A Hybrid Multi-Criteria Approach for Evaluation and Selection of Sustainable Suppliers in the Avionics Industry of Pakistan
Abstract
:1. Introduction
- RQ1:
- What are the criteria and sub-criteria for supplier selection reported in the literature?
- RQ2:
- What do the experts really think about the criteria and sub-criteria of supplier selection identified from the literature?
- RQ3:
- What would be the prioritization-based taxonomy of the identified criteria and sub-criteria?
- RQ4:
- How do we investigate the best supplier?
2. Research Background
2.1. Supplier Selection Concept
- Initial screening of suppliers from a group consisting of a large number of suppliers to squeeze or shortlist the alternatives to avoid tedious calculations.
- Finalize selection criteria for supplier selection, based on specific parameters like cost, quality, traceability, delivery, and agility.
- Continuous evaluation and assessment of suppliers and the identification of sustainable suppliers.
2.2. Applications of MCDM Used in Supplier Selection
3. Research Methodology
3.1. Identification of Main Criteria and Sub-Criteria for Supplier Selection
3.1.1. Literature Review on the Selection of Criteria and Sub-Criteria
3.1.2. Data Collection and Analysis of Main Criteria and Sub-Criteria
3.1.3. Expert Opinion (Pilot Evaluation of a Survey Questionnaire)
3.2. Empirical Investigation and Analysis of Criteria and Sub-Criteria
3.3. Fuzzy AHP Method
3.4. Fuzzy TOPSIS Method
4. Study Findings
4.1. Findings of the Main Criteria and Sub-Criteria
4.2. Empirical Investigation and Analysis (Survey Respondents/expert Opinion)
4.3. Fuzzy AHP Results
4.3.1. Develop the Hierarchy Structure of Criteria and Sub-Criteria
4.3.2. Developing the Pairwise Comparison and Calculation of Priority Weights
4.3.3. The Main Criteria Results
4.3.4. Sub-Criteria Results
4.4. Fuzzy TOPSIS Results
4.5. Sensitivity Analysis
4.6. Results Summary
5. Conclusions
Author Contributions
Acknowledgments
Conflicts of Interest
Appendix A
Appendix B
Appendix C
Appendix D
Appendix E
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Study Objective | Industry | Method | Year | Reference |
---|---|---|---|---|
Green supplier selection | Manufacturing | TOPSIS | 2016 | [38] |
Supplier selection based on green innovation ability | Manufacturing | FAHP and TOPSIS-Grey | 2020 | [39] |
Supplier selection | Food | BWM | 2016 | [40] |
Green supplier selection | Textile | FAHP | 2019 | [41] |
Green supplier selection | Cement | AHP | 2016 | [42] |
Reverse logistic partner | Manufacturing | TOPSIS | 2016 | [43] |
Sustainable supplier selection | Automobile | AHP and VIKOR | 2017 | [44] |
Green supplier selection | Electronic | AHP and ELCTRE | 2014 | [45] |
Technology selection | Engineering | ANP | 2014 | [46] |
Global Supply Chain | Logistics | FAHP and FANP | 2011 | [47] |
Safety and health management | Government | ANP and VIKOR | 2016 | [48] |
Green operations initiatives | Manufacturing | TOPSIS | 2015 | [49] |
