Birsen Karpak

Purchasing materials in the supply chain: managing a multi-objective task

Abstract Purchasing materials that has long been recognized as a multi-objective problem gained in importance in the present “Lean Supply” management environment. The authors discuss one of the “user-friendly” alternative multiple criteria decision support systems—visual interactive goal programming (VIG). The personal computer-based technique is applied to an original equipment manufacturers multiple-replenishment purchasing problem and assists in selecting suppliers and allocating orders among them. The authors conclude with the benefits of VIG and contributions of the analysts.

Selection of a third party logistics service provider for an aerospace company: an analytical decision aiding approach

As shippers worldwide are increasing their use of third party logistics (3PL) services, the need for carefully selecting 3PL service providers is becoming much more critical. Choosing the right 3PL service provider is often a dilemma faced by supply chain managers. Our purpose is to show how the analytic hierarchy process (AHP) can be used in aiding companies with the decision of selecting the most capable 3PL service provider for an aerospace company. The methodology we propose enables practitioners to systematically evaluate the trade-offs among multiple factors and therefore helps them in making more informed decisions when evaluating outsourcing logistics services.

Contracting Cone Method vs Modified Two Person-Zero Sum Game Approach an Implementation in Production Planning

There are quite a few Interactive Multiobjective Linear Programming Methods. Most of the comparisons cited in the Literature are on randomly generated medium sized problems. Feedback on implementations of these methods in actual large scale problems with real decision makers would be of considerable value.

Multiple Criteria Vendor Selection: A Case Study

In this article, vendor selection in the hydraulic pump gear division of a manufacturing company is explained. Division wants to find appropriate vendors and amount to buy from them while minimizing cost and maximizing quality and delivery reliability. Visual Interactive Goal Programming (VIG) is used as a decision support system. Interaction with decision makers during model building and solution process is discussed.

Multiple Criteria Decision Support Systems in Production Planning: A Micro Experience

The implementation of the modified two person zero-sum game approach, contracting cone method and augmented Tchebycheff method on a production planning problem in a manufacturing organization is explained. Karpak, Kuruuzum (1987) compared the modified two person zero-sum game approach with the contracting cone method on a mainframe. In this study we describe our experience on a microcomputer.

AHP as an Early Warning System: An Application in Commercial Banks in Turkey

Banking sector performance is important at the stage of economic growth. During the past two decades, many of developed and developing countries in the world experienced bank failures on a large scale. The Analytic Hierarchy Process (AHP) is a multiple criteria decision-making methodology designed to help decision makers in prioritizing decisions that involves both tangible and intangible criteria and has been implemented extensively all over the world. The paper employs the AHP to evaluate the performance of commercial banks in Turkey during the period 1997–1999. The main starting point for this study is to evaluate the performance of the banks in Turkey. Turkish banking industry’s financial ratios are placed in a hierarchical decision structure to calculate financial performance score for the commercial banks in Turkey. We used AHP as a systematic methodology of acquiring knowledge from experts through group decision-making. Forty-eight banks are prioritized based on 26 financial criteria using AHP. We, however, observed that failed banks ranked in lower rows. In other words, based on this analysis the decision-makers can also predict the likelihood of a banking failure. Sensitivity analysis was performed using Expert Choice. Ranking was sensitive to capital, liquidity and shares-in-sector ratios. In other words, small change in the importance of these criteria caused rank reversal of certain banks. In this paper, the banking performance score was constructed by using publicly open financial data. This framework can be used as an Early Warning System (EWS) to detect the banks that would experience serious problems and can help the decision makers to select the banks to invest in. Capability to test solution’s robustness is another superiority of the methodology since real life problems are dynamic in nature.

Multiple Criteria Decision Support Systems on Microcomputers an Application in Production Planning

In this paper we compare four interactive multiple criteria decision support systems on a microcomputer. VIG (Visual Interactive Goal programming) recently developed by Korhonen(1987) is an interactive decision support system providing nondominated solutions to the decision maker. The other three interactive methods considered are contracting cone method (CCM) and interactive Tchebycheff method (ITM) both developed by Steuer, and modified Belenson — Kapur method, which was originally developed by Belenson — Kapur (1973) and modified by the author (Karpak, 1978) to fit the cases where there are alternative solutions. All four of them are applied to a production planning problem in a manufacturing company.