Integrated methodology for supplier selection: the case of a sphygmomanometer manufacturer in Taiwan

Abstract

Supplier selection is a critical multi-criterion decision-making activity for suc- cessful supply chain management. This study involved developing an integrated supplier selection methodology, which is constructed using analytic network process, data envelop- ment analysis, and multiple objective particle swarm optimization. The proposed integrated methodology can account for multiple supplier selection criteria and set boundaries on weight value for multiple objective data envelopment analysis inputs and outputs. To solve the data envelopment analysis model, a new algorithm based on multiple objective particle swarm optimization is introduced, which embeds with tabu list and group mechanisms, and then, it is found to be superior to the compared algorithms in solving performance on three test functions and the illustrative case. In addition, the proposed integrated method- ology was applied to a supplier selection problem of sphygmomanometer manufacturer in Taiwan to verify its applicability of decision-making process. The results show that the methodology can be implemented as an effective decision aid for supplier selection under multiple criteria with weight restrictions.

Keyword : supplier selection, decision-making, ANP, DEA, PSO, algorithm