Supply chain performance | Manufacturing | TOPSIS | 2014 | [50] |
Assessment of green supplier problem | Supply chain industry | Fuzzy WASPAS | 2019 | [51] |
Green Supplier Selection | Steel | BWM and FTOPSIS | 2020 | [52] |
Green supplier selection for sustainable development | Automobile | DEMATEL and ANP | 2018 | [53] |
Supplier selection | Washing Machine | FAHP | 2011 | [12] |
Long Term Supplier Selection | Telecommunication | FTOPSIS | 2008 | [54] |
Supplier Development | Manufacturing | FAHP | 2011 | [55] |
Supplier Selection and Performance Evaluation | Automobile (CAR) | FAHP, FTOPSIS and DEA | 2011 | [56] |
Criteria | Sub-criteria | Code | Explanation | Reference |
---|---|---|---|---|
Cost (C) | Price Variations | C1 | Unnecessary price variation with time demonstrates weak principle suppliers and weak reliability. | [11,14,21,30,55,56,57,58,59] |
Agility | C2 | The ability of the supplier to generate an alert in case any component is becoming obsolete or there is an upgrade in the model or part number. This speaks of his professional skills and knowledge of the supply chain. | ||
Financial Strength | C3 | The ability of the supplier to execute high-cost orders as electronic items are expensive, and only stable financial firms can compete in the cost comparison. | ||
Minimum Order Quantity | C4 | Stockists mostly do not impose minimum order quantity (MOQ) conditions, while resellers always demand MOQ. MOQ restrictions can increase cost significantly in avionic industry. | ||
Mode of Payment | C5 | Mode of payment defines the financial stability of the supplier. | ||
Traceability (T) | Digikey | T1 | Traceability towards reliable electronic component stockist and supplier. | [2,3,60,61,62] |
Mouser | T2 | Traceability towards reliable electronic component stockist and supplier. | ||
Arrow | T3 | Traceability towards reliable component stockist and supplier. | ||
Farnell | T4 | Traceability towards reliable component stockist and supplier. | ||
OEM | T5 | Traceability towards original equipment manufaturer (OEM) mitigates the doubts of fake or counterfeit. | ||
Others | T6 | When traceability towards any of the above mentioned sources is not established and a doubtful link is present. | ||
Quality (Q) | Test Reports | Q1 | Gives detail about each parameter, will be helpful for future degradation as reference. | [3,10,11,13,63,64] |
Quality Certificates | Q2 | Establishes that some standard for testing is followed. | ||
OEM Certificates | Q3 | Authenticates the OEM and its quality standards. | ||
Equivalency certificate | Q4 | Required only in case of replacements of parts due to the obsoleteness or availability of the next version. | ||
After Sales (AS) | Warranty | AS1 | Ability to respond or replace if the product or module fails. | [16,23,65] |
Previous Experience | AS2 | Fulfillment of warranty and guarantee if required in the past. | ||
