A customer based supplier selection process that combines quality function deployment, the analytic network process and a Markov chain

Abstract

The overall objective of this paper is to introduce a customer oriented supplier selection method. Although the supplier selection problem has previously been investigated, an effective solution to consider the dynamics of Customer Needs (CNs) in finding the best supplier has not yet been proposed. Such a method takes into account customer needs as a determinant factor in finding the best supplier and considers possible changes in the priorities of customer needs as time passes. In this study a method integrating the analytic network process (ANP), quality function deployment (QFD), and a Markov chain is used to address the supplier selection problem. This proposed method utilizes a Markov chain to trace the changing-priorities of customer needs and find a pattern for them. The ANP–QFD method then connects this pattern to product requirements (PRs) and PRs to supplier qualifications. This combination develops a customer based supplier selection method. The best supplier is selected based on the changing-priorities of customer needs. Although the customer needs priorities keep changing, one supplier is selected as the best one. This study introduces an innovative customer based approach to select the best supplier that is independent of initial CNs.