Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 Applying the Modified Failure Mode and Effects Analysis (MFMEA) Approach for Supplier Selection in Risk Environment Sayed Rezwanul Islam1*, Masudur Rahman2 and Sanwar-Ul-Quadir3 Selecting an appropriate supplier is essential for the success of a company. Supplier selection is a multi-criteria problem which involves both qualitative and quantitative factors. It is a complex, multi-person and group decision making process that can be improved by systematic and logical approaches to assess priorities based on the inputs of several people from different functional areas within the company. In this paper we have shown how fuzzy analytic hierarchy process (F-AHP) can be effectively used with failure mode and effects analysis (FMEA) approach for selecting the best supplier in risk’s environment. F-AHP is used to determine the relative weight of every criterion and FMEA is used to calculate the risk of every criterion and subcriterion related to the supplier. Therefore, this research proposes a modified FMEA approach to select the best supplier from supply chain risk’s environment. Field of Research: Management 1. Introduction Supplier selection can be defined as the process of finding the right suppliers. Manufacturers spend more than 60% of its total sales on purchased items [Krajewsld & Ritzman, 1996].Therefore, selecting the right supplier significantly reduces purchasing costs, improves competitiveness in the market and enhances end user satisfaction [Onut et.al., 2009]. Since supplier selection process mainly involves the evaluation of different criteria and various supplier attributes, so it can be considered as a multiple criteria decision making (MCDM) problem [Liao et.al.2011]. Dickson, the pioneer of supplier selection problem, identified 23 different criteria for selecting suppliers, including quality, delivery, performance history, warranties, price, technical capability, and financial position. With a thorough literature survey, [Weber, et. al.1991] reviewed 74 different articles by classifying into three categories; linear weighting methods, mathematical programming models, and statistical approaches. [Boran et.al.2009], identified four stages for supplier selection including; definition of the problem, formulation of criteria, qualification, and final selection respectively. The F-AHP approach is capable of handling the inherent subjectivity and ambiguity associated with the mapping of one's perception to an exact number. Hence, [Buckley, 1985] developed a fuzzy AHP model and following Buckley's work, various developments of Fuzzy AHP methods and applications have been carried out [Chen et.al.,2006]. To the best of the *Corresponding Author: Sayed Rezwanul Islam, Department of Industrial & Production Engineering, Rajshahi University of Engineering & Technology, Rajshahi-6204, Bangladesh. Email: syedrezwanulislam@gmail.com 2 Md. Masudur Rahman, Department of Industrial & Production Engineering, Rajshahi University of Engineering & Technology, Rajshahi-6204, Bangladesh. Email: mrahmanruet@gmail.com 3 Md. Sanwar-Ul-Quadir, Department of Industrial & Production Engineering, Shahjalal University of Science & Technology, Sylhet-3441, Bangladesh. Email: sanwarquadir@gmail.com 1 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 Author’s knowledge, no AHP, F-AHP and other multi-criteria decision making process is not so effective for supplier selection in risk environment. In risk environment, risk associated with different criteria should also be calculated. In this research work, we proposed a modified Failure Mode and Effects Analysis in which weights of different criteria are calculated by using F-AHP and risks associated with each criteria are calculated by FMEA. In this study, we have considered six criteria: cost, quality, deliverability, organizational behaviour, environmental assessment and twenty six sub-criteria. The main objectives of this study are to identify the main criterion and sub criterion that affects supplier selection decision and to evaluate the relative weights and risks associated with decision criteria. This study arranged as follows- Part 2 presents the literature review to identify the research scope on supplier selection of risk environment. Part 3 explains the methodology and the solution procedure. In this part, the F-AHP and FMEA methods are explained in detail which is utilized to solve the supplier selection of risk environment. Part 4 presents summarized results and the part 5 presents the conclusions of the study. 