Authors:
Mariagrazia Dotoli
and
Marco Falagario
Affiliation:
Politecnico di Bari, Italy
Keyword(s):
Business Intelligence, Supply Chain Management, Supplier Evaluation and Selection, Decision Support System, Data Envelopment Analysis, Analytic Hierarchy Process, Linear Programming.
Related
Ontology
Subjects/Areas/Topics:
Applications
;
Artificial Intelligence
;
Best Practices & Communities of Practice
;
Business Intelligence
;
Communities of Practice
;
Computer-Supported Education
;
Knowledge Management and Information Sharing
;
Knowledge-Based Systems
;
Learning/Teaching Methodologies and Assessment
;
Society, e-Business and e-Government
;
Software Engineering
;
Symbolic Systems
;
Web Information Systems and Technologies
Abstract:
The paper addresses a crucial objective of the strategic function of purchasing in supply chains, i.e., vendor rating, proposing a hierarchical model for supplier business intelligence. A three-level optimization process for supplier selection in a multiple sourcing strategy context is proposed. First, the Data Envelopment Analysis, the most widespread method for supplier selection, is used to evaluate the efficiency of suppliers. Second, the well-known Analytic Hierarchy Process is applied to rank the efficient suppliers given by the previous step. Third, a linear programming problem is solved to find the quantities to order from each efficient supplier. We show the model effectiveness on a simulated case study of a C class component.