International Journal of Procurement Management (30 papers in press)
Channel Coordination in a two echelon supply chain with lead time reduction using wholesale price scheme
by Jafar Heydari, Elham Zakaryaie, Roya Tat, Elham Heydari
Abstract: This paper develops the coordination of a two-echelon supply chain (SC) under lead time reduction strategies using a wholesale price contract as an incentive scheme. In the investigated model, the buyer defines the order quantity and the seller determines the replenishment policy and the lead time reduction strategy. Under the decentralised decision structure, both members' decision models are optimised where each party tends to maximise own profit. In the next step, the centralised decision model for the whole channel is studied where a single decision-maker optimises the entire SC profitability. The results show that under the decentralised decision model not only the channel profitability is lower, but also there is no effort for crashing lead times. Finally, a wholesale price coordination contract is developed to coordinate SC and convince both members to globally optimise their decisions. Our analysis indicates that the presented coordination policy leads to a win-win result for both members and at the same time reduces lead times.
Keywords: Supply chain coordination; lead time reduction; wholesale price scheme.
A Framework and Use Cases for Big Data in Procurement
by Stefan Zeisel
Abstract: Big data has become a buzzword that is broadly discussed in media and board rooms alike. However, in the procurement function there are few visible practical applications of a full-fledged big data scenario so far. Some academic research has been conducted as well as several practitioners' surveys, but insights on how procurement can profit from big data applications are very fragmented. Therefore, the following article portrays a conceptual framework for big data applications in the procurement function connecting different data sources, skilled teams, and big data analytics. Furthermore, a full array of existing and new use cases for procurement is derived.
Keywords: Big Data Analytics; Data Science; Procurement; Purchasing; Sourcing; Industry 4.0; Digitisation; ICT.
Coping with rising Supply Chain Complexity: Conceptualizing a Supply Network Map Structure Model to address that challenge
by Antonia Kappel, Holger Schiele, Wolfgang Buchholz
Abstract: The complexity in supply networks is increasing and influences the competitive position of the focal company. Traditional approaches like supply chain mapping only show the focal company's relationships with suppliers and customers along the vertical supply chain, but are not capable to map any horizontal buyer-supplier relationships with other companies. Hence, this paper introduces a new supply network map structure model that extends the multi-tier view towards suppliers and customers along the vertical supply chain also to the complementors and competitors across the horizontal supply chain. Thus, the model enables the development of the existing supply chain mapping theory further into a holistic supply network mapping method. The model has been conceptualised with the help of 13 semi-structured interviews and is based on relevant models from the strategic management and the purchasing and supply management (PSM) literature. According to design science, it has been refined in several iterations.
Keywords: Supply network; Supply chain mapping; Supply chain complexity; Conceptual research; Theory development; Semi-structured interviews; Design Science.
Economic Order Quantity Model for Two Generation Consecutive Technology Products under Permissible Delay in Payments
by Udayan Chanda, Gaurav Nagpal
Abstract: In this article, we discussed optimal replenishment policies for two succeeding generations technology products under partial trade credit financing. Life cycle dynamics is used to project demand rates of technology generations. It is often seen that advanced generation product plays an important role in cannibalizing the market of existing generation product. Demand estimation of technology products is a complex process, as the consumer buying behavior of technology generational products is not only depends on marketing mix variables but also associated with the time-to-market phenomenon of new technologies. In technology market, interaction among users of different generational products controls the rate of substitution of older technology products with the new one. Therefore, due to the substitution nature of demand of multi-generation product, it is important to incorporate the interaction-substitution effect in replenishment policies for these kind of products. We used life cycle dynamics to project demand rates of technology generations. In this paper, we formulate the total cost function for five different situations depending on the new generation introduction timing and length of trade credit period. A detail sensitivity analysis has been performed to explore the efficacy of the model in a given situation.
Keywords: Economic order quantity; Innovation Diffusion; Technological Innovations; Coefficient of Innovation; Coefficient of Imitation; Successive Generations; Trade credits.