2. Literature Review Generally, when a supplier selection decision needs to be made, the enterprise establishes a set of evaluation criteria that can be used to compare potential sources. In supplier selection decisions, two issues are very significant, first one is what criteria should be used, and the next one is what methods can be used to compare suppliers. Many studies have been performed for supplier selection by using different criteria starting from the [Dickson, 1996] 23 criteria. [Cheraghi et. al., 2004] Updated Dickson’s criteria with 13 more criteria. As the pace of market globalization quickens, the number of criteria to be considered will increase [Arikan, 2013]. Quality, price, and delivery performances are suggested as the most important selection criteria for supplier selection [Liao & Kao, 2011]. Recently, it is observed that, various multi criteria decision making methods are implemented, which can be grouped into three broad categories [Wang, et. al., 2011]. These are: 1) Value Measurement Models: AHP and multi attribute utility theory (MAUT) are the best known method in this group. 2) Goal, Aspiration, and Reference Models: Goal programming and TOPSIS are the most important methods that belong to the group. 3) Outranking Methods: ELECTRE and PROMETHEE are two main families of methods in this group. The impreciseness of human judgments can be handled through the fuzzy sets theory developed by Zadeh [Zadeh, 1965]. Fuzzy AHP method [Cheng, 1997], [Cheng, et. al., 1999], [Ruoning & Xiaoyan, 1992] systematically solves the selection problem that uses the concepts of fuzzy set theory and hierarchical structure analysis. Applications of F-AHP in various fields including; weapon selection [Dağdeviren & Yüksel, 2009], energy alternatives selection [Kahraman & Kaya, 2010], job selection [Kilic & Cevikcan, 2011] and performance evaluation systems [Kilic, 2011], [Kilic & Cevikcan, 2012]. In 2010, a Fuzzy AHP method is used for supplier selection in electronic market places [Chamodrakas, et.al.2010]. In 2011, Fuzzy AHP approach is used for supplier selection in a washing machine company [Kilincci & Onal, 2011]. In 2012, a combination of fuzzy AHP and fuzzy objective linear programming is used to select the best supplier to develop a low carbon supply chain [Shaw, et.al.2012]. In 2013, an interactive solution approach is proposed for multiple objective supplier selection problems with Fuzzy AHP [Arikan, 2013]. In risk environment, FMEA is a very popular method of measuring preventing risks [Liu, et. al., 2013]. The traditional FMEA evaluated 2 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 risks by only calculated the RPNs. It does not calculate the relative weight of the criteria. [Hughes et al., 1999] stated that traditional quantitative methods for modeling mechanical systems are in-appropriate for automated mechanical production. [Arunachalam & Jegadheesan, 2006] proposed a new FMEA with reliability and cost based approach to overcome the drawbacks of traditional FMEA. FMEA does not allow one to differentiate between different risks implications [Sankar & Prabhu, 2001]. [Chen, 2007] modify the traditional FMEA by using Interpretive Structural Model (ISM) to evaluate the structure of hierarchy and interdependence of corrective action and then calculate the weight of a corrective action through the analytic network process (ANP). [Dong, 2007] modify the traditional FMEA by using fuzzy based utility theory and fuzzy membership functions to assess severity, occurrence and detection. [Wang et al., 2009] modify the traditional FMEA by using Fuzzy Risk Priority Numbers (FRPNs) to prioritize failure modes and fuzzy geometric means to weigh the fuzzy ratings for Occurrence (O), Severity (S) and Detection (D). [Narayanagounder et al. 2009] addressed the limitations in traditional FMEA and proposed a new approach to overcome these shortcomings. In any decision making problem, all the criteria associated with it do not have the same impact. So it is necessary to calculate the weight of every criteria. Our proposed MFMEA not only calculate the RPNs but also measure the weights of criteria under uncertainty. 