October  2011, 7(4): 907-925. doi: 10.3934/jimo.2011.7.907

An integrated approach for selection of service vendors in service supply chain

1. 

School of Management, Hefei University of Technology, Hefei, Anhui 230009, China, China

2. 

Jack Baskin School of Engineering, University of California, Santa Cruz, CA 94043, United States

3. 

School of Management, University of Science and Technology of China, Hefei, Anhui 230026, China

Received  October 2010 Revised  June 2011 Published  August 2011

We explore the basic conceptual framework to imagine service supply chain that is a new research concern in supply chain management, and develop an integrated approach to optimize the selection of service vendors. Three insights arise on how service vendors can be obtained: (1) exploring multiple criteria decision-making problems with incomplete weight information; (2) identifying and eliminating criteria by information entropy method; (3) analyzing and calculating the final selection of qualified service vendors through a combining way between the fuzzy analytic hierarchy process and the multi-objective linear programming approach. Finally, an experiment implemented highlights effectiveness of the integrated approach.
Citation: Fei Cheng, Shanlin Yang, Ram Akella, Xiaoting Tang. An integrated approach for selection of service vendors in service supply chain. Journal of Industrial and Management Optimization, 2011, 7 (4) : 907-925. doi: 10.3934/jimo.2011.7.907
References:
[1]

G. Allon and A. Federgruen, Competition in service industries with segmented markets, Management Science, 55 (2003), 619-634. doi: 10.1287/mnsc.1080.0946.

[2]

S. H. Amin, J. Razmi and G. Zhang, Supplier selection and order allocation based on fuzzy SWOT analysis and fuzzy linear programming,, Expert Systems with Applications, (). 

[3]

E. G. Anderson and D. J. Morrice, A simulation game for service-oriented supply chain management, Production and Operations Management, (2000), 40-45.

[4]

L. Berry, V. Shankar and J. Parish, Creating new markets through service innovation, MIT Sloan Management Review, 47 (2006), 56-63.

[5]

N. Bhuiyan, E. Shuiabi and V. Thomson, Entropy as a measure of operational flexibility, European Journal of Operational Research, 165 (2005), 696-707.

[6]

O. Cakir, On the order of the preference intensities in fuzzy AHP, Computers and Industrial Engineering, 54 (2008), 993-1005. doi: 10.1016/j.cie.2007.11.010.

[7]

X. Chao, L. Liu and S. Zheng, Resource allocation in multisite service systems with interstice customer flows, Management Science, 49 (2003), 1739-1752.

[8]

R. B. Chase, The mall is my factory: Lessons from a service junkie, Production and Operation Management, 5 (1996), 298-308. doi: 10.1111/j.1937-5956.1996.tb00402.x.

[9]

S. S. Chauhdry, F. G. Forst and J. L. Zydiak, Vendor selection with price breaks, European Journal of Operational Research, 70 (1993), 52-66. doi: 10.1016/0377-2217(93)90232-C.

[10]

I. J. Chen and A. Paulraj, Understanding supply chain management: Critical research and a theoretical framework, International Journal of Production Research, 42 (2004), 131-163.

[11]

L. H. Chen and H. W. Lu, An approximate approach for ranking fuzzy numbers based on left and right dominance, An International Journal of Computers and Mathematics with Applications, 41 (2001), 1589-1602.

[12]

C. H. Cheng, Evaluating naval tactical missile systems by fuzzy AHP based on the grade value of membership function, European Journal of Operational Research, 96 (1996), 343-350.

[13]

S. J. Cook, Kathy DeBree and Amie Feroleto, From raw materials to customers: Supply chain management in the service industry, SAM Advanced Management Journal, 66 (2002), 14-19.

[14]

K. L. Croxton, S. J. Garcia-Dastugue, D. M. Lambert and D. L. Rogers, The supply chain management process, International Journal of Logistics Management, 12 (2001), 13-36.

[15]

Z. Dagraeve and F. Roodhooft, A mathematical programming approach for procurement using activity based costing, Journal of Business Finance and Accounting, 27 (2000), 69-98.

[16]

H. Dernirkan and H. K. Cheng, The risk and information sharing of application services supply chain, European Journal of Operational Research, 187 (2008), 765-784.

