Implementation Of The Best-Worst Method For Supplier Selection Of Products Transportation Service In A Pharmaceutical Company
Article Sidebar
Main Article Content
Abstract
Supplier selection is an important aspect that must be carried out properly to ensure that the company's supply chain can run well. PT. XZ is a pharmaceutical company that regularly require product transportation service from a dedicated supplier. Currently the supplier selection process in the company is a general process that can be applied for any supplier selection case yet does not have an adjustable criteria and weight to accommodate different evaluation standard for different case. The company prefer to simplify the selection process by neglecting the criteria selection and weight calculation. Numerous studies in the field of multi-criteria decision-making (MCDM) have delved into methods to enhance the supplier selection process and minimize errors. This research aims to assess supplier selection, identify relevant criteria, and incorporate the best-worst method to optimize the choice of the most suitable supplier for product transportation services. The best-worst method (BWM) is employed to assign weights to criteria by utilizing user preference ratings, resulting in a refined and accurate criterion weighting process. With the determined criteria, the alternatives are evaluated by individual assessment form. The evaluation score is normalized and multiplied by the weight with the respect of the specific criteria to find the final weighted score. The result is one of the logistic company’s scores is higher than the other alternatives which indicates that alternative is the best to be chosen.
Manuscript received: 7 May 2023 | Revised: 1 August 2023 | Accepted: 28 August 2023 | Published: 30 September 2023
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
References
S. Chopra and P. Meindl, “Supply chain management: strategy, planning, and operation,” New Jersey: Pearson Education, Inc., 2013, URL: https://books.google.com.my/books/about/Supply_Chain_Management_Strategy_Plannin.html?id=gPDQCQAAQBAJ&source=kp_book_description&redir_esc=y (accessed: 28 Aug, 2023) .
D. J. Bowersox, D. J. Closs, and B. Cooper, “Supply Chain Logistics Management,” New York: The McGraw-Hill Companies, 2002, URL: https://www.mheducation.com/highered/product/Supply-Chain-Logistics-Management-Bowersox.html (Accessed: 28 Aug, 2023).
A. Haldar, U. Qamaruddin, R. Raut, S. Kamble, M. G. Kharat, and S. J. Kamble, “3PL evaluation and selection using integrated analytical modeling,” Journal of Modelling in Management, vol. 12, no. 2, pp. 224–242, 2017, DOI: https://doi.org/10.1108/JM2-04-2015-0016.
J. Rezaei, “Best-Worst Multi-Criteria Decision-Making Method,” Omega, vol. 53, pp. 49–57, Jun. 2015, DOI: https://doi.org/10.1016/j.omega.2014.11.009.
P. Pitchipoo, P. Venkumar, and S. Rajakarunakaran, “Modeling and development of a decision support system for supplier selection in the process industry,” Journal of Industrial Engineering International, vol. 9, no. 1, 2013, DOI: https://doi.org/10.1186/2251-712X-9-23.
U. M. Modibbo, M. Hasan, A. Ahmed, and I. Ali, “Multi-criteria decision analysis for pharmaceutical supplier selection problem using fuzzy TOPSIS,” Management Decision, vol. 60, no. 3, pp. 806–836, 2022, DOI: https://doi.org/10.1108/MD-10-2020-1335.
M. Punniyamoorty, P. Mathiyalagan, and G. Lakshmi, “A combined application of structural equation modeling (SEM) and analytic hierarchy process (AHP) in supplier selection,” Benchmarking: An International Journal, vol. 19, no. 1, pp. 70–92, 2012, DOI: https://doi.org/10.1108/14635771211218362.
V. Yadav and M. K. Sharma, “An application of hybrid data envelopment analytical hierarchy process approach for supplier selection,” Journal of Enterprise Information Management, pp. 218–242, 2015, DOI: https://doi.org/10.1108/JEIM-04-2014-0041.
J. Sharma and B. B. Tripathy, “An integrated QFD and fuzzy TOPSIS approach for supplier evaluation and selection,” The TQM Journal, Jan. 2023, DOI: https://doi.org/10.1108/TQM-09-2022-0295.
S. Kheybari and A. Ishizaka, “The behavioural best-worst method,” Expert Systems with Applications, vol. 209, p. 118265, Dec. 2022, DOI: https://doi.org/10.1016/j.eswa.2022.118265.
F. Liang, M. Brunelli, and J. Rezaei, “Consistency issues in the best worst method: Measurements and tresholds,” Omega, vol. 96, no. 102175, pp. 305–483, 2020, DOI: https://doi.org/10.1016/j.omega.2019.102175.