Title: Supplier selection in an agile manufacturing environment using Data Envelopment Analysis and Analytical Network Process

Authors: Mohammad Asif Hasan, Ravi Shankar, Joseph Sarkis

Addresses: University Polytechnic, Aligarh Muslim University, Aligarh 202002, UP, India; H No. 4/466, Zohra Bagh, 13 Ghalib Bagh, Civil Lines, Aligarh 202002, UP, India. ' Department of Management Studies, Vishwakarma Bhawan, Indian Institute of Technology, Hauz Khas, New Delhi 110016, India. ' Graduate School of Management, Clark University, 950 Main Street, Worcester, MA 01610-1477, USA

Abstract: Supplier selection is one of the most important activities of organisations, where the short- and long term success of a buyer|s organisation depends upon proper selection of its suppliers. The current competitive environment has placed increasing competitive pressures on suppliers to match the needs of buyer(s) in terms of quantity, quality, product mix, cost, time and place of delivery, to name a few performance measures. The focus on competitive supply chains and extended enterprises requires the adoption of agile manufacturing practices requiring their suppliers to have agile attributes. This study designs and implements a procedure for judging the suitability of suppliers for an organisation competing on agile manufacturing characteristics. Quantitative and qualitative factors are used to appraise and select appropriate suppliers to fit within an organisation|s agility practices. In seeking to achieve this task, the synergistic integration of two techniques, the Analytical Network Process (ANP) and Data Envelopment Analysis (DEA) is applied in a multi-phased supplier selection approach. Initially, ANP is executed to appraise suppliers on their qualitative benefits, generating quantitative data from these qualitative dimensions. Secondly, DEA is used to synthesise the data to arrive at a ranking of the suppliers. The technique is validated in a small company case study.

Keywords: agile manufacturing; analytical network process; ANP; data envelopment analysis; DEA; supplier selection; agility; logistics.

DOI: 10.1504/IJLSM.2008.017599

International Journal of Logistics Systems and Management, 2008 Vol.4 No.5, pp.523 - 550

Published online: 20 Mar 2008 *

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