3 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 3. Methodology Step 1: Determining criteria for supplier selections Step 2: Conducting the MFMEA method: 2.1. Defining a scoring system for the supplier selection 2.2. Identifying the potential failure modes 2.3. Evaluating the impact of a failure mode and justifying its severity. Following scales are used for severity: Seve Rat Descriptions rity ing Rem 1 Cost: supplier offers cheap raw material ote Quality: supplier offer very few defects material Deliverability: supplier very rarely miss the on time delivery Productivity: supplier has a strong ability to manufacture raw materials for the company organizational behaviour: supplier can handle the case company’s complaint within very short time Environmental assessment: very little amount of emission of CO2 , NOx , SO2 and dust Low 2 Cost: supplier offers medium-priced raw material Quality: supplier offer small amount defects material Deliverability: supplier rarely miss the on time delivery Productivity: supplier has a normal ability to manufacture raw materials for the company organizational behaviour: supplier can handle the case company’s complaint within moderate time Environmental assessment: little amount of emission of CO 2 , NOx , SO2 and dust Mod 3 Cost: supplier offers high-priced raw material erate Quality: supplier offer many defects material Deliverability: supplier miss the on time delivery most of the time Productivity: supplier has low ability to manufacture raw materials for the company organizational behaviour: supplier can handle the case company’s complaint within long time Environmental assessment: : moderate amount of emission of CO2 , NOx , SO2 and dust High 4 Cost: supplier offers very expensive raw material Quality: supplier offer abundant defects material Deliverability: supplier always miss the on time delivery Productivity: supplier has very low ability to manufacture raw materials for the company organizational behaviour: supplier can handle the case company’s complaint within very long time 4 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 Environmental assessment: : large amount of emission of CO2 , NOx , SO2 and dust 2.4. Determining factors that cause to failures and classifying the probability of occurrence of the failure. Following scales are used for occurrence: Oc Ra Descriptions cur tin anc g e Re 1 Cost: supplier rarely offers expensive raw materials mot Quality: supplier rarely offers defects material e Deliverability: supplier very rarely miss the on time delivery Productivity: supplier rarely cannot manufacture raw materials for the company organizational behaviour: supplier rarely fails to handle the case company’s complaint Environmental assessment: supplier rarely emits CO2 , NOx , SO2 and dust in a large scale Lo 2 Cost: supplier often offers expensive raw materials w Quality: supplier sometimes offers defects material Deliverability: supplier rarely miss the on time delivery Productivity: supplier cannot sometimes manufacture raw materials for the company organizational behaviour: supplier sometimes fails to handle the case company’s complaint Environmental assessment: supplier sometimes emits CO2 , NOx , SO2 and dust in a large scale Mo 3 Cost: supplier usually offers expensive raw materials der Quality: supplier often offers many defects material ate Deliverability: supplier miss the on time delivery most of the time Productivity: supplier often cannot manufacture raw materials for the company organizational behaviour: supplier fails to handle the case company’s complaint most of the time Environmental assessment: supplier emits CO2 , NOx , SO2 and dust most of the time in a large scale Hig 4 Cost: supplier always offers expensive raw materials h Quality: supplier offers abundant defects materials Deliverability: supplier always miss the on time delivery Productivity: supplier usually cannot manufacture raw materials for the company organizational behaviour: supplier always fails to handle the case company’s complaint Environmental assessment: supplier always emits CO2 , NOx , SO2 and dust in a large scale 5 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 2.5. Delineating the detection of each failure and scoring each sub-criteria. Following scales are used for detection: Detection Rating Probability of detection(%) for all criteria Remote 1 76-100 Low 2 51-75 Moderate 3 26-50 High 4 0-25 2.6. Weighting each criterion based on its importance: We have used Fuzzy analytic hierarchy process to determine the relative weights of each criterion. 