Final supplier selection system in military critical items

Part of : Σπουδαί : journal of economics and business ; Vol.62, No.1-2, 2012, pages 28-46

Issue:
Pages:
28-46
Author:
Abstract:
The financial plans of the Greek Ministry of Defense (MoD) for the year 2013 include a big amount of money in support of the national defense system. Nevertheless, comparing MoD’s annual budgets of the last two years, we can see that in 2013 less money than in 2012 were allocated to the MoD by the Government. This budgetary reduction could lead to the need for improvement in all phases of MoD’s function so that with limited resources, an even better result can be achieved. Supplier selection procedures could not be an exception, especially when it comes to critical supplies and services. Selecting Suppliers in military Critical Safety Items has multi-level features and many factors get involved. This paper develops a conceptual evaluation model based on Public Procurement Law in Defence (3978/2011), Analytic Hierarchy Process and Fuzzy Technique Order Performance by Similarity Ideal Solution. Multivariate Statistical Analysis (i.e. Principal Component Analysis, Factor Analysis and Cluster Analysis) and Quality tools are added to the model, while Business Intelligence/Competitive Intelligence is proposed as an additional tool to deal with the strong competitive environment of our days in a worldwide level. The use of Voronoi diagrams is also suggested as a technique that could affect criteria which are linked with the location of a potential supplier. We believe that the proposed model could end up in improving supplier selection procedures as it integrates contemporary approaches seen in the relevant academic literature with some of the particularities of the Armed Forces.
Subject:
Subject (LC):
Keywords:
military critical items, AHP, TOPSIS-Fuzzy TOPSIS, multivariate statistical analysis, business intelligence, Voronoi diagrams
Notes:
Περιέχει διαγράμματα, εικόνες και βιβλιογραφία
References (1):
  1. Bilsel, R. U. et al., 2006. A fuzzy preference-ranking model for a quality evaluation of hospital websites, International Journal of Intelligent Systems, 21, pp. 1181-1197.Bottani, E., Rizzi, A., 2008. An adapted multi-criteria approach to suppliers and product selectionAnapplication oriented to lead-time reduction, Int.J. Production Economics 111, pp. 763-781.Cebi, F., Bayraktar, D., 2003. An integrated approach for supplier selection, Logistics InformationManagement, Vol. 16, pp. 395-400.Cheng, C. H. et al., 1999. Evaluating attack helicopters by AHP based on linguistic variable weights,European Journal of Operational Research, 116, pp. 423-435.Chopra, S., Meindl, P., 2004. Supply Chain Management, Pearson Education, New Jersey, USA.Dag˘deviren, M. et al., 2009. Weapon Selection using the AHP and TOPSIS methods under Fuzzyenvironment, Expert Systems with Applications, Vol. 36, pp. 8143-8151.De Boer, L. et al., 2001. A review of methods supporting supplier selection, European Journal ofPurchasing and Supply Management, Vol. 7, pp. 75-89.Defense Acquisition University (http://www.dau.mil), 2010. Defense Acquisition Guidebook, USA.Degraeve, Z. et al., 2000. An evaluation of vendor selection models from a total cost of ownershipperspective, European Journal of Operational Research 125, pp. 34-58.Department of Defense, 2010. Army Aviation Accident Prevention Program 2010-Army Pamphlet385-90 Rapid Action Revision of Feb. 2010, Washington, USA.Department of Defense, 2003. DoD 4140.1-R-Supply Chain Materiel Management Regulation,Washington, USA.Dulmin, R., Mininno, V., 2003. Supplier selection using a multi criteria decision aid method, Journalof Purchasing & Supply Management 9, pp. 177-187.Greek Law 3871-Article 21, 2010. Available unrestricted in http://www.et.gr, last assessed in Sep. 2012.Greek Law 3978-Chapter E, 2011. Available unrestricted in http://www.et.gr, last assessed in Sep. 2012.Gu..ler, E., 2008. Incorporating multi-criteria considerations into supplier selection problem usingAnalytical Hierarchy Process: A case Study, Journal of Yas¸ar University 3(12), pp. 1787-1810.Hellenic MoD, 1998. GQAR-Government Quality Assurance Regulation (in Greek).Hellenic Open University (HOU), 2000. Total Quality (in Greek), Patras, Greece.Hellenic Open University (HOU), 2000. Quality Planning (in Greek), Patras, Greece.Herring Jan, P., 1992. The Role of Intelligence in Formulating Strategy, Journal of Business Strategy,Vol. 13 (5), pp. 54-60.Hsu et al., 2006. Supplier Selection Construct: Instrument development and validation. The InternationalJournal of logistics Management, Vol. 17, No 2, pp. 213-239.Imhoff, C., 2003. “Keep your Friends Close, and your Enemies Closer”, DM Review, (13)4, pp. 36-37.Jiang, L. et al., 2011. Strategic Models for Business Intelligence. In M. Jeusfeld, L. Delcambre, andT.W. Ling (Eds.): ER 2011, LNCS 6998, pp. 429-439, 2011.Johnson, R., Wichern, D., 