, O’Brien C (2001) “The total cost of logistics in supplier selection, under conditions of multiple sourcing, multiple criteria and capacity constraint”. Int J Prod Econ 73:15–27

    Article  Google Scholar 

  19. Hang HG, Chan PS, Sik JD, Min RH (2005) An effective supplier selection method for constructing a competitive supply-relationship”. Expert Syst Appl 28:629–639

    Article  Google Scholar 

  20. Ho HS, Ramayya K (2008) A hybrid approach to supplier selection for the maintenance of a competitive supply chain. Expert Syst Appl 34:1303–1311

    Article  Google Scholar 

  21. Ho W, Xu X, Dey KP (2010) Multi-criteria decision making approaches for supplier evaluation and selection: a literature review. Eur J Oper Res 202:16–24

    Article  MATH  Google Scholar 

  22. Humphreys PK, Wong YK, Chan FTS (2003) Integrating environmental criteria into the supplier selection process. J Mater Process Technol 138:349–356

    Article  Google Scholar 

  23. Klibi W, Martel A (2012) Modeling approaches for the design of resilient supply networks under disruptions. Int J Prod Econ 135:882–898

    Article  Google Scholar 

  24. Kumar A, Jain V, Kumar S (2014) A comprehensive environment friendly approach for supplier selection. Omega 42:109–123

    Article  MathSciNet  Google Scholar 

  25. Liao Z, Rittscher J (2007) “A multi-objective supplier selection model under stochastic demand conditions”. Int J Prod Econ 105:150–159

    Article  Google Scholar 

  26. Martin C, Peck H (2004) Building the resilient supply chain. Int J Logist Manag 15(2):1–13

    Article  Google Scholar 

  27. Ng WL (2008) An efficient and simple model for multiple criteria supplier selection problem. Eur J Oper Res 186:1059–1067

    Article  MATH  Google Scholar 

  28. Onut S, Kara SS, Elif I (2009) Long term supplier selection using a combined fuzzy MCDM approach: a case study for a telecommunication company. Expert Syst Appl 36:3887–3895

    Article  Google Scholar 

  29. Rhee VB, Verma R, Plaschk G (2009) “Understanding trade-offs in the supplier selection process: the role of flexibility, delivery, and value-added services/support”. Int J Prod Econ 120:30–41

    Article  Google Scholar 

  30. Riedl FD, Kaufmann L, Zimmermann C, Perols LJ (2013) Reducing uncertainty in supplier selection decisions: antecedents and outcomes of procedural rationality. J Oper Manag 31:24–36

    Article  Google Scholar 

  31. Rifai A (1996) A note on the structure of the goal-programming model: assessment and evaluation. J Oper Manag 16:40–49

    Google Scholar 

  32. Sakawa M (1993) Fuzzy Sets and Interactive Multi-objective Optimization. Plenum Press, New York

  33. Samuel HH, Harshal K (2007) “Comprehensive and configurable metrics for supplier selection”. Int J Prod Econ 105:510–523

    Article  Google Scholar 

  34. Sanayei A, Mousavi SF, Yazdankhah A (2010) Group decision making process for supplier selection with VIKOR under fuzzy environment. Expert Syst Appl 37:24–30

    Article  Google Scholar 

  35. Sawik T (2010) Single vs. multiple objective supplier selection in a make to order environment. Omega 38:203–212

    Article  Google Scholar 

  36. Shaw K, Shankar R, Yadav SS, Thakur SL (2012) Supplier selection using fuzzy AHP and fuzzy multi-objective linear programming for developing low carbon supply chain. Expert Syst Appl 39:8182–8192

    Article  Google Scholar 

  37. Sheffi Y (2005) “Building a resilient supply chain”. Harvard Bus Rev, 1(08)

  38. Swift OC (1995) Preferences for single sourcing and supplier selection criteria. J Bus Res 32:05–111

    Article  Google Scholar 

  39. Tang SC (2006) “Perspectives in supply chain risk management”. Int J Prod Econ 103:451–488

    Article  Google Scholar 

  40. Tang SC, Tomlin B (2008) The power of flexibility for mitigating supply chain risks. Int J Prod Econ 116:12–27

    Article  Google Scholar 

  41. Thomas CY, Janet HL (1996) An exploration supply selection practices across the supply chain. J Oper Manag 14:333–343

    Article  Google Scholar 

  42. Timmerman E (1987) An approach to vendor performance evaluation. IEEE Technol Soc Mag 15(3):14–20

    Google Scholar 

  43. Tsai YL, Yang YJ, Lin CH (2010) A dynamic decision approach for supplier selection using ant colony system. Expert Syst Appl 37:8313–8321

    Article  Google Scholar 

  44. Tseng ML, Chiang JH, Lan WL (2009) Selection of optimal supplier in supply chain management strategy with analytic network process and choquet integral. Comput Ind Eng 57:330–340

    Article  Google Scholar 

  45. Ustun O, Demitras EA (2008) An integrated multi-objective decision-making process for multi-period lot-sizing with supplier selection. Omega 36:509–521

    Article  Google Scholar 

  46. Verma R, Pullman EM (1998) An analysis of the supplier selection process. OMEGA Int J Manag Sci 26(6):739–750

    Article  Google Scholar 

  47. Vokurka RJ, Joobin C, Lakshmi V (1996) A prototype expert system for the evaluation and selection of potential suppliers. Int J Oper Prod Man 16(12):106–127

