Suppliers Selection for Sazeh Gostar Saipa Co. Using a Combination Approach of Analytic Network Process and Goal Programming

Abstract

Strategic evaluation and supplier selection, or strategic supply, is a main subject of supply chain management. Strategic evaluation and supplier selection is a multi-criteria decision problem, considering both tangible and intangible criteria and organizations are seeking various and sometimes opposite objectives in purchasing from suppliers. As the increasing rivalry in Iran’s auto industry, producers and suppliers face several challenges. Sazeh Gostar Saipa Co., the main supplier of Saipa automobile maker firm, is not exempt of this norm. Top managers of the company believe that the best supplier selection for long-term cooperation is vital for the implementation of corporate strategies. In this paper, using decision technique of Analytic Network Process (ANP) and Base Overhead Cost Recovery (BOCR), 20 tangible and intangible operational and strategic criteria are considered in the supplier selection decision through a suggested methodology. Different organizations’ goals in purchasing from suppliers that are ranked in the previous stage are formulated to determine the amount of supply allocation to each supplier based on goals. The innovation aspect and main goal of the research are suggesting a methodology for selecting suppliers and determining the amount of allocated orders to them with combining ANP method, BOCR structure and goal programming in Sazeh Gostar Saipa Co.