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Optimization of supplier selection problem by combined customer trust and resilience engineering under uncertainty

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Abstract

Trust between suppliers and producers would increase productivity and quality. Incorporation of resilience engineering has also proven to enhance efficiency. This study presents an integrated customer trust and resilience engineering algorithm for optimum supplier selection in a real auto parts manufacturer. The proposed algorithm is composed of standard questionnaires, fuzzy mathematical programming, statistical methods, and verification and validation mechanism. Resilience engineering (flexibility, adaptability and redundancy) and customer trust (integrity, benevolence, ability and predictability) are considered as outputs and cost and delivery time are considered as inputs to select best suppliers. Fuzzy mathematics is used to achieve improved results due to existence of data subjectivity and uncertainty. Moreover, fuzzy data envelopment analysis (fuzzy DEA) is designed and applied for various alpha cuts. The results show integration of customer trust and resilience engineering will increase total efficiency. The result identifies the most important factors in supplier selection problem with respect to trust and resilience engineering. The best supplier can also be selected. Predictability and redundancy have the highest impact on total efficiency, respectively. This is the first study that simultaneously considers resilience engineering, customer trust, cost and delivery time to select optimum supplier. Second, it uses a robust algorithm to achieve such objective. Third, it is equipped with verification and validation mechanism. Fourth, it is a practical approach for decision makers.

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Acknowledgements

The authors are grateful for the valuable comments and suggestions by the respected reviewers, which have enhanced the strength and significance of this work. This study was supported by a grant from the Iran National Science Foundation [grant number 95848814]. The authors are grateful for the financial support provided by the Iran National Science Foundation.

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Authors and Affiliations

  1. School of Industrial Engineering, Center of Excellence for Intelligent Based experimental Mechanic and Department of Engineering Optimization Research, College of Engineering, University of Tehran, Tehran, Iran

    A. Azadeh, R. Siadatian & M. Rezaei-Malek

  2. Design, Manufacturing Engineering and Control Laboratory (LCFC), Arts et Métiers, École Nationale Supérieure d’arts et Métiers (ENSAM), ParisTech, Centre de Metz, Metz, France

    M. Rezaei-Malek

  3. Department of Molecular Biology, Islamic Azad University, Tehran Medical Branch, Zargandeh, Tehran, Iran

    F. Rouhollah

Authors
  1. A. Azadeh
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  2. R. Siadatian
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  3. M. Rezaei-Malek
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  4. F. Rouhollah
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Corresponding author

Correspondence to A. Azadeh.

Appendices

Appendix 1: Design of questionnaire

1. Delivery time:

1.1. Is the supplier able to deliver the ordered products on time?

1.2. In times of crisis, is the supplier able to deliver the extra requested products on time?

2. Cost:

2.1. Does the price of the supplier’s products enjoy acceptable stability under the fluctuations in market?

2.2. Does the supplier have sufficient funding to compensate for the belated financial settlement on our part?

3. Ability:

3.1. Is the supplier technologically able to meet our needs in case of any changes in demands?

3.2. Is the supplier able to deliver more than the amount of ordered products, if necessary?

4. Integrity:

4.1. Has the supplier been loyal to the fulfillment of their obligations with respect to their history of cooperation with us?

4.2. Has the supplier been honest regarding the desired quality of the delivered products?

5. Benevolence:

5.1. Does the supplier work for the advantage of our organization regardless of profit-based purposes?

5.2. Are the supplier assign importance to the goals of our organization?

6. Predictability:

6.1. Is the performance of the supplier predictable and does it follow an acceptable performance?

6.2. Is it possible to predict that the past successes of the supplier guarantee their future success?

7. Flexibility:

7.1. Does the supplier have the flexibility to change the prices due to existent competition in the market?

7.2. Is the supplier able to quickly guarantee their final product under the fluctuations of their raw material quality?

8. Redundancy:

8.1. Is the supplier able to improve and increase their production capacity?

8.2. Has the supplier the possibility of product delivery through the warehouse, if an unexpected event occurs?

9. Adaptability:

9.1. Does the supplier have the required compatibility with the changes in customers’ tastes?

9.2. In the event of any change in the market, does the supplier have the necessary compatibility with these changes regarding the delivery of their after-sales service?

Appendix 2: Raw data

See Table 9.

Table 9 The preliminary data of the suppliers (SP)
Full size table

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Azadeh, A., Siadatian, R., Rezaei-Malek, M. et al. Optimization of supplier selection problem by combined customer trust and resilience engineering under uncertainty. Int J Syst Assur Eng Manag 8 (Suppl 2), 1553–1566 (2017). https://doi.org/10.1007/s13198-017-0628-2

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  • DOI: https://doi.org/10.1007/s13198-017-0628-2

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