[17]

D. de Waart and S. Kemper, 5 steps to service supply chain excellence, Supply Chain Management Review, 8 (2004), 28-35.

[18]

L. M. Ellram, W. L. Tate and C. Billington, Understanding and managing the service supply chain, Journal of Supply Chain Management, (2004), 17-32.

[19]

J. R. Figueira, A. Liefooghe, E. G. Talbi and A. P. Wierzbicki, A parallel multiple reference point approach for multi-objective optimization, European Journal of Operational Research, 205 (2010), 390-400.

[20]

G. Friezlle and J. Efstathiou, "Seminar Notes on 'Measuring Complex Systems,'" London School of Economics, 2002.

[21]

G. Galante, G. Aiello, M. Enea and E. Panascia, A parallel multiple reference point approach for multi-objective optimization, Waste Management, 30 (2010), 1720-1728.

[22]

M. X. He and P. E. Ricci, Information entropy of orthogonal polynomials, Orthogonal Systems and Applications, Applied Mathematics and Computation, 128 (2002), 261-274. doi: 10.1016/S0096-3003(01)00075-3.

[23]

S. Jharkharia and R. Shank, Selection of logistics service provider: An analytic network process (ANP) approach, International Journal of Management Science, 35 (2007), 274-289.

[24]

R. Johnston, Service operations management: Return to roots, International Journal of Operations and Production Management, 19 (1999), 104-124. doi: 10.1108/01443579910247383.

[25]

H. Y. Kang and A. H. I. Lee, Priority mix planning for semiconductor fabrication by fuzzy AHP ranking, Expert Systems with Applications, 32 (2007), 560-570.

[26]

A. Kaufmann and M. M. Gupta, "Introduction to Fuzzy Arithmetic," Theory and Applications, Van Nostrand Reinhold Co., New York, 1991.

[27]

M. Kumar, P. Vart and P. Shankar, A fuzzy goal programming approach for supplier selection problem in a supply chain, Computer and Industrial Engineering, 46 (2004), 69-85.

[28]

S. Lai, G. Mayer-Kress, J. J. Sosnoff and K. M. Newell, Information entropy analysis of discrete aiming movements, Acta Psychological, 119 (2005), 283-304.

[29]

H. Lee and C. Billington, The evolution of supply-chain management models and practice at Hewlett-Packard, Interfaces, 25 (1995), 42-63.

[30]

D. Li, Linear programming method for MADM with interval-valued intuitionist fuzzy sets, Expert Systems with Applications, 37 (2010), 5939-5945. doi: 10.1016/j.eswa.2010.02.011.

[31]

A. Ojha, B. Das, S. Mondal and M. Maiti, A stochastic discounted multi-objective solid transportation problem for breakable items using analytical hierarchy process, Applied Mathematical Modeling, 34 (2010), 2256-2271.

[32]

L. Peng, Z. Tong and Q. Li, "An Analysis of the Third Party Payment System Based on Service Supply Chain," IEEE IRI 2009, Las Vegas, Nevada, USA, 2009.

[33]

P. J. M. van Laarhoven and W. Pedrycz, A fuzzy extension of Saaty's priority theory, Fuzzy Sets and Systems, 11 (1983), 229-241.

[34]

H. Rommelfanger, Interactive decision making in fuzzy linear optimization problems, European Journal of Operational Research, 41 (1989), 210-217. doi: 10.1016/0377-2217(89)90386-X.

[35]

E. C. Rosenthal and J. L. Zydiac, Vendor selection with bundling, Decision Sciences, 26 (1995), 35-48. doi: 10.1111/j.1540-5915.1995.tb00836.x.

[36]

A. V. Roth and L. J. Menor, Insights into service operations management: A research agenda, Production and Operations Management, 12 (2003), 145-164. doi: 10.1111/j.1937-5956.2003.tb00498.x.

[37]

T. L. Saaty, A scaling method for priorities in hierarchical structures, Journal of Mathematical Psychology, 42 (1977), 241-266.

[38]

T. L. Saaty, Response to holder's comments on the Analytic Hierarchy Process, Journal of the Operational Research Society, 42 (1991), 909-914.