DIRECT APPOINTMENT OF STATE-OWNED ENTERPRISES IN THE PROCUREMENT OF GOODS AND SERVICES: UNFAIR COMPETITION IN TENDER IN INDONESIA
by Mukti Fajar, Reza Fahlevi, Yati Nurhayati, Hilaire Tegnan
Abstract: This research aimed to analyse the provision of the direct appointment of state-owned enterprises in the procurement of goods and/or services in Indonesia. This is a qualitative normative legal research drawing on descriptive secondary data. The appointment of State-Owned Enterprises is regulated under the Ministerial Regulation on State-Owned Enterprises No. PER-05/MBU/2008 juncto Ministerial Regulation of State-Owned Enterprises No. PER-15/MBU/2012 on the General Guidance for the Implementation of Procurement of Goods and/or Services by State-Owned Enterprises. However, this business practice seems to have failed to bring about the results sought by the government. This study reveals that the regulation on General Guidance for the Implementation of Procurement of Goods and/or Services by State-Owned Enterprises contradicts Law No. 5/1999 on the Prohibition of Monopolistic Practices and Unfair Competition, especially Article 19d on discrimination and 22 on conspiracy with regard to the application of the principle of Lex Superior derogat Legi Inferior. The also shows that the appointment of State-Owned Enterprises in the procurement of goods and services entails corrupt practices and therefore does not guarantee a fair and competitive business environment in Indonesia. the study also reveals that there is corruption within the procurement of goods and services by State-Owned Enterprises in Indonesia.
Keywords: Direct Appointment; Procurement; State Owned Enterprises; Unfair Competition; and Tender.
Reviewing procurement: a change management model based on action research
by Tony Cragg, Sarrah Chraibi
Abstract: This paper proposes an iterative model for the make or buy of procurement linked to organisational change management. In a multi-year action research case study, the researcher was part of the project team reviewing procurement at the French Railway company. Both the outsourcing of procurement, as a strategic activity of the firm and the proposal of a model for the review process remain underexplored in the academic literature. This paper aims to contribute knowledge to how the key function of procurement can be successfully reorganised in a large firm as part of a change process. The authors find that within the structured change process, an underlying process is detectable, characterized by initiatives being launched, resistance to them (varying in scope and scale), followed by mitigation. Thus, in this case study, changing the procurement organisation of a large firm is shown to be an adaptive and emergent process, where what lies beneath the surface is as important as what is planned.
Keywords: make or buy decision process; outsourcing; procurement; organizational change management; action research.
A Performance Evaluation Model for Irans Special Economic Zones through Export Marketing
by Azarnoush Ansari, Saeedeh Ketabi, Majid Foruzan
Abstract: This paper aimed to evaluate the performance of Irans special economic export zones by considering export performance improvement criteria of companies operating in these zones. The panel data envelopment analysis was employed for performance evaluation from 2005 to 2016. The Delphi method and snowball sampling were utilized to obtain evaluation criteria from the participation of 77 experts and directors of special zones in three stepsThe research questionnaires were filled out by 212 representatives of companies based in special economic zones to survey qualitative evaluation criteria such as zone brand image and zone corporate marketing knowledge.
Keywords: Special economic zones; Export performance;Export marketing;international business relationships;Panel Data Envelopment Analysis.
Optimisation on Multi-Period Raw Material Procurement and Product Mixing Under Uncertain Demand via Probabilistic Multi-objective Model Approach
by Sutrisno Sutrisno, Solikhin Solikhin, Purnawan Adi Wicaksono
Abstract: Raw material procurement and product mixing plan are two important components in manufacturer industries since they contribute significantly to the production cost and profit. This article is addressed to describe a newly developed mathematical model in the form of multiobjective optimisation model as an alternative approach which can be used to optimise a multi-period raw material procurement and product mixing plan under uncertain demand. First, we have formulated two objective functions which are the amount of the product planned to be produced which should be maximised and the raw material procurement cost which should be minimised. Next, we have formulated a weighted objective function that is used to calculate the Pareto solution. Finally, we solve this optimisation problem to obtain the optimal value for all decision variables. Numerical experiments were conducted to evaluate the model which resulting the optimal value for each decision variable.
Keywords: Raw material procurement; product mixing; bi-objective optimisation; Pareto optimal.
