A Decision-Making Model for Evaluating and Selecting Suppliers for the Sustainable Operation and Development of Enterprises in the Aerospace Industry

Chin-Tsai Lin, Kuang-Peng Hung and Shu-Hsien Hu
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Chin-Tsai Lin: Department of Business Administration, Ming Chuan University, 250 Zhong Shan N. Rd., Sec. 5, Taipei 111, Taiwan
Kuang-Peng Hung: Department of Business Administration, Ming Chuan University, 250 Zhong Shan N. Rd., Sec. 5, Taipei 111, Taiwan
Shu-Hsien Hu: Department of Business Administration, Ming Chuan University, 250 Zhong Shan N. Rd., Sec. 5, Taipei 111, Taiwan

Sustainability, 2018, vol. 10, issue 3, 1-21

Abstract: Due to rigorous quality requirements and high unit prices, the manufacture of machines used in the aerospace industry is characterized by a high entry threshold, high risk and a long payback period. A good decision-making model for evaluating and selecting suppliers is vital for sustainable enterprise development. Therefore, this study presents a new two-stage model for evaluating and selecting suppliers in the aerospace industry. In the first stage, a hierarchical structure is built with five main and 16 sub-criteria for supplier evaluation and selection following the modified Delphi method; in the second stage, the best alternative solution is selected following the analytic network process (ANP) method. Finally, this study verifies the feasibility of the above model based on the purchase of high-precision and high-cost 3D measuring tools by Aerowin Technology Corporation, which is listed on the Taiwan Stock Exchange. The results show that the five criteria in the above model are ranked by their degree of importance, as follows: quality > cost > delivery > marketing > organizational planning. The findings of this research can be used as a reference for decision-making during the purchase of high-precision and high-priced machine tools in the aerospace industry.

Keywords: aerospace industry; sustainable enterprise operation; supplier evaluation; supplier selection; modified Delphi method; analytic network process (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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