[39]

T. L. Saaty, "Multi-Criteria Decision Making: The Analytic Hierarchy Process," 2nd edition, RSW Pub. Pittsburgh, New York, 1990.

[40]

M. Saleh, Estimating market shares in each market segment using the information entropy concept, Applied Mathematics and Computation, 190 (2007), 1735-1739.

[41]

C. E. Shannon, A Mathematical Theory of Communication, The Bell System Technical Journal, 27 (1948), 379-423, 623-656.

[42]

N. Slack, M. Lewis and H. Bates, The two worlds of operations research and practice: Can They meet, should they meet?, International Journal of Operations and Production Management, 24 (2004), 374-387.

[43]

J. Spohrer, L. C. Anderson, N. J. Pass, T. Ager and D. Gruhl, Service science, Journal of Grid Computing, 6 (2008), 313-324. doi: 10.1007/s10723-007-9096-2.

[44]

G. Wang, S. H. Hang and J. P. Dismukes, Product-driven supply chain selection using integrated multi-criteria decision making methodology, International Journal of Production Economics, 91 (2004), 1-15.

[45]

T. C. Wang and Y. H. Chen, Applying fuzzy linguistic preference relations to the improvement of consistency of fuzzy AHP, Fuzzy Sets and Systems, 178 (2008), 3755-3765.

[46]

C. A. Weber and J. R. Current, A multi-objective approach to provider selection, European Journal of Operational Research, 68 (2003), 173-184. doi: 10.1016/0377-2217(93)90301-3.

[47]

G. Vaidyanathan, A framework for evaluating third-party logistics, Communications of the ACM, 48 (2005), 89-94. doi: 10.1145/1039539.1039544.

[48]

S. L. Vargo and R. F. Lusch, The four service marketing myths: Remnants of a goods-based, manufacturing model, Journal of Service Research, 6 (2004), 324-335.

[49]

L. Vidal, E. Sahin, N. Martelli, M. Berhoune and B. Bonan, Applying AHP to select drugs to be produced by anticipation in a chemotherapy compounding unit,, Expert System with Application, (). 

show all references

References:
[1]

G. Allon and A. Federgruen, Competition in service industries with segmented markets, Management Science, 55 (2003), 619-634. doi: 10.1287/mnsc.1080.0946.

[2]

S. H. Amin, J. Razmi and G. Zhang, Supplier selection and order allocation based on fuzzy SWOT analysis and fuzzy linear programming,, Expert Systems with Applications, (). 

[3]

E. G. Anderson and D. J. Morrice, A simulation game for service-oriented supply chain management, Production and Operations Management, (2000), 40-45.

[4]

L. Berry, V. Shankar and J. Parish, Creating new markets through service innovation, MIT Sloan Management Review, 47 (2006), 56-63.

[5]

N. Bhuiyan, E. Shuiabi and V. Thomson, Entropy as a measure of operational flexibility, European Journal of Operational Research, 165 (2005), 696-707.

[6]

O. Cakir, On the order of the preference intensities in fuzzy AHP, Computers and Industrial Engineering, 54 (2008), 993-1005. doi: 10.1016/j.cie.2007.11.010.

[7]

X. Chao, L. Liu and S. Zheng, Resource allocation in multisite service systems with interstice customer flows, Management Science, 49 (2003), 1739-1752.

[8]

R. B. Chase, The mall is my factory: Lessons from a service junkie, Production and Operation Management, 5 (1996), 298-308. doi: 10.1111/j.1937-5956.1996.tb00402.x.

[9]

S. S. Chauhdry, F. G. Forst and J. L. Zydiak, Vendor selection with price breaks, European Journal of Operational Research, 70 (1993), 52-66. doi: 10.1016/0377-2217(93)90232-C.

[10]

I. J. Chen and A. Paulraj, Understanding supply chain management: Critical research and a theoretical framework, International Journal of Production Research, 42 (2004), 131-163.

[11]

L. H. Chen and H. W. Lu, An approximate approach for ranking fuzzy numbers based on left and right dominance, An International Journal of Computers and Mathematics with Applications, 41 (2001), 1589-1602.

[12]

C. H. Cheng, Evaluating naval tactical missile systems by fuzzy AHP based on the grade value of membership function, European Journal of Operational Research, 96 (1996), 343-350.