2007. Applied Multivariate Statistical Analysis, Pearson Prentice Hall,New Jersey, USA.Joint Logistics Commanders/Department of the US Navy, 2005. “ACSIMH-Aviation Critical Safetyitem Management Handbook”, Patuxent River, USA.Hartley, K., 2007. Chapter 33 - The arms industry, procurement and industrial polices. In: Sandler,T., Hartley, K., 2007. Handbook of Defence Economics, Vol. 2, England.Kim, Y., Hoffmann, C., 2003. Enhanced battlefield visualization for situation awareness, Computers& Graphics Vol. 27, pp. 873-885.Konstantopoulos, I., 2010. Economy and Espionage, Quality Publications (in Greek), Athens, Greece.Krause et al., 1998. “An empirical investigation of supplier development: reactive and strategicprocesses, Journal of Operations Management, Vol. 17, pp. 39-58.Laios, L., 2010. Supply Management, HUMANTEC Publications (in Greek), Piraeus, Greece.Lee, E-K. et al., 2001. Supplier Selection and Management System Considering Relationships inSupply Chain Management, IEEE transactions on Engineering management, Vol. 48, No 3.Liu, F., Hai, H.L., 2005. The voting analytic hierarchy process method for selecting supplier, InternationalJournal of Production Economics 97 (3), pp. 308-317.Lt General Pagonis, 1992. “Moving Mountains: Lessons in Leadership and Logistics from the gulfWar”, Harvard University Press, USA.Mon, D. L. et al., 1994. Evaluating weapon system using fuzzy analytic hierarchy process based onentropy weight, Fuzzy Sets and Systems 62, pp. 127-134.Moores, L., 2003. WebQL Harvests Competitive Prices for Illuminet, last assessed in Sep. 2012, availableon http://www.informationmanagement.com/issues/20020701/5360-1.html.NATO Support Agency, 2012. NAMSA Procurement Regulations Functional Directive 251-01Amendment 6, Capellen, G.D. of Luxembourg.Negash, S., 2004. Business Intelligence, Communications of the Association for Information Systems,Vol. 13, Article 15.Ng, T., Skitmore, R.M., 1995. CP-DSS: decision support system for contractor prequalification,Civil Engineering Systems: Decision Making Problem Solving, Vol. 12, pp. 133-160.Novaes, A.G.N. et al., 2009. Solving continuous location-districting problems with Voronoi diagrams,Computers & Operations Research, 36(4), pp. 40-59.Okkonen, J. et al., 2002. Triangle of Business Intelligence, Performance measurement and KnowledgeManagement, Finland Tampere University of Technology.Patton, W., 1996. “Use of human judgment Models in industrial buyer’s vendor selection decisions”,Industrial Marketing Management, (25), pp. 135-149.Petroni, A., Braglia, M., 2000. Vendor Selection Using Principal Component Analysis, The Journalof Supply Chain Management: A Global Review of Purchasing and Supply, 36, 2:63-69.Public Document F.800/133/134893/S.3323 issued in 2007 (in Greek), available on http://www.et.gr/search with search criterion: FEK 2300B/2007, last assessed in Sep. 2012.Public Document F.800/224/138325/S.2551 issued in 2011 (in Greek), available on http://et.diavgeia.gov.gr/f/ypetha with search criterion: ADA:BOND6-DE3, last assessed in Dec. 2011.Public Document F.812/91/135598/S.2361 issued in 2012, available on http://et.diavgeia.gov.gr/f/ypetha with search criterion: ADA:B45N6-P0T, last assessed in Dec. 2012.Saaty, T.L., 1980. The analytic hierarchy process, Mc Graw-Hill, New York, USA.Sen, C.G. et al., 2010. Pre selection of suppliers through an integrated fuzzy analytic hierarchy processand max-min methodology, International Journal of Production Research Vol. 48, No 6,pp. 1603-1625.Siying, W. et al., 1997. “A Supplier-Selecting System Using a Neural Network”, IEEE InternationalConference on Intelligent Processing Systems, pp. 468-471.Shyur, H.J., 2006. COTS evaluation using modified TOPSIS and ANP, Applied Mathematics andComputation, 17, pp. 251-259.Soukup, W., 1987. Supplier Selection Strategies, Journal of Purchasing and Materials Management,Vol. 23 (3), pp. 7-12.Stathopoulos, A., 2010. The Calculation of Optimal Position through Voronoi Diagrams, MSc Thesis (in Greek), University of Patras.Thomas, J., 2001. Business Intelligence-Why?, eAI Journal, pp. 47-49.Thomsen, E., 2003. “BI’s Promised Land”, Intelligent Enterprise, (6)4, pp. 21-25.Verma, R., Pullman, M., 1998. An analysis of the supplier selection process, Omega, 26,6, pp. 739-750.Weber, C.A. et al., 1991. Vendor selection criteria and methods, European Journal of OperationalResearch, 50 (1), pp. 2-18.Wong et al., 2003. Military Leadership: A context specific review, The Leadership Quarterly 14, pp.657-692.Yuva, J., 2001. Collaboration Adds to Supply Management’s Success, Purchasing Today, Vol. 12.http://www.army.gr (official site of the Hellenic Army), available unrestricted, last assessed in Sep.2012.(http://www.army.gr/default.php?pname=Epitelika&la=1)http://greeklawdigest.gr, last assessed.in Aug. 2012. (http://greeklawdigest.gr/topics/banking-system-finance-investment/item/43-public-procurement-projects).