Day ahead forecast of complex seasonal natural gas data to enhance procurement efficiency
by Iram Naim, Tripti Mahara, Sharfuddin Ahmed Khan
Abstract: Natural gas is one of the important commodities used by industry. With the volatility in market prices of this resource, it is essential to accurately forecast the consumption of natural gas at an organization level. This will not only aid in effective procurement but also help in reducing various penalties associated with it. The forecasting task becomes more complicated with the existence of multiple seasonality in consumption data. A daily natural gas consumption data of a manufacturing plant with multiple and non-integer seasonality is analyzed. The selected forecasted model provides recognition and identification of the existence of seasonality. RMSE and MAPE are compared for distinct forecasting horizons to examine the performance of forecasting. TBATS model represents excellent forecasting results for individual prediction horizons with minimum error. The forecasted outcome suggests the daily contracted quantity of natural gas that falls within the limits of procurement without any penalty.
Keywords: Time Series Analysis; Complex Seasonality; Procurement; Penalty; Forecasting.
The impact of power on the depth of sustainability collaboration in the supply chain network for Australian food retailers
by Hadi Rezaei Vandchali, Stephen Cahoon, Shu-Ling Chen
Abstract: The purpose of this paper is to investigate the impact of supplier power within supply chain networks (SCN) on the depth of sustainability collaboration with their focal firms. A web-based survey was applied to two large Australian retailers SCNs which resulted in receiving 67 completed questionnaires. A cluster analysis was conducted to create a suppliers power taxonomy. ANOVA and Tukey tests were also used to explain the mean differences in the depth of collaborative relationships. This paper identifies four quadrants for suppliers based on their power at both network and node levels, highlighting the impact of power on the depth of collaboration in each quadrant. The results also indicate that the depth of collaboration between the focal firm and its suppliers increases when the suppliers power increases at the network level and decreases at the node level.
Keywords: power; sustainability practices; supply chain network; SCN; focal firms; retail.
The effect of purchasing strategy on the economic production quantity model subject to random machine breakdown
by Farzad Dehghanian, Mehdi Deiranlou, Mohammadali Pirayesh
Abstract: In this article, we develop an economic production quantity (EPQ) model subject to process deterioration, machine breakdown and two types of repair, and study the influence of purchasing strategy on the systems expected total cost, as an alternative option to holding safety stock. We assume that the manufacturer could purchase some quantities from an available supplier with fixed non-zero lead-time This paper looks for the optimal value of production lot size and purchasing lot size in order to minimize the expected total cost The model is developed under general machine breakdown and repairs time distributions The optimality of the model under exponential failure and exponential repair times are studied For the numerical example, we illustrate the outcome of the proposed model and perform a sensitivity analysis on parameters, which directly influence optimal decisions.
Keywords: Economic production quantity; process deterioration; Machine breakdown; Defective items; Purchasing.
Big data in purchasing and supply management: A research agenda
by Ala Pazirandeh Arvidsson, Riikka Kaipia, Patrik Jonsson
Abstract: This study aims to synthesize knowledge about big data (BD) in the area of purchasing and supply management (PSM) and to develop an agenda for future research. A systematic literature review approach was employed, and 65 articles were synthesized based on a classification for BD in PSM to identify research gaps and opportunities. Literature in this area is descriptive and conceptual in nature, and modeling methods are favored. BD applications were identified for supplier selection, supply risk management, and supply visibility. Based on the complexity of access and use of BD we identify a need for contextualized theory-building studies.
Keywords: Big data; literature review; systematic literature review; purchasing and supply management; procurement; data analytics; research agenda.
An empirical analysis of Lisbon hotel room rates determinants
by Conceicao Gomes, Luís Lima Santos, Cátia Malheiros
Abstract: This study investigates the impact of several characteristics and attributes of hotels on room rates in one of the most visited cities in Europe. The research allows to compare, in a transparent way, findings of previous studies and promotes added value using for the first time the Hedonic Price Model (HPM) in the hospitality industry in Lisbon, Portugal. Although hotel room price determinants have already been studied, in this study it was introduced physical variables and location variables all together, as well as it was added the variables relating to certain services offered. A significant impact on hotel prices by official stars and OTAs punctuation has been confirmed. In line with previous studies, an additional star and belonging to a chain allow the hotel to increase the price. In addition, other attributes, such as the distance of the hotel from the airport and the centre, have impact on hotel prices.
Keywords: Hedonic price model; hotels; Lisbon; pricing; room rates.