2.6.1. Fuzzy Analytic Hierarchy Process Fuzzy Analytic Hierarchy Process (F-AHP) embeds the fuzzy theory to basic Analytic Hierarchy Process (AHP). It takes the pair-wise comparisons of different alternatives with respective to various criteria that are performed through the linguistic variables, which are represented by triangular numbers and provides a decision support tool for multi criteria decision problems. F-AHP uses the following steps: i. Decision Maker compares the criteria or alternatives via linguistic terms shown in Table Table: Linguistic terms and the corresponding triangular fuzzy numbers Saaty Scale Definition Fuzzy triangular Scale 1 3 5 7 9 2 4 6 8 Equal important Weakly important Fairly important Strongly important Absolutely important The intermittent values between two adjacent scales (1,1,1) (2,3,4) (4,5,6) (6,7,8) (9,9,9) (1,2,3) (3,4,5) (5,6,7) (7,8,9) 6 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 ii. If there is more than one decision maker, preferences of each decision maker (dkij ) are averaged and (dij) is calculated as follows: k ∑k k=1 dij dij= K iii. According to averaged preferences, pair wise contribution matrices is updated as follows: d11 ⋯ d1n ⋱ ⋮ ] A=[ ⋮ dn1 ⋯ dnn iv. The geometric mean of fuzzy comparison values of each criterion is calculated as follows: 1/n ri= (∏nj=1 dij ) i= 1, 2, 3,…….n Where, ri represents triangular values. v. The fuzzy weights of each criterion can be found with Eq. (a), by incorporating next three steps. vi. Find the vector summation of each ri vii. Find the (-1) power of summation vector. Replace the fuzzy triangular number, to make it in an increasing order. viii. To find the fuzzy weight of criterion i (wi), multiply each ri with this reverse vector. wi = ri ×(r1 +r2 + ………+rn )-1 = (lw , mw , uw )…………………………. (1) i i i Since wi are still fuzzy triangular numbers, it is de-fuzzified by using the following equation: lw +mw + uwi Mi = i 3 i ………………………... (2) Mi is a non- fuzzy number. It is normalized by using following equation: M Ni =∑n iM ……………………………….. (3) i=1 2.7. i Calculating the RPN by FMEA 2.7.1. Failure Mode and Effects Analysis It is a proactive tool, technique and quality method that enables the identification and prevention of process or product errors before they occur. In FMEA, the Risk Priority Number (RPN) is defined as follows: Risk Priority Number (RPN), R= S×O×D ……………………………………..... (4) Where, “S” is called the Severity, which may be defined as an assessment of how serious the effect of the potential failure mode is on the customer. “O” is called the probability of Occurrence, which may be defined as an assessment of the likelihood that a particular cause will happen and result in the failure mode during the intended life of the product. “D” is called the Detection, which may be defined as the assessment of the likelihood that the current controls will detect the cause of the failure mode. This can be defined also as the likelihood that the defect will reach the customer. 7 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 2.8. Sorting each criterion by its RPNs Step 3: Categorizing qualified suppliers 4. Summarized Results Table 3. The comparisons among three suppliers Criterion Weight RPNs of Each criterion Supplier A Supplier B Supplier C Cost 1.159635 1.003666 1.503678 Quality 3.377229 1.954132 3.37432 Deliverability 0.784574 0.701019 0.49403 Productivity 0.30117 0.177869 0.40156 Organizational 0.430184 0.392957 0.42191 behaviour Environmental 0.513261 0.465397 0.47601 assessment Average RPNs of six 1.094342 0.782507 1.11192 criteria From the above table it is clear that Supplier B give a fair result than the other two suppliers. Only in one case i.e. in deliverability Supplier C give fair result than Supplier A and Supplier B. Hence, supplier B outperforms in all sections except deliverability. The weighted RPNs of supplier B is 0.782507 which is far less than supplier A and supplier C. Hence, the best supplier is Supplier B. The detail calculations of each supplier is shown in Appendix. 