Multi-criteria decision analysis

Vendor Selection Optimization In Supply Chain Management Abstract— An effective vendor selection process is very important to the success of any manufacturing organization. Simply looking for vendors offering the lowest prices is not efficient sourcing any more. We propose a multi-criteria decision making method, which accounts for both vendor selection and optimal order allocation. We also propose a policy for unselected vendors to maintain a competitive environment and derive maximum benefits. The model ranks vendors on the basis of their efficiency scores, derived from data envelopment analysis (DEA). These scores are then utilized in forming policies to retain the interest of unselected vendors in the selection process. Integer programming model is then used to select the vendors and allocate optimum order quantities to them based on their scores, while considering the buyer and vendor constraints. Keywords— vendor, criteria, data envelopement analysis, integer programming I. Introduction A supply chain is a network which connects customers, vendors, inventories, and retailers, and each role plays part in providing customers with a service or product. The management of this chain has become a critical aspect in today’s fiercely competitive business environment. Supply Chain Management (SCM) is now an integral part of company activities covering areas such as purchasing management, transportation management, production management, ware housing management, inventory…

Decision Trees - Chelst Chapter 10 Exercises – Kimberly Matthews 10.1 – Sequential decisions: Present an example of a sequence of two or more decisions followed by an uncertainty. Should we open a bakery or a diner?…

The decision model used for my topic is the top-down decision tree model. This decision tree measures the optimum recovery rate for the non-compliant patients. There isn’t really a threshold values that would cause the tree to flip. In this case, my decision tree would flip if I have too many variables in addition to the three types of non-compliant patients, or the outcome of these non-compliant patients in addition to the nursing home or hospitalization. Other possible patients’ category could…

THE BALANCED SCORECARD AND MULTI CRITERIA DECISION MAKING: A COMPARISON IN AN AIRLINE CONTEXT Abstract This paper compares and contrasts the performance measurement techniques of The Balanced Scorecard (BSC) which is widely used in industry and Multi Criteria Decision Making (MCDM) which is primarily a research tool. A review of the literature revealed a paucity of “real world” airline applications of the BSC while MCDM has been applied to the airline industry but primarily from a…

average (Rz) were considered as the experimental responses. Multi-criterion decision making method, TOPSIS has been employed for…

Chapter 1 Introduction The supply chain is an arrangement of associations included in filling a consumer demand (Chopr & Meindl, 2006). The supply chain consists of raw materials procurement from the suppliers and items are manufactured at the manufacturing facilities to produce the finished products and transport it to the consumers. Figure (1.1) represents a standard structure of supply chain. There are three integrated segments of a supply chain; upstream, where the procurement…

3. A BRIEF BACKGROUND ON THE DECISION MAKING TOOLS USED Analytic Hierarchy Process (AHP), developed by Saaty (34), is designed to solve complex multi-criteria decision problems. AHP decomposes the complex decisions in a hierarchical structure and makes it easy to manage the complex decisions in this way. So the decision maker can determine the trade-offs among objectives related to all criteria, sub-criteria and their pairwise comparisons. The output of AHP is a prioritized ranking…

Process Stages has been first applied for Scoubido project nevertheless with some difficulties which result on postponing the project at some gates of the PM Process Stages. It highly impacts on the planning. Meeting several stakeholders at Post Telecom Services and Post Technology, we noticed the following reasons for which the project is delayed: - No strict deadline, deadline not respected or deadline is not distributed to all stakeholders involved in the project, - Post Telecom Services and…

to economic analysis. Pareto’s theories and research have been discussed several times in Praxis with several different applications, including the Pareto Chart, the Pareto Principle, and Pareto Efficiency (relating to Arrow’s Impossibility Theorem and Pairwise Comparison Matrices). The connections between these topics and their limitations, however, are not developed in class. Pareto Charts and Pareto Analysis The first mention of Pareto occurred in Lecture 11, when discussing the point at…

According to Tahriri, the analyses of criteria for selection of suppliers have become the most important function and it has grabbed the attention of a number of purchasing managers (Tahriri, 2008). This rising importance of supplier selection decision is because of the increased globalization the world is going through, the increase in value of purchased components as percentage of total revenue for manufacturing firms. Beneton points out that the percentage of total revenue is 40 to 80% and…