Corporate Social Responsibility Regulation and Its Adoption by Transnational Corporations in Indonesia: The Case of Chevron Indonesia
by Firman Hasan, Sri Oktavia
Abstract: Corporate Social Responsibility (CSR) has become an important concept within the global business community and actors. However, how CSR-related laws can be adopted and implemented remains unclear and it is still under-represented in research. This paper aims to answer the question as to how CSR regulations are adopted into business strategy and implemented by Transnational Corporations in Indonesia. This study uses a qualitative approach with the case study as its research strategy. The case study concerns Chevron Annual Reports and Corporate Responsibility Reports from 2006 to 2015. Interviews took place at Chevrons Jakarta headquarter and Geothermal Salak in West Java, Indonesia. The interview scripts have been coded by applying the latent coding scheme, in which the themes and categories are inductively derived from the transcripts. The study found that the enactment of Law No 40/2007 on Limited Liability Company and other CSR-related policies have no significant impacts on Chevron Indonesia.
Keywords: Corporate Social Responsibility; Transnational Corporations; Corporate value; Chevron.
Effective-cognitive nature of engagement: correlating psychological capital and core-self-evaluations to work engagement via positive affects.
by Hasan Hosseini, Maryam Firouznia, Mohammad Mehdi Maleki Karam Abad
Abstract: The objective of this paper is primarily to hypothesise that personal resources, positive affects and work engagement are reciprocally associated with each other. In particular, by applying broaden-and-build theory, it seeks to demonstrate the predictive value of positive affects and individual resources for engagement by incorporating both core-self-evaluations and psychological capital as individual-level determinants of engagement. The research methodology is qualitative with the empirical field. The qualitative data analysis was conducted using content analysis. Hence, it is developmental at result and applicable from goal perspective. With reference to empirical studies and existing research on engagement, the proposed conceptual models through three gain spirals confirms the reciprocal relationships of personal resources-positive affects, positive affects-work engagement, and finally work engagement-personal resources, which is in accordance with the cognitive-affective state of engagement. The study can deepen the insights on how individual resources and positive affects interact in their contribution to work engagement. More importantly, this paper is the first to elucidate the cognitive-emotional nature of work engagement via presenting a comprehensive gain cycle considering individual resources as a cognitive representative, on the one hand, and positive emotions as an affective representative on the other hand.
Keywords: Work Engagement; Personal Resources; Psychological Capital; Core-self-evaluations; Positive Affects; and Broaden-and-Build Theory.
A Meta-Synthesis of Factors Influencing Auditor's Reasoning in MAXQDA Software
by Morteza Shafati, Mohammadreza Abdoli, Hasan Valiyan
Abstract: Reasoning is a sign of logical thinking, and is generally considered as a mental talent that acts in a completely rational way. In the present study, factors improving reasoning are introduced. The research methodology is combined, done in a one-year period (February 2019February 2020). In the qualitative part which was based on meta-synthesis, effective variables on auditors reasoning were examined by theory fundamentals and extracting open codes using MAXQDA 11 Software. By considering previous literatures, variables were classified in 26 codes, seven themes, and three categories including background, organisational, and personal factors. Results showed that adherence to ethics, knowledge and skills of a certain industry, supportive attitude, confirmation free of bias, using exploratory methods, data analysis, accountability, and social responsibility may be most important factors effective on auditors reasoning.
Keywords: Auditor's Reasoning; Judgment Quality; Reasoning Improvement; Auditor's Logic; Professionals Skills.
Emotional Intelligence in Procurement Management
by Dirk-Jan Kamann, Edit K?vári
Abstract: This contribution describes the role of emotional intelligence (EI) in procurement management (PM) and how to successfully operationalise and measure this concept. A literature review presents a well-tested questionnaire, which is applied in a survey among members of a national professional organisation in PM. These managers self-control is found to be higher than in other surveys with other types of managers; their well-being level however is lower. This suggests that PM managers can control their emotion well, but they pay the price in their happiness, optimism and self-esteem. In addition, male managers self-control and well-being is found to be higher than their female counterparts. Demonstrating the possibility to operationalise EI in a reliable way, this study opens an agenda to relate various EI dimensions to a vast range of endogenous variables such as performance variables and exogenous variables like customer typology, nature of the supply system or the internal arena.