  48. Wang JW, Cheng CH, H. K. C (2009) Fuzzy hierarchical TOPSIS for supplier selection. Appl Soft Comput 9:377–386

    Article  Google Scholar 

  49. Wisner KL, Sit DK, Hanusa BH, Moses-Kolko EL (2009) Major Depression and antidepressant treatment: impact on pregnancy and neonatal outcomes. Am J Psychiatry 166(5):557–566

  50. Wisner DJ, Tan KC, Leong GK (2012) Supply chain management: a balanced approach south-western 3rd version

  51. Wu W-Y, Sukoco MB, Li C-Y, Shu HC (2009) An integrated multi-objective decision-making process for supplier selection with bundling problem. Expert Syst Appl 36:2327–2337

    Article  Google Scholar 

  52. Xia W, Wu Z (2007) Supplier selection with multiple criteria in volume discount environments. Omega 35:494–504

    Article  Google Scholar 

  53. Yucel A, Guneri AF (2011) A weighted additive fuzzy programming approach for multi-criteria supplier selection. Expert Syst Appl 38:6281–6286

    Article  Google Scholar 

  54. Zenz G (1981) Purchasing and the Management of Materials. Wiley, New York

  55. Zimmermann HJ (1987) Fuzzy sets, decision making and expert systems. Kluwer Academic Publishers, Boston

    Book  Google Scholar 

  56. Zimmermann HJ (1993) Fuzzy sets theory and its applications, 4th edn. Kluwer Academic Publishers, Boston

    Google Scholar 

Download references

Author information

Authors and Affiliations

  1. Department of Industrial and Systems Engineering, Chung Yuan Christian University, Zhongli, 32023, Taiwan

    Amy Chen & H. M. Wee

  2. Department of Business Administration, Vanung University, Zhongli, 32061, Taiwan

    Chih-Ying Hsieh

Authors
  1. Amy Chen
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Chih-Ying Hsieh
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. H. M. Wee
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Chih-Ying Hsieh.

Appendix

Appendix

Supplier selection criteria defined from literatures:

  1. a

    Finance: profitability, cost (of product, logistics, tariff, and taxes), gross profit rate, quantity discount, markup (contractual percentage of reduction in unitary overhead related to unitary direct manufacturing costs), costs for buying environmentally friendly material, costs for buying new equipment, redesign of product costs, staff training costs, recycling costs, return on assets, price (of material, assembly, transportation, management, and negotiation), accountability, incentives, reciprocal of price index, cost of ordering parts, unit price of parts required for customers, quantity discounts, business volume discount, factor price, fixed cost, and variable cost

  2. b

    Quality: conformance to specification, product reliability, quality assessment technique process capability, product quality, quality system (presence or absence of quality certifications), production facilities, quality management intention (QMI), quality system outcome, claims, quality improvement, yield rate, reliability, repair ability, quality rejection rate, expected/acceptable defect rate, technical level, and defects

  3. c

    Delivery: punctuality of delivery, delivery performance, lead time, on-time delivery rate, delivery flexibility, programming of delivery, processing time (the time needed to develop product structural design), prototyping time (speed in constructing prototypes), design revision time (flexibility to accept and perform project revisions), service (on-time delivery, ease of communication, response to changes, and process flexibility), response to claims, accuracy, lead time, location, reciprocal of distance, number of delivery patterns, and acceptable late delivery rate

  4. d

    Relationship: technique cooperation, market cooperation, cooperative time, % acceptable long-term suppliers, joint growth, relationship building, trust, credibility, consistency, mutual trust, ease communication, order delays, inability to meet further requirements, and long-term relationship

  5. e

    Service: customer, availability to support customer, supplier service performance (delivery reliability, information sharing, flexibility and responsiveness, and customer response), customer complaints, service standard, responsiveness, improvement capability, attitude, communication, response speed, degree of communion, use of technology, professionalism of salesperson, responsiveness to customer needs, problem solving, assembling services, online ordering, number of required parts for customers, customer focus, order fulfillment, on-time delivery, supply capacity, repair turn-round time, and warranty period

  6. f

    Technology and product: R&D rate, process capability, product conformity, codesign (supplier’s effort within the project team), supplier technological levels, supplier technological levels, product development cycle time, product dynamism, time pressure, product familiarity, support to design process, product flexibility, product guarantee, and performance monitoring capabilities

  7. g

    Supply facility and infrastructure and market reputation, assets, and infrastructure

  8. h

    Management and organization: (organization control, business plans, customer communication, internal audit, and data administration), honesty and integrity, buyer-supplier fit, strategic commitment of supplier to buyer, safety, institutionalization, flexibility, work experience, competitive priority, strategic purchasing, top management support, information technology, single source or multiple source, alternative, supplier reputation, information system capability, interoperability with other parts, upgradability of hard or software, innovation, research, and development

  9. i

    Efficacy of corrective action, conflict resolution, and problem solving capabilities

  10. j

    Environment—carbon footprint (CO2)

  11. k

    Risk factors: geographical location, political stability and foreign policies, exchange rate and economic position, terrorism and crime rate, supply constraint, and buyer-supplier constraint.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Chen, A., Hsieh, CY. & Wee, H.M. A resilient global supplier selection strategy—a case study of an automotive company. Int J Adv Manuf Technol 87, 1475–1490 (2016). https://doi.org/10.1007/s00170-014-6567-z

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s00170-014-6567-z

Keywords

Search

Navigation