Multiple Criteria Decision Making in Supply Chain Management


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Chai, J. Application of decision-making techniques in supplier selection: A systematic review of literature. Expert Systems with Applications, 40 10 , Chatterjee, P. Materials selection using complex proportional assessment and evaluation of mixed data methods. Materials and Design, 32, Aluminum supplier selection for the automotive parts manufacturer. Metallurgy, 55 2 , Enarsson, L. Evaluation of suppliers: how to consider the environment. Frazelle, H. Logistics management library, McGraw-Hill. Ghorabaee, M. Supplier evaluation and selection in fuzzy environments: a review of MADM approaches.

Govindan, K. Multi criteria decision making approaches for green supplier evaluation and selection: a literature review. Journal of Cleaner Production, 98, Green, K. Purchising and environmental management: Interactions, policies and opportunities. Business Strategy and the Environment, 5 3 , Hokey, M.

Pearson Education LTD. Hwang, C.

Berlin: Springer Verlag. Jamil, N. Journal of Industrial Engineering, , Selection of rational dispute resolution method by applying new step-wise weight assessment ratio analysis SWARA. Journal of Business Economics and Management, 11 2 , Application of the oreste method for solving decision making problems in transportation and logistics. Min, H. International Purchasing Strategies of Multinational U. International Journal of Purchasing and Materials Management, 27 3 , Moghaddam, K. Fuzzy multi-objective model for supplier selection and order allocation in reverse logistics systems under supply and demand uncertainty.

Expert Systems with Applications, 42 , We analyze the identified papers within the SCM application areas design, purchasing, manufacturing, distribution, collaboration, logistics, and performance management, deriving research gaps in different SCM application areas. In the following section, we give a general overview of MCDM. Section three presents the findings of our literature study, first a general description of the development of MCDM in SCM in the considered time frame. The second part of section three categorizes the surveyed articles by their application area in SCM and analyzes selected approaches in detail.

Section five summarizes our findings. Multiple criteria decision making in general 2. Multi-attributive utility theory MAUT is sometimes referred to as another research stream of multiple criteria problems cf. Dyer et al.

Multi-criteria decision making approaches for green supply chains: a review

However, other authors classify it as a method category within MCDM methods. A more detailed description concerning the origins of MCDM, especially historical influences, may be found in Figueira et al. In categorizing different MCDM methods, there is no complete consensus between au- thors. However, categorizations of MCDM methods do not differ widely. We chose this categorization, since it most suitably represents re- search streams within MCDM. An alternative to this categorization is Wallenius et al.

Die Unternehmung, This classification is related to the categorization we presented; since MAUT and outranking approaches may be summarized under discrete alternative problems, the math- ematical programming may be referred to as multiple criteria optimization. Multi-objective mathematical programming MOMP deals with optimization problems incorporating two or more conflicting goals and is mostly concerned with quantitative or simply quantifiable information. Well-known approaches in this area are goal program- ming and multi-objective linear programming.

Goal programming approaches are normal- ly structured in the form of one objective function, which includes the weighting of the different goals. The accurate specification of goal criterion functions are formulated with- in the constraints cf. In multi-objective linear programming, the differ- ent objectives are each formulated as an objective function, which leads to several object- ive functions, each subject to optimization cf.

MAUT approaches use utility theory and apply it to problems with multiple conflicting criteria. Dyer Based on information obtained from a decision mak- er, preferences regarding two or more solution alternatives are derived, which admit the derivation of a ranking of the solution alternatives. Like MAUT approaches outranking methods are mainly concerned with intangible, hardly quantifiable criteria.

A class of more recent MCDM methods, therefore, referred to as non-classical ap- proaches, incorporates fuzzy set theory, grey relational analysis and choquet integrals. These approaches emerged in the last ten to 15 years and are concerned with situations where information is imprecise and uncertain.

Figure 1 summarizes the categorization with respect to MCDM approaches we utilize for this review. Figure 1: MCDM methods categorization 2. On the following pages, selected reviews of MCDM applications are summarized. The reviews are classifiable as: 1 general reviews that do not focus on specific methods or research areas, 2 reviews with a focus on certain methods in various research areas and 3 reviews, which focus on MCDM applications to business administration.