5. Conclusions Supplier selection performed using conventional approach, which does not have the ability to calculate relative weight and risk associated with each criterion at the same time. Multicriteria decision making (MCDM) approaches only measure the relative weights of every alternatives and on the basis of the relative weights it take decision. Conventional failure mode and effects analysis only calculate the risks, it does not measure the relative weights of criteria. In this study, we propose a modified failure mode and effects analysis (MFMEA) to select the best supplier in supply chain risk environment. This propose method overcome the limitation of conventional failure mode and effects analysis (FMEA). To verify the feasibility of this propose method, we have done case study on Steel Manufacturing Company. In this research because of confidentiality the suppliers’ exact names are hidden. None of the voters claim anything negative about the selection process and they were also 8 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 very satisfied about the selection process. Despite the contributions, the study has still some limitations. The study is based on the information given by the suppliers. And the relative weight of every criterion may be changed when the case company will different. We consider six criteria and twenty six sub criteria for this work, but it may not be sufficient for other company. Other than the F-AHP, the other multi-criteria decision making approach such as Fuzzy Analytic Network Process (ANP), Fuzzy TOPSIS etc. can also be used with FMEA. The authors also suggest to use Fault tree analysis, Delphi method or stress testing other than FMEA and to incorporate with MCDM approaches. References Arikan, F, 2013 “An interactive solution approach for multiple objective supplier selection problem with fuzzy parameters”, Journal of Intelligent Manufacturing, DOI: 10.1007/s10845-013-0782-6. Arunachalam, VP and Jegadheesan, C, 2006, “Modified Failure Mode and effects Analysis: A Reliability and Cost-based Approach”, The ICFAI Journal of Operations Management, Vol.5 N0.1, pp. 7-20 Boran, F.E., Genç, S., Kurt, M., and Akay, D., 2009 “A Multi Criteria Intuitionistic Fuzzy Group Decision Making for Supplier Selection with TOPSIS Method”, Expert Systems with Applications Vol. 36 (8), 11363-11368 Cheraghi, S. H., Dadashzadeh,M., & Subramanian, M., 2004 “Critical success factors for supplier selection: An Update”, Journal of Applied Business Research, Vol. 20(2), 91– 108. Cheng, C.H., 1997 “Evaluating Naval Tactical Missile System by Fuzzy AHP Based on the Grade Value of Membership Function”, European Journal of Operational Research Vol. 96(2), 343-350. Chen, C.T., Lin, C.T., and Huang S.F., 2006 “A Fuzzy Approach for Supplier Evaluation and Selection in Supply Chain Management”, International Journal of Production Economics, Vol.102 (2), 289-301. Chen J.K., 2007, “Utility Priority Number Evaluation for FMEA”, Journal of Failure Analysis and Prevention, Vol. 7 No. 5, pp. 321-328 Cheng, C.H., Yang, L.L., and Hwang, C.L., 1999 “Evaluating Attack Helicopter by AHP Based on Linguistic Variable Weight”. European Journal of Operational Research, Vol. 116(2), 423-435. Chamodrakas, I., Batis, D., and Martakos, D., 2010 “Supplier selection in electronic marketplaces using satisficing and fuzzy AHP”, Expert Systems with Applications, Vol.37 (1), 490-498. 