Interval analytical approach to roll vendor selection for a large-scale steel-iron enterprise | IEEE Conference Publication | IEEE Xplore

Interval analytical approach to roll vendor selection for a large-scale steel-iron enterprise


Abstract:

Roll vendor selection for a large-scale steel-iron enterprise in China is studied under the uncertain decision making case. Its selection process is formulated as a multi...Show More

Abstract:

Roll vendor selection for a large-scale steel-iron enterprise in China is studied under the uncertain decision making case. Its selection process is formulated as a multiple criteria decision making problem. The interval number analytic hierarchy process is adopted to solve the problem that the decision maker's preference is fuzzy owing to the complex purchasing context and his limited judgment capability. Moreover, to derive the weight from the interval number comparison matrix, a new weight estimation model is suggested based on the weight feasible region and satisfactory consistency of the interval number comparison matrix, which can supply the lower weight value, the possible weight value and the upper weight value. The model is solved via the genetic algorithm. Its availability is exemplified via the case analysis
Date of Conference: 21-23 June 2006
Date Added to IEEE Xplore: 23 October 2006
Print ISBN:1-4244-0332-4
Conference Location: Dalian

I. Introduction

The logistics management is the third benefit source of an enterprise as a new research topic following the production and sale, which plays an important role in market competition. The purchasing logistics as a key component of an enterprise logistics system takes an important proportion. It has a significant effect on the normal production and economic benefit. In addition, it is a crucial tache of the production of an enterprise. Steel-iron industry is representative of the flow industry. The purchasing costs of raw materials, machine equipments, and spare parts hold a dominant fraction in production cost. The characteristics of steel-iron enterprise are continuity of production procedure, the dispersion of vendors and strict requirements to the quality, which lead to the purchasing problem more complex and important. After becoming a member of World Trade Organization (WTO), the steel-iron enterprises in China are challenged with the multinational corporations, which require not only the interior logistics but also the exterior logistics being optimized. In new situation, the relationship between the purchaser and vendor is changed greatly. The purchase action isn't only involved in cost control, but also affects morality and credit standing of the enterprises. The purchasing management level becomes the core competition of a large-scale steel-iron enterprise. Owing to purchasing particularity of the steel-iron, the related literatures for a steel-iron enterprise are relatively few. Unfortunately, no literature focuses on the roll purchasing problem. The roll is crucial spare part of the enterprise production, which has property of high-volume, high-cost. As result, its purchasing cost and quality affect enterprise's competition directly. In many large-scale steel-iron enterprises, the roll vendor selection and roll production management have been added to the Enterprise Resource Planning (ERP).

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References

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