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Top2. The Problem Statement
It is noticeable that two kinds of problems exist in supplier selection problems; in type 1, supplier can provide all the needs of the organization. In type 2, a supplier can not to provide all needs of the organization on its own. As a result, management should decide to sort the suppliers and allocate the amount of orders based on desirability and preference. Thus, two questions must be answered in this kind of problem: first, which suppliers are the best, and second, how much should be bought from each supplier? (Erdogmus et al., 2008)
Two points are important in second kind of problem –that also included this research. What standards must be attended, what methods can be used to compare suppliers and finally how much the share of each supplier from amount of the order must be?
Furthermore, it should be noticed that supplier selection of the organization is a strategic decision and it has an effective role in supply chain and organization. Because of this strategic nature, supplier selection must be in the direction of organization’s strategy. But there is a question how to choose the proper supplier according to organization’s strategy in order to gaining the most opportunity and avoiding high costs and risks? Answering this question needs a systematic and complete evaluation. So, to reach the purpose, BOCR model can be used. This model has a completely systematic view, not only the short-term but also long-term targets are mentioned in the concept of this model. Also, positive and negative, tangible and intangible factors can be covered (Chao & Qing, 2007).
Therefore in this research, in order to evaluate and select the suppliers strategically, we are to answer the following question:
- 1.
Which are the effective criteria to select proper suppliers in Saipa Co. according to BOCR model?
- 2.
How is the importance of the final selected criteria?
- 3.
How to weigh and prioritize the criteria to rate components' suppliers?
- 4.
Which combination of suppliers meets the components' demand?
The Analytic Network Process (ANP) under Base Overhead Cost Recovery (BOCR) structure is used for selecting criteria and for allocating the orders to suppliers along the programming period, Goal programming is used with attention to different wanted Goals.