Two-stage model for the evaluation suppliers in different types of supply chains

Rejman Petrovic

Predrag Mimovic
Faculty of Economics
University of Kragujevac

Publication date: May, 2019

Journal: International Journal for Quality research
Vol.: 13- Issue: 3- Pages: 669-688

Abstract: Purpose - The purpose of this paper is to, based on the model developed to improve supplier performance and models for supplier evaluation and ranking in different types of supply chains, contribute to the expansion of existing conceptual frameworks for measuring supplier performance, indicating that some key performance indicators used to evaluate and rank suppliers have a different relative importance in different types of supply chains. Design/methodology/approach - The research includes evaluation, ranking, and comparison of six suppliers belonging to an efficient type of supply chain and an agile type of supply chain. For the evaluation and ranking of suppliers by types of supply chains, the analytic hierarchy process (AHP) and the data envelopment analysis (DEA) are combined. Novelty - Research in this field has dealt with supplier evaluation and ranking without taking into account the characteristics of different types of supply chains. The contribution of this paper lies in the development of a new model for supplier evaluation and ranking, taking into account the priorities of key performance indicators in different types of supply chains, providing management support in decision-making through simulation and finding the optimal solution for a particular supply chain. Practical implications - Developed and proposed models provide company management with the opportunity to apply a multiple-criteria decision-making model as a support in evaluating and ranking suppliers in different types of e-supply chains.

Keywords: Supply chain management, Key Performance Indicator, AHP, DEA