Market Reputation | AS3 | Input from sister organizations and other customers about the supplier. | ||
Performance Bond | AS4 | Surety provided for warranty period. | ||
Risk (R) | Lack of capability | R1 | Has participated in the procurement procedure, won the order, and is unaware of difficulties and limitations due to weak principle links. | [3,4,8,20,25,66] |
Counterfeit | R2 | It provides a copy or fake component in good packing. | ||
Refurbished | R3 | It provides components that have consumed a useful life. | ||
Delivery (D) | Timely delivery | D1 | Timely delivery will help in the execution of the production. | [11,13,23,64,67] |
Delayed Delivery | D2 | Delayed delivery can put production setup on hold. | ||
Fail To Deliver | D3 | Failure to deliver means the whole process is nullified, and we have to restart from the beginning. High tech production delays are mostly linked with this issue | ||
Partial Delivery | (D4) | A partial order is delivered and a few parts remain pending for too long, which causes delays in production process. |
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | |
---|---|---|---|---|---|---|---|---|
0 | 0 | 0.52 | 0.89 | 1.11 | 1.25 | 1.35 | 1.40 |
Number | Linguistic Variable | TFN Scale |
---|---|---|
1 | Equally important | (1,1,1) |
2 | Weakly advantage | (1,2,3) |
3 | Not a bad advantage | (2,3,4) |
4 | Preferred | (3,4,5) |
5 | Good advantage | (4,5,6) |
6 | Fairly good advantage | (5,6,7) |
7 | Very good advantage | (6,7,8) |
8 | Absolute advantage | (7,8,9) |
9 | Perfect advantage | (8,9,10) |
Number | Linguistic Variables | TFNs |
---|---|---|
1 | Very low (VL) | (1,2,3) |
2 | Low (L) | (2,3,4) |
3 | Medium low (ML) | (3,4,5) |
4 | Medium (M) | (4,5,6) |
5 | Medium high (MH) | (5,6,7) |
6 | High (H) | (6,7,8) |
7 | Very High (VH) | (7,8,9) |
S. NO | Factors | Empirical Observations (N = 18) | |||||||
---|---|---|---|---|---|---|---|---|---|
Positive | Negative | Neutral | |||||||
S.A | A | % | D | S.D | % | N | % | ||
C | Cost (C) | 5 | 7 | 67 | 2 | 2 | 22 | 2 | 11 |
C1 | Price Variations (C1) | 5 | 8 | 72 | 1 | 2 | 17 | 2 | 11 |
C2 | Agility (C2) | 6 | 5 | 61 | 2 | 1 | 17 | 4 | 22 |
C3 | Financial strength (C3) | 5 | 7 | 67 | 2 | 1 | 17 | 3 | 17 |
C4 | Minimum Order Quantity (C4) | 3 | 3 | 33 | 4 | 5 | 50 | 3 | 17 |
C5 | Mod of Payment (C5) | 2 | 4 | 33 | 6 | 4 | 56 | 2 | 11 |
T | Traceability (T) | 8 | 8 | 89 | 1 | 0 | 6 | 1 | 6 |
T1 | Digikey (T1) | 8 | 8 | 89 | 1 | 1 | 11 | 0 | 0 |
T2 | Mouser (T2) | 8 | 7 | 83 | 1 | 1 | 11 | 1 | 6 |
T3 | Arrow (T3) | 7 | 7 | 78 | 1 | 1 | 11 | 2 | 11 |
T4 | Farnell (T4) | 7 | 6 | 72 | 2 | 1 | 17 | 2 | 11 |
T5 | OEM (T5) | 8 | 7 | 83 | 2 | 0 | 11 | 1 | 6 |
T6 | Others (T6) | 4 | 5 | 50 | 4 | 3 | 39 | 2 | 11 |
Q | Quality (Q) | 6 | 7 | 72 | 2 | 1 | 17 | 2 | 11 |
Q1 | Test reports (Q1) | 7 | 6 | 72 | 2 | 2 | 22 | 1 | 6 |
Q2 | Quality certificates (Q2) | 6 | 5 | 61 | 3 | 2 | 28 | 2 | 11 |
Q3 | OEM Certifications (Q3) | 7 | 3 | 56 | 4 | 2 | 33 | 2 | 11 |