9 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 Dağdeviren, M., and Yüksel, İ., 2009 “Weapon selection using the AHP and TOPSIS methods under fuzzy environment”, Expert Systems with Applications, Vol. 36(4), 8143-8151. Dong, C., 2007 “Failure mode and effects analysis based on fuzzy utility cost estimation”, International Journal of Quality and Reliability Management, vol. 24 No 9, pp. 958 –971 Dickson, G.W., 1966 “An Analysis of Vendor Selection Systems and Decision”. Journal of Purchasing Vol.2 (1), 5-17. Huges, N., Chou, E., Price, C. J. and Lee, M., 1999, “Automating mechanical FMEA using functional models, Proceedings of the Twelfth International Florida Al Research Society Conference, (AAAI Press, Menlo, CA), pp. 394-398. Krajewsld, L.J., and Ritzman, L.P., 1996 Operations Management Strategy and Analysis. Addison-Wesley Publishing Co., London, UK. Kahraman, C., & Kaya, İ., 2010 “A fuzzy multicriteria methodology for selection among energy alternatives”, Expert Systems with Applications, Vol. 37(9), 6270-6281. Kilic, H.S. and Cevikcan, E., 2011 “Job Selection Based on Fuzzy AHP: An investigation including the students of Istanbul Technical University Management Faculty”, International Journal of Business and Management Studies, Vol. 3(1), pp. 173-182. Kilic, H.S., 2011 “A fuzzy AHP based performance assessment system for the strategic plan of Turkish Municipalities”, International Journal of Business and Management Studies, Vol. 3(2), 77-86. Kilic, H.S. and Cevikcan, E., 2012 “A hybrid weighting methodology for performance assessment in Turkish municipalities”, Communications in computer and information science, Vol. 300, 354-363. Kilincci, O., & Onal, S. A., 2011 “Fuzzy AHP approach for supplier selection in a washing machine company”, Expert Systems with Applications, Vol. 38(8), 9656-9664. Liao, C.N., and Kao, H.P., 2011 “An Integrated Fuzzy TOPSIS and MCGP Approach to Supplier Selection in Supply Chain Management”, Expert Systems with Application Vol.38 (9), 10803-10811. Liu, H. C., Liu, L., & Liu, N. 2013. Risk evaluation approaches in failure mode and effects analysis: A literature review. Expert Systems with Applications, 40(2), 828–838. Narayanagrounder, S. and Gurusami, K., 2009, “A New Approach for Prioritizing of Failure Modes in Design FMEA using ANOVA, Journal of World Academy of Science (Engineering and Technology), Vol. 49, 2009, pp. 524-531. 10 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 Önüt, S., Kara, S.S., and Işık, E, (2009) “Long Term Supplier Selection Using a Combined Fuzzy MCDM Approach: A Case Study for a Telecommunication Company”, Expert Systems with Applications Vol. 36(2), 3887-3895. Petkovic, J., Sevarac, Z., Jaksic, M.L., Marinkovic, S., 2012 “Application of fuzzy AHP method for choosing a technology within service company”, Technics Technologies Education Management, Vol.7 (1), 332-341 Ruoning, X. and Xiaoyan, Z., 1992 “Extensions of the Analytic Hierarchy Process in Fuzzy Environment”, Fuzzy Sets and System Vol. 52(3), 251-257. Shaw, K., Shankar, R., Yadav, S.S., and Thakur, L.S., 2012 “Supplier Selection Using Fuzzy AHP and Fuzzy Multi Objective Linear programming for developing low carbon supply chain”, Expert System with Applications, Vol. 39(9), 8182-8192. Sankar, NR and Prabhu, B.S., 2011, “Modified Approach for Prioritizing of Failures in a System Failure Mode and Effects Analysis”, International Journal of Quality and Reliability Management, Vol. 18, No. 3, pp. 324-335 Weber, C.A., Current J.R. and Benton, W.C. 1991, “Vendor Selection Criteria and Methods”, European Journal of Operational Research Vol.50 (1), 2-18. Wang, J.W., Cheng, C.H., and Cheng, H.K., 2009, “Fuzzy Hierarchical TOPSIS for Supplier Selection”, Applied Soft Computing 9 (1), 377-386. Wang, Y.M, Chin, K.S, Poon G.K, and Yang, J.B., 2009, “Risk evaluation in failure mode and effects analysis using fuzzy weighted geometric mean”, Journal od Expert Systems with Applications, Vol. 36, pp. 1195-1207 Zadeh, L.A., 1965 “Fuzzy Sets”, Information and Control Vol.8 (3), 199-249. 11 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 Appendix Table A1: Synthesized table of weighted RPNs of supplier A supplier A Criterion Cost Quality Deliverability Productivity organizational behaviour environmental assessment Sub criterion risk assessment S O D RPN product's cost Inbound transportation cost charge of support service exchange rate input quality control Reliability Durability defect rate product line compliant rate production cycle on time livery delivery lead time idle rate productivity flexibility amount of production responsiveness 2 3 2 2 1 1 4 6 subcriterion's weight(Wi) 0.09038 0.029472 weight RPN (Ri) 3 2 1 6 0.029472 0.176831 2 2 3 2 2 3 4 3 2 4 4 2 1 1 1 1 1 1 8 6 6 8 8 6 0.055557 0.198583 0.106223 