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Risk Analysis for Supplier Selection Problem using Failure Mode and Effects Analysis (FMEA)


Risk Analysis for Supplier Selection Problem using Failure Mode and Effects Analysis (FMEA)

Zeng, Wei (2013) Risk Analysis for Supplier Selection Problem using Failure Mode and Effects Analysis (FMEA). Masters thesis, Concordia University.

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With the onset of globalization, the proper selection of suppliers is more critical and important than before. An enterprise can generally select the suppliers by setting up the criteria based on pricing, quality, reliability, and knowledge of industry trends. At the same time, the impact of unexpected and unpredicted risks involved in the suppliers’ performance such as cost increase, delivery delay and poor quality cannot be ignored. The purpose of this thesis is to develop a quantitative approach to support decision makers to evaluate and select the best supplier under the risky environment.
To gain the knowledge of risk analysis, supplier selection, Multi Criteria Decision Making (MCDM) and Failure Mode and Effects Analysis (FMEA), a systematical and comprehensive literature research was conducted. Moreover, interviews with purchasing managers were performed at a major chemical product manufacture.
In this work, an FMEA risk analysis methodology was proposed, and it was used to cope with a real case of supplier selection. FMEA evaluation schemes were created for calculating “discounts” for the criteria scores according to the seriousness of the risk situations. The result not only ranking suppliers by risk-discounted scores, but also can inform decision makers that where risks come from, how serious they are and the possibility of detecting and controlling the risks.
This practice indicates that it can be applied to support decision makers consider more issues than just choose the “best” supplier by using numerical tool, which opens important future research directions.

Divisions:Concordia University > John Molson School of Business > Decision Sciences and Management Information Systems
Item Type:Thesis (Masters)
Authors:Zeng, Wei
Institution:Concordia University
Degree Name:M.A. Sc.
Program:Quality Systems Engineering
Date:24 August 2013
Thesis Supervisor(s):Li, Simon
Keywords:Supplier selection, Multi Criteria Decision Making (MCDM), risk analysis, Failure Mode and Effects Analysis (FMEA), Risk Priority Number (RPN)
ID Code:977944
Deposited By: WEI ZENG
Deposited On:16 Jun 2017 15:37
Last Modified:18 Jan 2018 17:45


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