An early and frequently cited general review is Dyer et al. They identify seven different areas where they expect promising future developments for methods in MCDM. The review focuses very strongly on methods and their develop- ment; the conclusions of the authors are rather technical. The review contains a bibliometric analysis with respect to gen- eral applications of MCDM and shows fields for future research. They state that MCDM publications have grown by the factor 4. In addition, they report that Bragge et al.

For the analysis of more than 15, articles, they utilize text mining software. In reviews with focus on specific methods, Vargas survey the AHP methodology and its applications to several research areas, e. They find that the majority of AHP applica- tions occur in management and economics. They classify the application problem i. Central results of their study: the AHP is heavi- ly applied to selection and evaluation problems, in engineering and social application areas.

Ho reviews 66 integrated AHP applications. The primary methods applied with AHP are goal programming and quality function deployment. Furthermore, Ho states that in the rate of publication in the first review period to the sec- ond review period is 25 to He assumes a further increase in integrated AHP applications in the following years.

They report a steady number of applications since , predominantly on evaluation problems, e. Behzadian et al. They categorize the articles with respect to their ap- plication area e.

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Besides the general and the methodological specific reviews, there several surveys con- sider MCDM applications in other management disciplines. They classify the re- viewed studies by the applied method e. A broad review of supplier-related topics is provided by Jain et al. They concentrate on areas like supplier selection, supplier-buyer relationships and supplier-buyer flexibility. Ho et al. From to they find 78 articles that match their search criteria. Furthermore, they state that all the approaches they re- view can consider qualitative as well as quantitative criteria.

The high number of reviews on MCDM applications general or not method-specific or about a certain research area, reflects the strong interest of academia in this topic, con- firming the relevance of MCDM methods in several research areas. The interest of aca- demia concerning MCDM methods is not surprising from the perspective of modern deci- sion making and management practices.

Pure cost minimization — as well as profit maxi- mization — is, in many cases, a strong simplification of the underlying problem. The persis- tent rejection of shareholder value concepts and the continual increase of sustainability as- pects will further influence decision making in the future and lead to an additional rele- vance increase of MCDM approaches in several management areas.

Generally, MOMP approaches are applied to opti- mization problems with some exceptions , non-classical approaches are applied to prob- lems that incorporate high uncertainty, especially uncertainty regarding information quali- ty, and MAUT as well as outranking methods are applied for preference modeling. Multiple criteria decision making in supply chain management In this paragraph we present the results of our literature review.

We start with an intro- duction to our research approach, followed by a general overview on the development of MCDM applications to SCM. This includes academic journals and conference proceedings, but excludes books, master and doctoral theses. We reviewed articles published in the period from to The literature query took place on 30th April We searched within titles and abstracts. Table 1 lists the search terms we considered. However, they also were not excluded, since combinations with qualitative methods and, therefore, considera- tion of qualitative information are possible in mathematical programming approaches.

Overall, papers matched the search terms; were relevant to the topic. The following three conditions with respect to the retrieved articles were evaluated for the decision whether or not to include an article in the review: 1 usage of a multiple criteria approach, 2 consideration of qualitative or intangible information, 3 clear relation to SCM research. As described in the introduction, since reviews on purely mathematical decision support are already sufficiently available, we will focus on approaches that allow for the incorpo- ration of qualitative or intangible information.


  1. Nature Guide to Shenandoah National Park (Falcon Pocket Guides).
  2. Assistive Technology and Artificial Intelligence: Applications in Robotics, User Interfaces and Natural Language Processing.
  3. Customer Reviews.
  4. Multiple Criteria Decision Making in Supply Chain Management!

Therefore, mathematical programming ap- proaches that do not consider qualitative or intangible information are excluded from the review. Furthermore, methods that handle pure quantitative problems, which include qualitative information about uncertainties e. Mahnam et al. In addition, all non multiple criteria applications of fuzzy set theory are excluded e.

In many cases, weightings of multiple criteria Die Unternehmung, Efendigil et al.

Multiple Criteria Decision Making in Supply Chain Management - Google книги

Chan et al. These papers were also excluded. We focus on publications that clearly contribute to SCM relevant research area, e. After eliminating irrelevant contributions, the papers were classified by publication year, journal of publication and whether or not a group decision approach or empirical results are included.

If a contribution uses more than one method, we identified the central method first stated and classified the papers considering up to three MCDM categories and methods. Additionally, we surveyed whether the approaches are integrated. In some cases, different methods are used side by side without interacting with each other. These approaches are classified as not integrated. The last attribute we categorized is the application area within SCM.

