Vendor Selection Risk Management Framework in Automotive Industry
International Journal of Mechanical Engineering and Applications
Volume 3, Issue 3-1, June 2015, Pages: 57-66
Received: Oct. 11, 2016; Accepted: Oct. 13, 2016; Published: Nov. 7, 2016
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Kamran Mohtasham, Department of Mechanical and Manufacturing Engineering, Faculty of Engineering, Universiti Putra Malaysia, Malaysia
Faieza Abdul Aziz, Department of Mechanical and Manufacturing Engineering, Faculty of Engineering, Universiti Putra Malaysia, Malaysia
Mohd Khairol Anuar B. Mohd Ariffin, Department of Mechanical and Manufacturing Engineering, Faculty of Engineering, Universiti Putra Malaysia, Malaysia
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Disruption of the supply chain can happen at any level of the process; therefore, investigation on the possible risks in the supply chain is inevitable in any SCM activity. Supplier failure is a major threat to the supply chain and to ensure proper vendor selection, this study aimed to establish a vendor selection procedure that can reduce the risk of supply chain disruption. Linear weighting method is used to analyze the risk factors and construct an empirically reliable model for supplier evaluation. The result of multi-criteria vendor evaluation model showed that supplier product quality had the highest degree of influence on vendor selection risk management. It was found that in a sequential order, product quality, human resources, financial power, governmental support, IT and R&D opportunities, and environmental vulnerability of the supplier are critical to supply chain management. The outcome of the current research is a vendor selection framework that utilizes the proposed supplier evaluation model to reduce the risk in vendor selection.
Vendor Induced Risks, Supply Chain, Risk Management
To cite this article
Kamran Mohtasham, Faieza Abdul Aziz, Mohd Khairol Anuar B. Mohd Ariffin, Vendor Selection Risk Management Framework in Automotive Industry, International Journal of Mechanical Engineering and Applications. Special Issue: Transportation Engineering Technology — Part Ⅱ. Vol. 3, No. 3-1, 2015, pp. 57-66. doi: 10.11648/j.ijmea.s.2015030301.19
Copyright © 2015 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License ( which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
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