Using SIMULINK® to model and simulate supplier evaluation and selection problem
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(Published version)
Date
2013
Authors
Abu Ajamieh, A.M.
Luong, L.H.S.
Marian, R.M.
Editors
Piantadosi, J.
Anderssen, R.S.
Boland, J.
Anderssen, R.S.
Boland, J.
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Conference paper
Citation
MODSIM2013, 20th International Congress on Modelling and Simulation, 2013 / Piantadosi, J., Anderssen, R.S., Boland, J. (ed./s), pp.1-7
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20th International Congress on Modelling and Simulation (1 Dec 2013 - 6 Dec 2013 : Adelaide)
Abstract
This paper presents a new conceptual model for supplier evaluation and selection decision support system using simulation. The model is based on the concept of Supplier Product-Profile Equivalent Cost (SPPEC) introduced previously by the authors. This paper intends to develop the previous model using simulation to generate a large number of suppliers' profiles that will enable a better and more accurate decision of best supplier based on a range of performance indicators.
Another important advantage of this model comes from the wide range of potential applications; as it is very easy to utilise the concept in modelling and solving any multi-alternative decision problem. In further work, using Neural Network (NN) as a powerful learning tool may allow improving the existing model to learn from previous knowledge and potentially to utilise it in knowledge modelling and acquisition.
In addition to its simplicity, the interpretation of the results is straightforward. The use of equivalent cost to select the best supplier makes it more practical and easier to understand by any person in any industry.
It is also important to state that the model is a very flexible one. It can be tailored to suit any industry and to deal with any type of data. This may reduce the need to establish complicated and expensive data collection systems.
Simulation is used to generate multiple values of the suppliers' performances summarised as an Actual Supplier-Product Profile (ASPP). In the process, each supplier has a range of different types of selection criteria (decision variables) that will change representing the supplier performance variations according to the process/product characteristics hence generating different numbers of scenarios of supplier-product performances which will then be converted into an equivalent cost named Supplier Product Profile Equivalent Cost (SPPEC) simplifying the task for the decision maker by selecting the supplier that generates the minimum cost; a simple, yet very powerful tool to use.
The decision model can accommodate any number of criteria, any number of potential suppliers and any type of input data (qualitative or quantitative).
This methodology will produce a more realistic decision and will increase the confidence level in the decision making process. The basic simulation model is explained using an illustrative case where MATLAB® & SIMULINK® were used to build and simulate the model because of their strong computational capabilities and the availability of a wide range of tool boxes that can be easily and seamlessly integrated in the model.
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Copyright 2013 The Modelling and Simulation Society of Australia and New Zealand