The derivation of the different SCM application areas starts at the strategic decision level of design, followed by directly value adding areas, i. We then considered supporting areas, i. How- ever, six publications were not assignable to these application areas and are therefore clas- sified as miscellaneous. Moreover, the reviewed papers in each application area were as- signed to the problem they consider specific application area; e.

The analyses focus on giv- ing a compact insight on the development of the appropriate research field. In addition, the lower part of the table describes shares of papers that include integrated approaches, state case applications or group decision approaches.

Weighted scoring 101 -Learn quickly decision-making matrix, ranking & prioritization matrix (short)

The number of applica- tions has significantly increased in the last six years. In , there is an abrupt rise that is hardly explainable by means of the obtained data in the literature review. One noticeable exception is, in this year eight single contribution journals published only one article in the regarded research area and time frame issued an article.

However, even if the single contribution journals are neglected for this analysis, there is still a leap. Another peculiari- ty is the high number of publications in internationally not well recognized journals in If internationally less recognized journals are neglected for evaluation, there is still a peak, but a less significant one. Regarding the method categorization, MAUT applications are clearly dominant, cer- tainly, due to the exclusion of purely quantitative methods.

Nevertheless, even if purely quantitative methods would have been considered for the review, we expect that MAUT application would still dominate the picture. Integrated approaches represented the greater part of the approaches already from to Furthermore, we reviewed whether the articles integrated a case application of the proposed methodology to a real life problem. Additionally, we surveyed the ratio of MCDM applications explicitly allowing for the consideration of more than one decision maker group decisions.

Table 3 shows MCDM methods applied five or more times in the regarded time frame. The total number of applications exceeds the number of reviewed journals, since a utiliza- tion of two or more methods in a publication is considered. Furthermore, like Wallenius et al. Additionally, fuzzy set theory applications increased in recent years. In 46 articles one, in 58 articles two and in 20 articles three methods are applied. Occasionally, even four methods are employed.

Multi‐criteria supply chain performance evaluation

The increase in method applica- tions per year presents the same picture as the number of contributions per year, a strong increase in However, the number of applications rises after , instead of stag- nating like the number of articles published. Furthermore, the methods to articles ratio total number of applications per year divi- ded by the total number of contributions per year in the last row of Table 3 also indicates increasing application of two or more methods within an application.

Overall, 49 journals contribute to the regarded research area. If purely quantitative approaches would have been considered, too, it is assumed that EJOR would have been positioned at the third place or even higher. Thus, the focus lies on methodologi- cal aspects. The columns show the second method category in combined approaches and the exact method.

Applications of three or more methods in one article are not consid- ered in this analysis. The proportion of non-single approaches in this table is higher than the proportion of integrated approaches. In some cases, different single approaches are ap- plied besides each other, but do not interact and are not integrated. As apparent, AHP and ANP applications are the dominant methods within the reviewed articles, followed by fuz- zy set theory and goal programming approaches. With respect to combined approaches, joint AHP and fuzzy set theory approaches are clearly dominant.

These two methods also represent the approaches most often combined with other methods. The second ranked combination is AHP and goal programming, the top three method combination AHP and integer linear programming. The application areas map important functions in SCM based on the value adding process and supporting activities, as long as MCDM methods have been applied to this functions.

The purchasing area is the most fre- quented area, followed by logistics and performance management. At the beginning of each subsection, we present a table giving an overview of the relevant SCM application area. Within each specific applica- tion area, there is no clear focus. Complete networks, as well as distribution and manufac- turing networks, are also considered. The reviewed papers considered only supply net- works in holistic approaches complete networks ; supply networks are not listed in Table 7.

The most applied method combination, AHP and integer linear programming occurs due to the frequent optimization problems in this area. In comparison with other applica- Die Unternehmung, The share of integrated approaches and papers with case studies differ only slightly from the averages of the whole population. Share of inte- Case studies Specific application Paper Most applied method grated ap- share of total area count or method combination proaches no.

In the application area purchasing, supplier selection is the predominant specific application area with 44 of 54 papers devoted to this topic. The prevalent method and method combination do not deviate significantly from the population although AHP plays a key role. This indicates, that approaches within this application area are more sophisticated than the average approach in the population.