Keywords: Emotional Intelligence; Empathy; Procurement; Purchasing; Supply Chain Management; Competences.
Two Inventory Models for Instant and Delayed Deteriorating Items with Price and Time Dependent Seasonal Demand
by Ashish Sharma, Amit Kumar Saraswat
Abstract: Deterioration is one of the basic assumptions of inventory models so the analysis of inventory models with deterioration will provide more realistic insights. In this paper we developed two inventory models with instant and delayed deterioration rate. Price and time dependent seasonal demand function is considered. In both the models we have an option that after some successive demand seasons whether we can continue with the same price or we can change the selling price. Analytical and numerical analysis provides important managerial insights. Numerical analysis shows that it better to reduce the price after some initial seasons with instant deterioration while with delayed deterioration selling price must be unchanged for as much as possible seasons.
Keywords: inventory; deterioration; seasonal demand; price and time dependent demand; partial backlogging.
Procurement Function Modelled as a Taxonomy of Perishable Goods along the Cold Chain
by Garimella Bhaskar Narasimha Rao
Abstract: This manuscript seeks to explore the paradigm of market dynamics of procurement of perishable goods as an alternative to large scale CAPEX on warehousing facilities. The study encompasses a validation of the storage and stowage at strategic locations along the cold supply chain network. The primary variables chosen for an analytical review are sensitive to many critical success factors; in light of the clustered variable of rate of decay, the asymptotic impact of conservation (activation delay) is accounted for by way of analysing the inbound, outbound and storage of a multitude of perishable goods at a large corporate operating the live city of Bangalore. The study computed factor analysis, theory of generalisation and the widely adopted Kraljic matrix for deriving the taxonomy parameters. Over the last five years, deterioration affect as a quantified variable has attracted multiple studies. This study asserts that, a taxonomy based approach to assimilate the importance of participating in the dynamic market as a stakeholder and optimal order servicing from the aisles in the warehouse can help firms in the cold chain attain competitive advantage.
Keywords: perishable goods; warehousing; taxonomy; competitive advantage; cold chains.
Determinants of Purchase Intention of Halal Packaged Food among Non-Muslim Consumers
by Muhammad Syukur, Dej-anan Bungkilo, Chatrudee Jongsureyapart
Abstract: This paper is to fulfil the request from academicians for expanding the previous research, which took Thai Muslim consumers as the samples. This research aims to test the determinants of purchase intention from Thai non-Muslims on halal packaged food. Multiple regression analysis is applied to the data from 193 respondents representing all four regions in Thailand. It is found that the place, promotion, and awareness are determinants for purchase intention on halal packaged food. By matching the result of the related research on Thai Muslims, it is concluded that place (product availability) and awareness are determinants of purchase intention of halal packaged food among both Muslims and non-Muslim in Thailand.
Keywords: Purchase intention; halal food; Thailand; non-Muslims; marketing mix; theory of planned behaviour; halal awareness; knowledge about halal food; religiosity level.
Knowledge and utilization of the Uniform System of Accounts for the Lodging Industry: evidence from Portugal
by Maria Joao C. V. Machado, Miguel Sampaio Silva
Abstract: The specific objectives of this study are: to analyse the rate of knowledge dissemination about the uniform system of accounts for the lodging industry (USALI) and its association with the characteristics of the hotels financial managers; to analyse the utilisation rate of this method and its association with the hotel features. The data collection was carried out through a survey addressed to the financial managers of 3, 4 and 5-star hotels located in Portugal, and 189 completed surveys were obtained. The results obtained allow us to indicate as main contributions the following: to demonstrate the existence of associations between the financial managers characteristics and the knowledge of the USALI, proving statistically that gender, age, and the graduation level and area influence the knowledge of the USALI; to demonstrate the existence of associations between integration in a hotel chain and the use of the USALI.
Keywords: Uniform System of Accounts for the Lodging Industry; USALI; hotel features; financial managers characteristics.