[13]

S. J. Cook, Kathy DeBree and Amie Feroleto, From raw materials to customers: Supply chain management in the service industry, SAM Advanced Management Journal, 66 (2002), 14-19.

[14]

K. L. Croxton, S. J. Garcia-Dastugue, D. M. Lambert and D. L. Rogers, The supply chain management process, International Journal of Logistics Management, 12 (2001), 13-36.

[15]

Z. Dagraeve and F. Roodhooft, A mathematical programming approach for procurement using activity based costing, Journal of Business Finance and Accounting, 27 (2000), 69-98.

[16]

H. Dernirkan and H. K. Cheng, The risk and information sharing of application services supply chain, European Journal of Operational Research, 187 (2008), 765-784.

[17]

D. de Waart and S. Kemper, 5 steps to service supply chain excellence, Supply Chain Management Review, 8 (2004), 28-35.

[18]

L. M. Ellram, W. L. Tate and C. Billington, Understanding and managing the service supply chain, Journal of Supply Chain Management, (2004), 17-32.

[19]

J. R. Figueira, A. Liefooghe, E. G. Talbi and A. P. Wierzbicki, A parallel multiple reference point approach for multi-objective optimization, European Journal of Operational Research, 205 (2010), 390-400.

[20]

G. Friezlle and J. Efstathiou, "Seminar Notes on 'Measuring Complex Systems,'" London School of Economics, 2002.

[21]

G. Galante, G. Aiello, M. Enea and E. Panascia, A parallel multiple reference point approach for multi-objective optimization, Waste Management, 30 (2010), 1720-1728.

[22]

M. X. He and P. E. Ricci, Information entropy of orthogonal polynomials, Orthogonal Systems and Applications, Applied Mathematics and Computation, 128 (2002), 261-274. doi: 10.1016/S0096-3003(01)00075-3.

[23]

S. Jharkharia and R. Shank, Selection of logistics service provider: An analytic network process (ANP) approach, International Journal of Management Science, 35 (2007), 274-289.

[24]

R. Johnston, Service operations management: Return to roots, International Journal of Operations and Production Management, 19 (1999), 104-124. doi: 10.1108/01443579910247383.

[25]

H. Y. Kang and A. H. I. Lee, Priority mix planning for semiconductor fabrication by fuzzy AHP ranking, Expert Systems with Applications, 32 (2007), 560-570.

[26]

A. Kaufmann and M. M. Gupta, "Introduction to Fuzzy Arithmetic," Theory and Applications, Van Nostrand Reinhold Co., New York, 1991.

[27]

M. Kumar, P. Vart and P. Shankar, A fuzzy goal programming approach for supplier selection problem in a supply chain, Computer and Industrial Engineering, 46 (2004), 69-85.

[28]

S. Lai, G. Mayer-Kress, J. J. Sosnoff and K. M. Newell, Information entropy analysis of discrete aiming movements, Acta Psychological, 119 (2005), 283-304.

[29]

H. Lee and C. Billington, The evolution of supply-chain management models and practice at Hewlett-Packard, Interfaces, 25 (1995), 42-63.

[30]

D. Li, Linear programming method for MADM with interval-valued intuitionist fuzzy sets, Expert Systems with Applications, 37 (2010), 5939-5945. doi: 10.1016/j.eswa.2010.02.011.

[31]

A. Ojha, B. Das, S. Mondal and M. Maiti, A stochastic discounted multi-objective solid transportation problem for breakable items using analytical hierarchy process, Applied Mathematical Modeling, 34 (2010), 2256-2271.

[32]

L. Peng, Z. Tong and Q. Li, "An Analysis of the Third Party Payment System Based on Service Supply Chain," IEEE IRI 2009, Las Vegas, Nevada, USA, 2009.

[33]

P. J. M. van Laarhoven and W. Pedrycz, A fuzzy extension of Saaty's priority theory, Fuzzy Sets and Systems, 11 (1983), 229-241.

[34]

H. Rommelfanger, Interactive decision making in fuzzy linear optimization problems, European Journal of Operational Research, 41 (1989), 210-217. doi: 10.1016/0377-2217(89)90386-X.