Regarding the specific application area in manufacturing, the focus of MCDM applications is in out- sourcing and production planning. The two main methods are AHP and Goal program- ming. The latter is an indicator for a high number of optimizations concerning production planning. A very mixed application of methods is quite striking within the manufacturing area. The share of integrated approaches is significantly lower and the share of papers with case studies is noticeably higher than in the population.

Only two contri- butions of all reviewed articles concern distribution problems. Both consider distribu- tion planning problems. Certainly, more MCDM applications may be found in this area. However, they are often purely quantitative and therefore not considered in this review. Both articles chosen reveal a different methodological approach. Besides informa- tion sharing, horizontal collaboration between supply chains is the specific application area with the highest number of contributions. Since collaboration is a rather soft and in- tangible application area, AHP as well as AHP in combination with fuzzy set theory emerge unsurprisingly as the most applied method.

Again, the share of integrated papers incorporating case studies does not significantly deviate from the population, although it is slightly higher in both categories. Like in the purchasing area, in the application area logistics, partner selection in form of 3PRLP third party reverse lo- gistics provider and 3PL selection are dominating the field. The selection of partners is of- ten strongly dependent on intangible, qualitative criteria.

Therefore, the most applied meth- od combination AHP as well as integrated AHP and fuzzy set theory approaches do not surprise. However, the share of integrated approaches and the share of papers including case studies are significantly lower than in the population. In this application area, most contributions have no special focus and consider supply chain performance management generally. Hence, the methods applied set out a heterogeneous picture. As far as the share of integrated approaches and papers including case studies, no significant deviations from the population are apparent: both stay slightly above average.

A general description is not very meaningful, since the problems presen- ted differ strongly from each other. The AHP method is clearly dominant. Share of inte- Case studies Paper Most applied method grated ap- share of total count or method combination proaches no. Discussion In this section we will discuss limitations of our literature study, summarize the findings of the earlier sections and derive possible trends of MCDM applications in SCM. Regarding limitations of our literature survey, the review was restricted to academic peer-reviewed articles. Textbooks, master theses and doctoral dissertations were thus not selected; furthermore, only articles in English were considered.

There- fore, applications used in distribution, manufacturing or purchasing without SCM connec- tion have not been examined in our study. Hence, it is possible that some relevant articles did not match our search terms or were not listed in the searched databases. How- ever, we are quite confident about the thoroughness of our study.

Finally, we scrutinized only methods that explicitly allow for the consideration of qualitative or intangible infor- mation within the decision process. Therefore, purely quantitative methods, as well as methods using only qualitative information for the estimation of uncertainties for an input variable e.

For the derivation of future trends of MCDM in SCM, two triggers can be distinguish- ed: a current and future developments in SCM research offer new application areas or re- quire the consideration of criteria not yet considered, and b evolution of MCDM methods may offer new application opportunities in SCM. Second, we considered future developments in SCM and resulting new application areas or areas which may experience a strong shift in its needs, or criteria that must be considered. In the following we will briefly analyze which future trends of MCDM applications in SCM may emerge from these two triggers, considering the results from the literature re- view.

We support and augment our line of argument through a literature review of cur- rent SCM research Giunipero et al. In we expect about 30 publications on MCDM in SCM; 15 articles will already be available by the end of April exceeding the highest number in 25 publi- cations. Furthermore, we assume that the trend toward combining methods will increase, especially among approaches that combine readily with others. Purchasing is the most highly developed application area when ranked by number of publications and share of integrated approaches. In contrast, the application area distribution is largely ignored by academia.

Multiple Criteria Decision Making in Supply Chain Management Multiple Criteria Decision Making in Supply Chain Management
Multiple Criteria Decision Making in Supply Chain Management Multiple Criteria Decision Making in Supply Chain Management
Multiple Criteria Decision Making in Supply Chain Management Multiple Criteria Decision Making in Supply Chain Management
Multiple Criteria Decision Making in Supply Chain Management Multiple Criteria Decision Making in Supply Chain Management
Multiple Criteria Decision Making in Supply Chain Management Multiple Criteria Decision Making in Supply Chain Management
Multiple Criteria Decision Making in Supply Chain Management Multiple Criteria Decision Making in Supply Chain Management
Multiple Criteria Decision Making in Supply Chain Management Multiple Criteria Decision Making in Supply Chain Management

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