AEM 6210: Logistics Management

Dr. Syed Mithun Ali, Department of

IPE, BUET, Dhaka
E-mail: syed.mithun@gmail.com
Selecting the suppliers

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Lecture 4: Selecting the Suppliers
 Selecting the Suppliers

 Single sourcing (SS)

 Multiple sourcing (MS)

• Is SS is advantageous over MS?: Why?

Why NOT?

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 Supplier Management

 THREE Steps:
1. Finding the set of potential suppliers
2. Definition of selection criteria
3. Supplier selection

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Supplier Management

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Supplier Management
 Finding the set of potential suppliers
-Sources of Information:
a) Specialized magazines
b) Search engines
c) Trade fairs
d) Organized meetings

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Definition of selection criteria
(Example 1)

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Definition of selection criteria
(Example 2)

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 Evaluating the Weight of the selection
criteria

--Analytic hierarchy process (AHP) can be applied.

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AHP (Contd.)

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AHP (Contd.): The ideas of pairwise
comparison matrix

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AHP (Contd.): Check the calculations!

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Selecting the supplier: How?

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Selecting the supplier: Example

In the Suntech Solar problem, an evaluation grid of four

suppliers of monocrystalline photovoltaic cells (Table
4.4) is assumed to be available. Using the weighted
scoring method, the most preferable supplier is the
second one, followed by the fourth (in case of the
adoption of a MS policy with two suppliers).

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Selecting the supplier: Example

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Selecting the supplier: Can
Optimization Model be formulated?

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Selecting the supplier: Can Optimization
Model be formulated?

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Selecting the supplier: Optimization
model example

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Selecting the supplier: Optimization
model

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Appendix: Supplier selection

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Pareto Optimal Solution

Source: Liu, X., IJzerman, A. P., & van Westen, G. J. (2020). Computational approaches
for de novo drug design: past, present, and future. Artificial neural networks, 139-165.
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Thank you

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 Acknowledgement
The text book and web sources!

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