Evaluating Suppliers Efficiency using Conjoint Analysis

Z. Iqbal, H. M.K. Ali, A. Wasim, S. Hussain, M. Jahanzaib


One of the main challenges for leading manufacturing industries to retain their competitiveness is selection of appropriate suppliers. In developing countries like Pakistan, industries need reinforcement of the supplier selection decisions using scientific techniques. This study utilizes conjoint analysis (CA), a mathematical and statistical modeling based multi-criteria decision making (MCDM) methodology, for evaluation of supplier efficiency in a real world manufacturing organization. Six attributes are extracted from respective literature with the help of expert opinions. The developed mathematical models are solved in respective CA software by using actual data. Results reveal that product performance is the most important attribute in supplier evaluation for the concerned industry followed by costs, quality, financial stability, delivery time and technical ability respectively. The findings are beneficial for both the selected manufacturing industry and the market suppliers.

Full Text:



S. M. Ordoobadi, "Development of a supplier selection model using fuzzy logic", Supply Chain Management: An International Journal, vol. 14, pp. 314-327, 2009.

P. E. Green and V. Srinivasan, "Conjoint analysis in consumer research: issues and outlook", J. Consumer Research, vol. 5, pp. 103-123, 1978.

S. De Pelsmaeker, K. Dewettinck, and X. Gellynck, "The possibility of using tasting as a presentation method for sensory stimuli in conjoint analysis", Trends in Food Science & Technology, vol. 29, pp. 108-115, 2013.

G. W. Dickson, "An analysis of vendor selection systems and decisions", J. Purchasing, vol. 2, pp. 5-17, 1966.

C. A. Weber, J. R. Current, and W. Benton, "Vendor selection criteria and methods", Eur. J. Operational Research, vol. 50, pp. 2-18, 1991.

M. I. Ramay, S. Hussain, A. Tanveer, Z. Jabeen and S. Ehsann, Industrial waste management-a case study at Attock Oil Refinery Ltd., Rawalpindi, The Nucleus, vol. 46, no. 3, pp. 279-288, 2009.

E. Constantinides, "Influencing the online consumer's behavior: the Web experience," Internet Research, vol. 14, pp. 111-126, 2004.

S. Talluri, R. Narasimhan, and A. Nair, "Vendor performance with supply risk: a chance-constrained DEA approach," Int. J. Production Economics, vol. 100, pp. 212-222, 2006.

A. Ancarani, "Supplier evaluation in local public services: Application of a model of value for customer", J. Purchasing and Supply Management, vol. 15, pp. 33-42, 2009.

O. Gurel, A. Z. Acar, I. Onden, and I. Gumus, "Determinants of the green supplier selection", Procedia-Social and Behavioral Sciences, vol. 181, pp. 131-139, 2015.

T. Reutterer and H. W. Kotzab, "The use of conjoint-analysis for measuring preferences in supply chain design", Ind. Market. Manage., vol. 29, pp. 27-35, 2000.

S. Alriksson and T. berg, "Conjoint analysis for environmental evaluation", Environ. Sci. and Pollution Res., vol. 15, pp. 244-257, 2008.

P. E. Green, A. M. Krieger, and Y. Wind, "Thirty years of conjoint analysis: Reflections and prospects", Interfaces, vol. 31, pp. S56-S73, 2001.

B. Keith and M. C. Simon, "Hypoxia-inducible factors, stem cells, and cancer", Cell, vol. 129, pp. 465-472, 2007.

R. Myung, "Conjoint analysis as a new methodology for Korean typography guideline in Web environment", Int. J. Ind. Ergonomics, vol. 32, pp. 341-348, 2003.

S. H. Ha and R. Krishnan, A hybrid approach to supplier selection for the maintenance of a competitive supply chain. Expert Systems with Applications, vol. 34, no. 2, pp. 1303-1311, 2008.

K. Govindan, R. Khodaverdi and A. Jafarian, A fuzzy multi criteria approach for measuring sustainability performance of a supplier based on triple bottom line approach, Journal of Cleaner Production, vol. 47, pp. 345-354, 2013.

G. Bykzkan, G. ifi, and S. Gleryz, Strategic analysis of healthcare service quality using fuzzy AHP methodology, Expert systems with applications, vol. 38, no.8, pp. 9407-9424, 201.

X. Lin and S. Purchase, "Supplier selection in China: A conjoint analysis", Proc. of the Australian and New Zealand Marketing Academy (ANZMAC) Conference, University of Western Australia, Perth, Austrlia, pp. 49-56, 2005.

J. Rezaei, P. B. Fahim, and L. Tavasszy, "Supplier selection in the airline retail industry using a funnel methodology: Conjunctive screening method and fuzzy AHP", Expert Systems with Applications, vol. 41, pp. 8165-8179, 2014.

K. Shaw, R. Shankar, S. S. Yadav and L. S. Thakur, Supplier selection using fuzzy AHP and fuzzy multi-objective linear programming for developing low carbon supply chain, Expert systems with applications, vol. 39, no. 9, pp. 8182-8192, 2012.

D.R. Lehmann and J. O'shaughnessy, Difference in attribute importance for different industrial products. The Journal of Marketing, vol. 38, no. 2, pp. 36-42, 1974

G. Bykzkan, and G. ifi, A novel hybrid MCDM approach based on fuzzy DEMATEL, fuzzy ANP and fuzzy TOPSIS to evaluate green suppliers, Expert Systems with Applications, vol. 39. no. 3, pp. 3000-3011, 2012.

A. Aksoy and N. ztrk, Supplier selection and performance evaluation in just-in-time production environments, Expert systems with applications, vol. 38, no. 5, pp. 6351-6359, 2011.

A. YCel and A. F. GNeri, A weighted additive fuzzy programming approach for multi-criteria supplier selection, Expert Systems with Applications, vol. 38, no. 5, pp. 6281-6286, 2011.

A. Zouggari and L. Benyoucef, Simulation based fuzzy TOPSIS approach for group multi-criteria supplier selection problem, Engineering Applications of Artificial Intelligence, vol. 25, no. 3, pp. 507-519, 2012.

O. Jadidi, S. Zolfaghari and S. Cavalieri, A new normalized goal programming model for multi-objective problems: A case of supplier selection and order allocation, International Journal of Production Economics, vol.148, pp. 158-165, 2014.

V. Mummalaneni, K. M. Dubas, and C.-n. Chao, "Chinese purchasing managers' preferences and trade-offs in supplier selection and performance evaluation", Ind. Market. Manage., vol. 25, pp. 115-124, 1996.

M. Bendixen, K. A. Bukasa, and R. Abratt, "Brand equity in the business-to-business market", Ind. Market. Manage., vol. 33, pp. 371-380, 2004.

W. Y. Wu, Y. K. Liao, and A. Chatwuthikrai, "Applying conjoint analysis to evaluate consumer preferences toward subcompact cars", Expert Systems with Applications, vol. 41, pp. 2782-2792, 2014.

D. Kucukusta and B. D. Guillet, "Measuring spa-goers? preferences: A conjoint analysis approach", Int. J. Hospitality Manage., vol. 41, pp. 115-124, 2014.

E.-J. Lee, F. Chan, N. Ditchman, and M. Feigon, "Factors influencing Korean international students? preferences for mental health professionals: A conjoint analysis", Community Mental Health Journal, vol. 50, pp. 104-110, 2014.


  • There are currently no refbacks.