[35]

E. C. Rosenthal and J. L. Zydiac, Vendor selection with bundling, Decision Sciences, 26 (1995), 35-48. doi: 10.1111/j.1540-5915.1995.tb00836.x.

[36]

A. V. Roth and L. J. Menor, Insights into service operations management: A research agenda, Production and Operations Management, 12 (2003), 145-164. doi: 10.1111/j.1937-5956.2003.tb00498.x.

[37]

T. L. Saaty, A scaling method for priorities in hierarchical structures, Journal of Mathematical Psychology, 42 (1977), 241-266.

[38]

T. L. Saaty, Response to holder's comments on the Analytic Hierarchy Process, Journal of the Operational Research Society, 42 (1991), 909-914.

[39]

T. L. Saaty, "Multi-Criteria Decision Making: The Analytic Hierarchy Process," 2nd edition, RSW Pub. Pittsburgh, New York, 1990.

[40]

M. Saleh, Estimating market shares in each market segment using the information entropy concept, Applied Mathematics and Computation, 190 (2007), 1735-1739.

[41]

C. E. Shannon, A Mathematical Theory of Communication, The Bell System Technical Journal, 27 (1948), 379-423, 623-656.

[42]

N. Slack, M. Lewis and H. Bates, The two worlds of operations research and practice: Can They meet, should they meet?, International Journal of Operations and Production Management, 24 (2004), 374-387.

[43]

J. Spohrer, L. C. Anderson, N. J. Pass, T. Ager and D. Gruhl, Service science, Journal of Grid Computing, 6 (2008), 313-324. doi: 10.1007/s10723-007-9096-2.

[44]

G. Wang, S. H. Hang and J. P. Dismukes, Product-driven supply chain selection using integrated multi-criteria decision making methodology, International Journal of Production Economics, 91 (2004), 1-15.

[45]

T. C. Wang and Y. H. Chen, Applying fuzzy linguistic preference relations to the improvement of consistency of fuzzy AHP, Fuzzy Sets and Systems, 178 (2008), 3755-3765.

[46]

C. A. Weber and J. R. Current, A multi-objective approach to provider selection, European Journal of Operational Research, 68 (2003), 173-184. doi: 10.1016/0377-2217(93)90301-3.

[47]

G. Vaidyanathan, A framework for evaluating third-party logistics, Communications of the ACM, 48 (2005), 89-94. doi: 10.1145/1039539.1039544.

[48]

S. L. Vargo and R. F. Lusch, The four service marketing myths: Remnants of a goods-based, manufacturing model, Journal of Service Research, 6 (2004), 324-335.

[49]

L. Vidal, E. Sahin, N. Martelli, M. Berhoune and B. Bonan, Applying AHP to select drugs to be produced by anticipation in a chemotherapy compounding unit,, Expert System with Application, (). 

[1]

Jing Shi, Tiaojun Xiao. Service investment and consumer returns policy in a vendor-managed inventory supply chain. Journal of Industrial and Management Optimization, 2015, 11 (2) : 439-459. doi: 10.3934/jimo.2015.11.439

[2]

Suresh P. Sethi, Houmin Yan, Hanqin Zhang, Jing Zhou. Information Updated Supply Chain with Service-Level Constraints. Journal of Industrial and Management Optimization, 2005, 1 (4) : 513-531. doi: 10.3934/jimo.2005.1.513

[3]

Tinghai Ren, Kaifu Yuan, Dafei Wang, Nengmin Zeng. Effect of service quality on software sales and coordination mechanism in IT service supply chain. Journal of Industrial and Management Optimization, 2021  doi: 10.3934/jimo.2021165

[4]

Xiaohui Ren, Daofang Chang, Jin Shen. Optimization of the product service supply chain under the influence of presale services. Journal of Industrial and Management Optimization, 2021  doi: 10.3934/jimo.2021130

[5]

Qiang Lin, Ying Peng, Ying Hu. Supplier financing service decisions for a capital-constrained supply chain: Trade credit vs. combined credit financing. Journal of Industrial and Management Optimization, 2020, 16 (4) : 1731-1752. doi: 10.3934/jimo.2019026

[6]