Q4 | Equivalency certificate (Q4) | 4 | 2 | 33 | 5 | 5 | 56 | 2 | 11 |
AS | After Sales (AS) | 3 | 6 | 50 | 5 | 3 | 44 | 1 | 6 |
AS1 | Guaranty/Warranty (AS1) | 6 | 6 | 67 | 2 | 2 | 22 | 2 | 11 |
AS2 | Past experience (AS2) | 5 | 5 | 56 | 4 | 3 | 39 | 1 | 6 |
AS3 | Market reputation (AS3) | 5 | 6 | 61 | 5 | 2 | 39 | 0 | 0 |
AS4 | Performance Bond (AS4) | 4 | 4 | 44 | 6 | 3 | 50 | 1 | 6 |
R | Risk (R) | 5 | 5 | 56 | 4 | 3 | 39 | 1 | 6 |
R1 | Lack of capability (R1) | 7 | 6 | 72 | 3 | 2 | 28 | 0 | 0 |
R2 | Counterfeit (R2) | 6 | 6 | 67 | 3 | 2 | 28 | 1 | 6 |
R3 | Refurbished/used (R3) | 6 | 4 | 56 | 4 | 3 | 39 | 1 | 6 |
D | Delivery (D) | 5 | 5 | 56 | 3 | 3 | 33 | 2 | 11 |
D1 | Timely delivery (D1) | 6 | 6 | 67 | 3 | 2 | 28 | 1 | 6 |
D2 | Delayed delivery (D2) | 6 | 5 | 61 | 3 | 2 | 28 | 2 | 11 |
D3 | Fail to deliver (D3) | 6 | 5 | 61 | 3 | 3 | 33 | 1 | 6 |
D4 | Partial Delivery (D4) | 5 | 3 | 44 | 4 | 5 | 50 | 1 | 6 |
Code | Main Criteria | Weight | Rank |
---|---|---|---|
C | Cost | 0.1527 | 3 |
T | Traceability | 0.3449 | 1 |
Q | Quality | 0.2473 | 2 |
AS | After sales | 0.0447 | 6 |
D | Delivery | 0.0882 | 5 |
R | Risk | 0.1221 | 4 |
Main Criteria | Weight of Main Criteria | Sub-Criteria | Code | Priority Weights of Sub-Criteria | Local Rank Rank | Final Weights | Rank |
---|---|---|---|---|---|---|---|
Cost (C) | 0.1527 | Price Variations | C1 | 0.4150 | 1 | 0.0634 | 07 |
Agility | C2 | 0.2970 | 2 | 0.0454 | 11 | ||
Financial Strength | C3 | 0.2890 | 3 | 0.0441 | 13 | ||
Traceability (T) | 0.3449 | Digikey | T1 | 0.1832 | 5 | 0.0632 | 08 |
Mouser | T2 | 0.1891 | 2 | 0.0652 | 04 | ||
Arrow | T3 | 0.1903 | 1 | 0.0656 | 03 | ||
Farnell | T4 | 0.1885 | 3 | 0.0650 | 05 | ||
OEM | T5 | 0.1879 | 4 | 0.0648 | 06 | ||
Others | T6 | 0.0610 | 6 | 0.0210 | 17 | ||
Quality (Q) | 0.2473 | Test Reports | Q1 | 0.5080 | 1 | 0.1256 | 01 |
Quality Certificates | Q2 | 0.2810 | 2 | 0.0695 | 02 | ||
OEM Conformance Certificates | Q3 | 0.2110 | 3 | 0.0522 | 09 | ||
Aftersales (AS) | 0.0447 | Warranty | AS1 | 0.3940 | 1 | 0.0176 | 18 |
Previous Exp | AS2 | 0.2970 | 3 | 0.0133 | 21 | ||
Market Reputation | AS3 | 0.3090 | 2 | 0.0138 | 20 | ||
Risk (R) | 0.1221 | Lack of capability | R1 | 0.3410 | 2 | 0.0416 | 14 |
Counterfeit | R2 | 0.3980 | 1 | 0.0486 | 10 | ||
Refurbished | R3 | 0.2610 | 3 | 0.0319 | 15 | ||
Delivery (D) | 0.0882 | Timely delivery | D1 | 0.5130 | 1 | 0.0452 | 12 |
Delayed Delivery | D2 | 0.2900 | 2 | 0.0256 | 16 | ||
Fail To Deliver | D3 | 0.1970 | 3 | 0.0174 | 19 |
Code | Alternative | Final Ranking | ||||
---|---|---|---|---|---|---|
S1 | Supplier-1 | 8.0375 | 12.2541 | 0.6039 | 0.143 | 3 |
S2 | Supplier-2 | 5.3257 | 15.0308 | 0.7384 | 0.174 | 2 |
S3 | Supplier-3 | 8.7474 | 11.3303 | 0.5643 | 0.133 | 5 |
S4 | Supplier-4 | 10.1567 | 10.0182 | 0.4966 | 0.117 | 6 |
S5 | Supplier-5 | 8.3404 | 12.0072 | 0.5901 | 0.139 | 4 |
S6 | Supplier-6 | 15.8054 | 4.1233 | 0.2069 | 0.049 | 7 |
S7 | Supplier-7 | 16.9217 | 3.3261 | 0.1643 | 0.039 | 8 |
