Supplier Selection Model Based on the Multi-Criteria Decision-Making Method and Implementation of the 5W2H Method to Reduce the Order-to-Delivery Lead Time in Mnaufacturing SMEs

Abstract :

Currently, Peruvian manufacturing companies have had an increase of 3.7% over the previous year, that is, 16.5% of the national GDP, whereas manufacturing SMEs have been reduced by 8.4% so far this year. Thus, we proposed a logistics enterprise architecture model aimed at reducing the supplier lead time through a multi-criteria decision-making (MCDM) method for supplier selection. This helps to make strategic decisions together with the suppliers and thus provides a better service to the end customer. We validated the model in a real case where we achieved a reduction of 48.8% in the total supplier lead time and an increase of 27.47% in perfect order fulfillment according to the specifications.