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A Modular-Based Supplier Evaluation Framework: A Comprehensive Data Analysis of ANP Structure

Author

Listed:
  • Daji Ergu

    (Southwest University for Nationalities, Chengdu 610041, China)

  • Gang Kou

    (School of Business Administration, Southwestern University of Finance and Economics, Chengdu 610074, China)

  • Jennifer Shang

    (Joseph M. Katz Graduate School of Business, University of Pittsburgh, Pittsburgh, PA 15260, USA)

Abstract

The analytical network process (ANP) has been widely used to evaluate the suppliers, an important subject in supply chain management. We propose an integrated ANP-based evaluation model, which systematically examines six key decision-making modules. They are: questionnaire design, matrix classification, consistency test, inconsistency identification, uncertain or missing values estimation, and sensitivity analysis of rank reversal. Module 1 involves questionnaire design formats, and Module 2 classifies the collected data. Module 3 introduces the maximum eigenvalue threshold as a critical value for consistency test. The induced bias matrix model (IBMM) is employed in Modules 4 and 5 to identify the inconsistent elements and to estimate the uncertain or missing values. In Module 6, we extend the concept of the IBMM to check for rank reversal when a new alternative or criterion is added that perturbs the evaluation system. The case company in the healthcare device industry under study validates that the proposed method is effective. The integrated model not only improves the questionnaire design and simplifies the ANP consistency tests, but also effectively identifies the inconsistent elements and estimates the missing values. The innovative approach to sensitivity analysis is especially insightful and contributes to the understanding of rank reversal issue.

Suggested Citation

  • Daji Ergu & Gang Kou & Jennifer Shang, 2014. "A Modular-Based Supplier Evaluation Framework: A Comprehensive Data Analysis of ANP Structure," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 13(05), pages 883-916.
    • Handle: RePEc:wsi:ijitdm:v:13:y:2014:i:05:n:s0219622014500679
    DOI: 10.1142/S0219622014500679
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    References listed on IDEAS

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    1. Daji Ergu & Gang Kou & Yi Peng & Yong Shi, 2011. "A New Consistency Index for Comparison Matrices in the ANP," Lecture Notes in Economics and Mathematical Systems, in: Yong Shi & Shouyang Wang & Gang Kou & Jyrki Wallenius (ed.), New State of MCDM in the 21st Century, chapter 0, pages 47-56, Springer.
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    Cited by:

    1. Ahmed Mohammed & Morteza Yazdani & Amar Oukil & Ernesto D. R. Santibanez Gonzalez, 2021. "A Hybrid MCDM Approach towards Resilient Sourcing," Sustainability, MDPI, vol. 13(5), pages 1-30, March.
    2. Viral Gupta & P. K. Kapur & Deepak Kumar, 2019. "Prioritizing and Optimizing Disaster Recovery Solution using Analytic Network Process and Multi Attribute Utility Theory," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 18(01), pages 171-207, January.
    3. Zhi-Hua Hu & Yingxue Zhao & Sha Tao & Zhao-Han Sheng, 2015. "Finished-vehicle transporter routing problem solved by loading pattern discovery," Annals of Operations Research, Springer, vol. 234(1), pages 37-56, November.

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