The Perceived Value of Public Procurement and Contract Management Certification
by Sawsan Abutabenjeh, Sawsan Abutabenjeh, Vidanelage L. Dayarathna, Vidanelage L. Dayarathna, Raed M. Jaradat, Raed M. Jaradat, Morteza Nagahi, Morteza Nagahi, Stephen Gordon, Stephen Gordon
Abstract: The purpose of this research is to gain insight into how public procurement and contract management (PPCM) officials perceive the value of professional certification in their field. A survey instrument was sent to PPCM officials who are members of PPCM professional associations. Responses to the survey were received from 1809 PPCM officials and included both managers and non-managers. Officials were asked to provide their perceptions of the intrinsic and extrinsic values of certification, their perceptions of the value of certification to PPCM as a profession, and their perceptions of the value of certification to the organisations/agencies that employ PPCM practitioners. The results indicate that compared to uncertified PPCM respondents, certified PPCM respondents have higher intrinsic and extrinsic motivation to seek certification and view certification as more valuable to the profession and the organisation.
Keywords: public management; contract; public procurement; certification; perceived value; managers; public officials; intrinsic value; extrinsic value.
SMALL STATES, HIGH STAKES: A POLICY PROPOSAL TO DELIVER WELFARE VIA PUBLIC PURCHASING
by Laura Panades
Abstract: The article shows how and to what extent Caribbean British Overseas Territories (BOTs) can integrate social award criteria in public procurement. In the past decade, BOTs have experienced economic distress, political misdemeanours and rising perceptions of corruption. Lacking public procurement experience, how can these small, remote and socially unequal territories make the most of UK-led reforms? This research comes at a time when their public procurement frameworks are in their infancy and looking for ideas. Experience in the EU, the UK and the Latin America and Caribbean region show successful results, primarily in small communities at the local level. The methodology used is desk-based research leading to a worldwide survey of successful practices and a legal and policy analysis on its application to Caribbean BOTs.
Keywords: sustainable procurement; strategic procurement; award criteria; welfare; Caribbean; British Overseas Territories.
Developing a brand avoidance model in Pygmalion cycle
by Shahnaz Honarmand, Hossein Rezaei Dolatabadi, Azarnoush Ansari
Abstract: In this research, a model has been identified and presented for multiple dimensions of brand avoidance in Iranian home appliance industry. For designing the model, the causative conditions of factors, which lead to brand avoidance in the home appliance industry, were considered along with the dominant platform underlying brand avoidance and weakening or reinforcing interventional conditions. The research methodology is grounded. 256 semi-structured interviews were conducted. The sampling method is purposeful and judgmental along with the snowball method. To identify the consequences of brand avoidance, three perspectives of society, customer and companies have been investigated. The results of the research indicate the experiential, identity, moral, deficit-value, marketing, attitude and cognitive dimensions of brand avoidance. The Pygmalion effect was used to avoid the brand. In this study, gender behaviours were identified as intervening conditions and the role of government as the dominant platform.
Keywords: brand avoidance; gender behaviours; government role; home appliances; brand avoidance consequences; Pygmalion cycle.
Pricing model for deteriorating by considering of two items
by Seyed Mohamad Mahdi Kazemi, Nasser Safaie, Ali Nazeri
Abstract: The main purpose of present study is to examine a three-level supply chain that comprises a manufacturer, major distributor and retailer in which two deteriorating items are manufactured. At the manufacturer level, production planning is studied. This production takes place in such a way that it can supply the needs of the wholesaler and, at the same time, prevent the increase in the rate of deteriorating of the manufactured items. At the wholesale level, warehousing management is considered in order to minimise the waste of items in the warehouse, in addition to estimating the amount of demand received by the retailer. At retail level, demand management is examined. In this paper, demand is assumed to be a linear function of price, and naturally with increasing prices, the demand decreases. The mathematical model obtained in this research is a nonlinear mathematical optimisation problem. The results of this research are generalisations of some of the mathematical models in the subject literature.
Keywords: supply chain; deteriorating item; pricing; production management.
The perceived impact of public sector procurement reforms on development agenda in the KwaZulu-Natal province
by Sandile Gabela, Obianuju E. Okeke-Uzodike
Abstract: Public sector reforms are integral part of government efforts towards achieving citizen centric and responsive good governance. Reforms in the public procurement are considered essential elements for strengthening and achieving performance within the public sector. In developing countries, procurement reforms are aimed at driving various socio-economic developmental challenges. Within the South African purview, reforms in the public sector serve as a means of social development and transformation but government continues to strive to achieve these objectives. This is because the South African public sector has been manned by various supply chain management challenges deemed detrimental to the efficient and effective delivery of government mandates. The researchers used a two-phase Delphi technique approach in collecting qualitative data and the findings demonstrate an alignment with the objectives of procurement reforms but with meagre success story and recommended a shared vision for achieving developmental objectives.