0.106223 0.048825 0.051335 0.444455 1.191499 0.637338 0.849784 0.390596 0.308012 4 2 3 2 2 2 3 2 4 3 1 1 1 1 1 8 6 6 8 6 0.018158 0.053747 0.008882 0.032942 0.033012 0.145262 0.322485 0.053291 0.263536 0.198071 3 3 1 9 0.011455 0.103099 4 2 1 8 0.010276 0.082205 claim policy social responsibility research & development Reputation Innovation energy consumption green packaging waste management recyclable/reusable product Emission 3 4 3 2 3 4 1 1 1 6 12 12 0.010276 0.005791 0.010276 0.061654 0.069487 0.123307 4 3 4 3 2 2 1 1 1 12 6 8 0.002656 0.010276 0.016026 0.031877 0.061654 0.128208 2 3 3 4 1 1 6 12 0.016026 0.016026 0.096156 0.192312 2 3 1 6 0.005413 0.032481 2 2 1 4 0.016026 0.993332 0.064104 6.566052 1.094342 0.361518 0.176831 12 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 Note: “S” means Severity; “O” means Occurrence; and “D” means Detection Risk Priority Number = S×O×D; Weight RPN (Ri) = Criterions weight (W i) × RPN Table A2: Synthesized table of weighted RPNs of supplier B Supplier B Criterion Cost Quality deliverability productivity organizational behaviour environmental assessment Sub criterion risk assessment S O D RPN product's cost inbound transportation cost charge of support service exchange rate input quality control Reliability durability defect rate product line compliant rate production cycle on time livery delivery lead time idle rate productivity flexibility amount of production responsiveness 3 2 2 3 1 1 6 6 subcriterion's weight(Wi) 0.09038 0.029472 weight RPN(Ri) 2 2 1 4 0.029472 0.117887 3 1 2 3 3 2 1 2 3 1 2 3 1 1 1 1 1 1 3 2 6 3 6 6 0.055557 0.198583 0.106223 0.106223 0.048825 0.051335 0.166671 0.397166 0.637338 0.318669 0.292947 0.308012 3 1 2 3 2 1 2 3 2 4 2 4 1 1 1 1 1 1 6 3 4 12 4 4 0.018158 0.053747 0.008882 0.032942 0.033012 0.011455 0.108947 0.161242 0.035527 0.395303 0.132047 0.045822 3 2 1 6 0.010276 0.061654 claim policy social responsibility research & development reputation innovation energy consumption 2 3 3 4 1 3 1 1 1 8 3 9 0.010276 0.005791 0.010276 0.082205 0.017372 0.092481 3 3 4 2 4 1 1 1 1 6 12 4 0.002656 0.010276 0.016026 0.015938 0.123307 0.064104 green packaging waste management recyclable/reusable product Emission 2 4 3 4 2 3 1 1 1 8 8 9 0.016026 0.016026 0.005413 0.128208 0.128208 0.048721 2 3 1 6 0.016026 0.993332 0.096156 4.695041 0.782507 0.542277 0.176831 13 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 Note: “S” means Severity; “O” means Occurrence; and “D” means Detection Risk Priority Number = S×O×D; Weight RPN (Ri) = Criterions weight (W i) × RPN Table A2: Synthesized table of weighted RPNs of supplier C supplier C criterion cost quality deliverability productivity organizational behaviour environmental assessment Sub criterion risk assessment S O D RPN product's cost inbound transportation cost charge of support service exchange rate input quality control Reliability Durability defect rate product line compliant rate production cycle on time livery delivery lead time idle rate productivity flexibility amount of production responsiveness 3 2 2 3 1 1 6 6 subweight criterion's RPN(Ri) weight(Wi) 0.09038 0.542277 0.029472 0.176831 2 2 1 4 0.029472 0.117887 3 2 3 4 2 3 4 2 3 3 2 1 1 1 1 1 1 1 12 4 9 12 4 3 0.055557 0.198583 0.106223 0.106223 0.048825 0.051335 0.666683 0.794333 0.956007 1.274676 0.195298 0.154006 3 2 3 3 4 3 2 1 3 2 2 4 1 1 1 1 1 1 6 2 9 6 8 12 0.018158 0.053747 0.008882 0.032942 0.033012 0.011455 0.108947 0.107495 0.079936 0.197652 0.264095 0.137465 3 2 1 6 0.010276 0.061654 claim policy social responsibility research & development Reputation Innovation energy consumption 3 4 2 3 2 4 1 1 1 9 8 8 0.010276 0.005791 0.010276 0.092481 0.046325 0.082205 2 3 3 3 4 3 1 1 1 6 12 9 0.002656 0.010276 0.016026 0.015938 0.123307 0.144234 green packaging waste management recyclable/reusable product Emission 3 3 4 2 2 2 1 1 1 6 6 8 0.016026 0.016026 0.005413 0.096156 0.096156 0.043308 2 3 1 6 0.016026 0.096156 14 Proceedings of 13th Asian Business Research Conference 26 - 27 December, 2015, BIAM Foundation, Dhaka, Bangladesh, ISBN: 978-1-922069-93-1 0.993332 6.671506 1.111918 Note: “S” means Severity; “O” means Occurrence; and “D” means Detection Risk Priority Number = S×O×D; Weight RPN (Ri) = Criterions weight (W i) × RPN 15