Multicriteria Model to Sort Suppliers in a Brazilian Dairy Industry

Multicriteria Model to Sort Suppliers in a Brazilian Dairy Industry

Ana Maria Rodrigues Silva (Federal Rural University of Pernambuco, Ponte dos Carvalhos, Brazil) and Marcos Felipe Falcao Sobral (Federal Rural University of Pernambuco, Ponte dos Carvalhos, Brazil)
Copyright: © 2017 |Pages: 12
DOI: 10.4018/IJDSST.2017070103
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Abstract

This paper describes a real application of a multicriteria decision aid to sort suppliers in the Brazilian dairy industry located in Serra Talhada City. This region is very arid, and farmers have difficulty maintaining the quality required for dairy production. Five criteria were identified by the dairy farmers: production capacity, product quality, cost, transportation and distance from the manufacturing site. The most appropriate method was chosen to sort clients with respect to the preferred structure of the decision maker to obtain the parameters. This study involved eight milk suppliers that were allocated into three ordinated classes. No supplier was allocated into the best class (very good), five were considered regular, and three were inadequate. The use of multicriteria modeling enabled the decision maker to establish a new metric to evaluate suppliers while simultaneously considering multiple criteria.
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2. Choosing Suppliers

As supply chains become increasingly complex and global in their scale, supplier selection has become one of the most challenging tasks for modern managers (Araz and Ozkarahan, 2007). Academics and practitioners agree that excellence in supply management results in improved quality, customer service, and channel performance (Selitto et al., 2013). In recent years, methods for identifying suitable providers in the supply chain have become a key strategic consideration (Thomas and Griffin, 1996).

Supplier selection for specified goods and services is a critical decision for many purchasing organizations because supply performance can have a direct financial and operational impact on a business (Souza et al., 2012; Zorzate et al., 2005). Study of the supplier selection process is therefore useful for testing the influence of operational and relational criteria on the selection decision (Souza et al., 2012). Because of their increasing importance, supplier selection and evaluation have received greater attention in recent publications (Pareto, 1946).

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