Bin Dan, Huali Gao, Yang Zhang, Ru Liu, Songxuan Ma. Integrated order acceptance and scheduling decision making in product service supply chain with hard time windows constraints. Journal of Industrial and Management Optimization, 2018, 14 (1) : 165-182. doi: 10.3934/jimo.2017041

[7]

Dingzhong Feng, Xiaofeng Zhang, Ye Zhang. Collection decisions and coordination in a closed-loop supply chain under recovery price and service competition. Journal of Industrial and Management Optimization, 2021  doi: 10.3934/jimo.2021117

[8]

Weihua Liu, Xinran Shen, Di Wang, Jingkun Wang. Order allocation model in logistics service supply chain with demand updating and inequity aversion: A perspective of two option contracts comparison. Journal of Industrial and Management Optimization, 2021, 17 (6) : 3269-3295. doi: 10.3934/jimo.2020118

[9]

Zonghong Cao, Jie Min. Selection and impact of decision mode of encroachment and retail service in a dual-channel supply chain. Journal of Industrial and Management Optimization, 2022, 18 (1) : 541-560. doi: 10.3934/jimo.2020167

[10]

Han Zhao, Bangdong Sun, Hui Wang, Shiji Song, Yuli Zhang, Liejun Wang. Optimization and coordination in a service-constrained supply chain with the bidirectional option contract under conditional value-at-risk. Discrete and Continuous Dynamical Systems - S, 2022  doi: 10.3934/dcdss.2022021

[11]

Jun Tu, Zijiao Sun, Min Huang. Supply chain coordination considering e-tailer's promotion effort and logistics provider's service effort. Journal of Industrial and Management Optimization, 2022, 18 (3) : 2191-2220. doi: 10.3934/jimo.2021062

[12]

Jun Wu, Shouyang Wang, Wuyi Yue. Supply contract model with service level constraint. Journal of Industrial and Management Optimization, 2005, 1 (3) : 275-287. doi: 10.3934/jimo.2005.1.275

[13]

Wendai Lv, Siping Ji. Atmospheric environmental quality assessment method based on analytic hierarchy process. Discrete and Continuous Dynamical Systems - S, 2019, 12 (4&5) : 941-955. doi: 10.3934/dcdss.2019063

[14]

Pikkala Vijaya Laxmi, Obsie Mussa Yesuf. Analysis of a finite buffer general input queue with Markovian service process and accessible and non-accessible batch service. Journal of Industrial and Management Optimization, 2010, 6 (4) : 929-944. doi: 10.3934/jimo.2010.6.929

[15]

Tinghai Ren, Nengmin Zeng, Dafei Wang, Shuwei Cheng. Effects of channel encroachment on the software and service decisions in it supply chains. Journal of Industrial and Management Optimization, 2021  doi: 10.3934/jimo.2021136

[16]

Tao Jiang, Liwei Liu. Analysis of a batch service multi-server polling system with dynamic service control. Journal of Industrial and Management Optimization, 2018, 14 (2) : 743-757. doi: 10.3934/jimo.2017073

[17]

Juliang Zhang, Jian Chen. Information sharing in a make-to-stock supply chain. Journal of Industrial and Management Optimization, 2014, 10 (4) : 1169-1189. doi: 10.3934/jimo.2014.10.1169

[18]

Feimin Zhong, Wei Zeng, Zhongbao Zhou. Mechanism design in a supply chain with ambiguity in private information. Journal of Industrial and Management Optimization, 2020, 16 (1) : 261-287. doi: 10.3934/jimo.2018151

[19]

Honglin Yang, Jiawu Peng. Coordinating a supply chain with demand information updating. Journal of Industrial and Management Optimization, 2022, 18 (2) : 843-872. doi: 10.3934/jimo.2020181

[20]

Azam Modares, Nasser Motahari Farimani, Vahideh Bafandegan Emroozi. A vendor-managed inventory model based on optimal retailers selection and reliability of supply chain. Journal of Industrial and Management Optimization, 2022  doi: 10.3934/jimo.2022078

2020 Impact Factor: 1.801

Metrics

  • PDF downloads (222)
  • HTML views (0)
  • Cited by (1)

Other articles
by authors

[Back to Top]