A develop of vendor selection system for commercial banking industry in Thailand through fuzzy analytical hierarchy process

Name: Vasinee Upaiboon

Organization : Chulalongkorn University. Faculty of Engineering

Email : vasinee.upaiboon@sasin.edu

keyword: Vendor selection process

ThaSH: Fuzzy systems

ThaSH: Banks and banking -- Customer services

Abstract: Nowadays, competitiveness among commercial banks tends to increase year by year because of the ever-changing economic conditions, and new disruptive technologies. In order to improve their profit and market shares, commercial bank have to continuously improve their efficiency, i.e. focus on developing core business, and delegate their non-core business activities to outsourcing vendors. However, to select outsource vendors, it should not be based on only price. Other factors such as quality of products and/or services, production lead time, warranty, and vendor profile should be considered. Purchasing jobs can be categorized into 3 parts which are purchasing on office equipment, premium products, services, and construction related work. Considering those various factors is complicated which require appropriate tools to complete vendor selection and recruit proper vendors. From the interview, currently, to select all outsourcing vendors, the company uses Price Performance Ratio (PPR) which mainly focuses on offered price, or cost of company. Hence, it could be a problematic issues that the lower offered price vendor would be approved even it has lower performance on necessary skills. In this case study of a commercial bank to select appropriate vendors to take care of building, system and maintenance for commercial bank’s computer center in Bangkok, Thailand, various qualitative and quantitative factors should be considered which are price, quality, operating method, number of staff, and risks. Hence, this study aims to represent a Fuzzy Analytical Hierarchy Process to analyze problem of vendor selection under qualitative and quantitative factors by creating flow chart for the alternative, comparing each alternative and checking consistency index. Then, triangular fuzzy number is used to calculate for weighted score. In our study, it founds that FAHP selected a vendor which offers a better in work quality with a higher price. This result contradict the current result obtain using PPR as it only criteria. This is due to the fact that PPR mainly emphasize on price criteria. It reflects that FAHP could select vendor based on other high consideration factors, instead of offer price only

King Mongkut's University of Technology North Bangkok. Central Library

Address: BANGKOK

Email: library@kmutnb.ac.th

Modified: 2565-12-06

Issued: 2022-12-06

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BibliograpyCitation : ใน มหาวิทยาลัยเชียงใหม่ คณะวิศวกรรมศาสตร์. การประชุมวิชาการข่ายงานวิศวกรรมอุตสาหการ ประจำปี พ.ศ. 2560 (IE Network 2017) (pp.1349-1355). เชียงใหม่ : มหาวิทยาลัยเชียงใหม่

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