S8 | Supplier-8 | 2.5388 | 17.3913 | 0.8726 | 0.206 | 1 |
Criteria | Case (C)-1 (Actual) | C-2 | C-3 | C-4 | C-5 | C-6 | C-7 | C-8 | C-9 | C-10 | C-11 | C-12 | C-13 | C-14 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
C | 0.1527 | 0.167 | 0.300 | 0.140 | 0.140 | 0.140 | 0.140 | 0.140 | 0.500 | 0.100 | 0.100 | 0.100 | 0.100 | 0.100 |
T | 0.3449 | 0.167 | 0.140 | 0.300 | 0.140 | 0.140 | 0.140 | 0.140 | 0.100 | 0.500 | 0.100 | 0.100 | 0.100 | 0.100 |
Q | 0.2473 | 0.167 | 0.140 | 0.140 | 0.300 | 0.140 | 0.140 | 0.140 | 0.100 | 0.100 | 0.500 | 0.100 | 0.100 | 0.100 |
AS | 0.0447 | 0.167 | 0.140 | 0.140 | 0.140 | 0.300 | 0.140 | 0.140 | 0.100 | 0.100 | 0.100 | 0.500 | 0.100 | 0.100 |
R | 0.1221 | 0.167 | 0.140 | 0.140 | 0.140 | 0.140 | 0.300 | 0.140 | 0.100 | 0.100 | 0.100 | 0.100 | 0.500 | 0.100 |
D | 0.0882 | 0.167 | 0.140 | 0.150 | 0.140 | 0.140 | 0.140 | 0.300 | 0.100 | 0.100 | 0.100 | 0.100 | 0.100 | 0.500 |
Alternative | Case-1 | C-2 | C-3 | C-4 | C-5 | C-6 | C-7 | C-8 | C-9 | C-10 | C-11 | C-12 | C-13 | C-14 |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
S1 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 3 | 2 | 3 | 4 | 3 | 3 | 3 |
S2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 2 | 3 | 1 | 2 | 2 | 2 | 2 |
S3 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 5 | 3 | 5 | 5 | 5 |
S4 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 6 | 4 | 6 | 6 |
S5 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 4 | 5 | 6 | 4 | 4 |
S6 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 7 | 8 | 7 |
S7 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 8 | 7 | 8 |
S8 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 2 | 1 | 1 | 1 | 1 |
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Muhammad, N.; Fang, Z.; Shah, S.A.A.; Akbar, M.A.; Alsanad, A.; Gumaei, A.; Solangi, Y.A. A Hybrid Multi-Criteria Approach for Evaluation and Selection of Sustainable Suppliers in the Avionics Industry of Pakistan. Sustainability 2020, 12, 4744. https://doi.org/10.3390/su12114744
Muhammad N, Fang Z, Shah SAA, Akbar MA, Alsanad A, Gumaei A, Solangi YA. A Hybrid Multi-Criteria Approach for Evaluation and Selection of Sustainable Suppliers in the Avionics Industry of Pakistan. Sustainability. 2020; 12(11):4744. https://doi.org/10.3390/su12114744
Chicago/Turabian StyleMuhammad, Noor, Zhigeng Fang, Syed Ahsan Ali Shah, Muhammad Azeem Akbar, Ahmed Alsanad, Abdu Gumaei, and Yasir Ahmed Solangi. 2020. "A Hybrid Multi-Criteria Approach for Evaluation and Selection of Sustainable Suppliers in the Avionics Industry of Pakistan" Sustainability 12, no. 11: 4744. https://doi.org/10.3390/su12114744
APA StyleMuhammad, N., Fang, Z., Shah, S. A. A., Akbar, M. A., Alsanad, A., Gumaei, A., & Solangi, Y. A. (2020). A Hybrid Multi-Criteria Approach for Evaluation and Selection of Sustainable Suppliers in the Avionics Industry of Pakistan. Sustainability, 12(11), 4744. https://doi.org/10.3390/su12114744