PROCUREMENT OPTIMIZATION BY SELECTING EFFICIENT SUPPLIERS USING DEA-FUCOM-COCOSO APPROACH AND SOLVING ORDER ALLOCATION PROBLEM

Vukašin Pajić, Milan Andrejić, Milorad Kilibarda

DOI Number
10.22190/FUME220210031P
First page
Last page

Abstract


Procurement logistics is one of the most important segments of the supply chain and one of the key factors of a company’s competitiveness. For that reason, many companies strive for constant optimization of this segment of the supply chain, both in terms of costs and in terms of time, reliability, etc. The aim of this paper is to develop a new approach based on DEA-FUCOM-CoCoSo methods that aim to select efficient suppliers. The developed model was tested on the data of one trading company. The DEA method was used in order to select only efficient ones from 29 observed in this paper. The FUCOM method was used to determine the weights of the 9 observed criteria used in the CoCoSo method for evaluation of 6 efficient suppliers. The results of the application of this method determined the final rank of suppliers, after which only the first 3 suppliers were considered. At the very end, a model for solving the problem of order allocation is defined in order to determine from which supplier it is necessary to order goods and in what quantity. By applying the defined model, the quantities that need to be ordered from certain suppliers in order to meet the demand on the market are obtained. Based on the results, the developed approach showed the possibility of large application not only on the observed example but also on a larger problem.

Keywords

Procurement logistics, Supplier selection, Order allocation problem, FUCOM, CoCoSo

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References


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