International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

 

Using Integrated FMEA-DEA Approach to Classify Purchasing Items Based on Kraljic’s Model
S. Mohammad Arabzad, Mazaher Ghorbani

Abstract
Effective purchasing management has played an important role in the success of supply chain management. For organizations that maintain thousands of purchasing items, it is unrealistic to provide equal consideration to each item. Managers are required to classify these items in order to appropriately control each class according to its importance rating. In this paper, failure mode and effect analysis (FMEA) and Data envelopment analysis (DEA) techniques are used to classify purchasing items. In the first phase, weights of evaluation criteria are determined by FMEA techniques with fuzzy RPN numbers. Then, considering supply risk and profit impact based on Kraljic’s model, purchasing items are classified using DEA technique. Finally, in order to show the application aspects, a numerical example has been conducted by using the proposed approach.

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