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    Construction of capital procurement decision making model to optimize supplier selection using Fuzzy Delphi and AHP-DEMATEL

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    Authors
    Kumar, Anil
    Pal, Amit
    Vohra, Ashwani
    Gupta, Sachin
    Manchanda, Suryakant
    Dash, Manoj Kumar
    Affiliation
    BML Munjal University
    Indian Institute of Information Technology and Management
    Issue Date
    2018-07-02
    
    Metadata
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    Abstract
    Purpose – Supplier selection for capital procurement is a major strategic decision for any automobile company. The decision determines the success of the company and must be taken systematically with the utmost transparency. Therefore, the aim of this study is the construction of capital procurement decision making models to optimize supplier selection in the Indian automobile industry. Design/methodology/approach – To achieve the stated objective, a combined approach of fuzzy theory and AHP-DEMATEL is applied. Evaluation parameters are identified through an extensive literature review and criteria validation has been introduced through a Fuzzy Delphi method by using fuzzy linguistic scales to handle the vagueness of information. AHP is employed to find the priority weight of criteria although an inter-relationship map among criteria is not possible through AHP alone since it considers all criteria as independent. To overcome this, DEMATEL is used to establish cause-effect relationships among criteria. Findings – The results show that the total cost of ownership is the first weighted criterion in supplier selection for capital procurement, followed by manufacturing flexibility and maintainability, then conformity with requirement. The cause-effect model shows that supplier profile, total cost of ownership, service support and conformity with requirement are in the cause group and are considered to be the most critical factors in selecting the supplier. Originality/value – The study’s outcome can help the automobile industry to optimize their selection process in selecting their suppliers for capital procurement; the proposed model can provide guidelines and direction in this regard.
    Citation
    Kumar, A. et al. (2018) ‘Construction of capital procurement decision making model to optimize supplier selection using Fuzzy Delphi and AHP-DEMATEL’, Benchmarking: An International Journal, 25 (5), pp.1528-1547. doi:10.1108/BIJ-01-2017-0005
    Publisher
    Emerald
    Journal
    Benchmarking: An International Journal
    URI
    http://hdl.handle.net/10545/623208
    DOI
    10.1108/BIJ-01-2017-0005
    Additional Links
    https://www.emeraldinsight.com/doi/10.1108/BIJ-01-2017-0005
    Type
    Article
    Language
    en
    ISSN
    1463-5771
    ae974a485f413a2113503eed53cd6c53
    10.1108/BIJ-01-2017-0005
    Scopus Count
    Collections
    Centre for Supply Chain Improvement

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