Keywords: development; public procurement; reforms; transformation; South Africa.
Inventory model for instant deteriorating items with seasonal price and time dependent ramp type demand
by Ashish Sharma, Mukesh Kumar, Amit Kumar Saraswat
Abstract: In real life, deteriorating items are considered as the high profit products due to seasonal behaviour in demand. Another observation for the demand is the dependency over price as well as time. Many seasonal items have single opportunity of replenishment and the replenished inventory is used for successive number of demand seasons. In this paper, simultaneous procurement and pricing policies are considered for the seasonal deteriorating items with ramp type, price and time dependent demand rate. Time dependent partial backlogging is considered. Managerial insights are extracted from analytical results, numerical example and sensitivity analysis.
Keywords: inventory; deterioration; demand; product life cycle; pricing; time dependent partial backlogging.
Importance ranking of supplier selection scorecard parameters - among Indian car manufacturing industry
by Anand Ashokrao Patil, Jyoti Gogte
Abstract: The Indian automotive industry is now the fastest growing industry in the world ranking at fourth position replacing Germany. For any manufacturing industry, it is not only the customers but suppliers also play a very vital role in success. The proper selection of suppliers is necessary. In this research perception of 40 experts from the car manufacturing industry in India obtained about supplier selection scorecard parameters. The ranking is done based on preference. This ranking is then compared with the ranking of key parameters obtained from the literature survey and Dickson's (1966) ranking. Dickson's study is referred to as the base of research in this area since 1966 by most of the researchers. This research helps - understanding how Indian car manufacturing industry's perceptions are different than global perceptions based on literature survey and Dickson's 23 criteria. It provides the Indian car manufacturing industry's preference rankings for these parameters.
Keywords: supplier selection criteria; supplier evaluation; supplier performance indicators; vendor performance management; supply chain management; Indian car industry.
Compliance with the stipulated procurement process in local governments: a case from a developing nation
by Onaopepo Adeniyi, Lekan Damilola Ojo, Oluwaseun A. Idowu, Sunday B. Kolawole
Abstract: Empirical evidence of compliance or otherwise with procurement laws especially in developing nations is limited despite its importance in ensuring quality project delivery. This research assessed compliance with the procurement law in the local government setting of a developing nation, challenges to compliance and workable solutions. A total of 108 copies of a carefully structured questionnaire were administered to individuals concerned with contract administration in the local governments in the study area and 87 were considered good enough for analysis. Data analysis was done using crosstabulation, chi-square, mean score and percentile. Among other findings, the study revealed that there is partial compliance with the procurement clauses in the local governments. The study also revealed that significant relationship exists between knowledge of the Procurement Act, owning a copy of the act and compliance with the act. These findings of this study will be useful for construction and public procurement administrators as an evidence of the need for a multifaceted action towards strengthening compliance.
Keywords: compliance; construction; government; local; process; procurement; third-tier.
An integrated approach of ISM and fuzzy TOPSIS for supplier selection
by Tran Thi Tham, Nguyen Trong Tri Duc, Tran Thi My Dung, Hong-Phuc Nguyen
Abstract: Supplier selection is one of the most important tasks that contribute to the success of supply chain management. Choosing the right supplier will bring many benefits to the enterprises, such as costs reduction, profit increase, flexibility and competitiveness improvement. This study is conducted to develop a methodology that provides suitable supplier selection solution. Firstly, a set of 23 criteria are used to analyse the relationships between criteria by using interpretive structural modelling (ISM). The less important criteria will be eliminated though the model. Next, the fuzzy TOPSIS method, which focus on the distance from alternatives to positive ideal solution and negative ideal solution is applied to evaluate and rank suppliers. The result of ISM suggests choosing 22 appropriate criteria among the original 23 criteria used for the supplier selection problem. The result of fuzzy TOPSIS shows the ranking of six suppliers through a case study of a plastic packaging company.
Keywords: interpretive structural modelling; ISM; TOPSIS; supplier selection; fuzzy theory; supply chain management.