Integrating Lean into Supplier Selection Problems in Small and Medium-Sized Enterprises

Abstract

This study deals with lean philosophy and supplier selection problems in Small and Medium-Sized Enterprises (SMEs). Even though small businesses account for a significant amount of production in Turkey lean applications are relatively scant in supply chains. The aims of this study are threefold: firstly to present supplier selection criteria specifically tailored for SMEs from a lean management perspective, secondly to propose a flexible lean supplier selection model that aligns with the unique needs and constraints of SMEs, and finally to provide practical suggestions for implementing lean transformation initiatives within the case company to enhance operational efficiency and overall performance. The Integrated Analytical Hierarchy Process (AHP) and Technique for Order Preference by Similarity to An Ideal Solution (TOPSIS) method are proposed. The AHP method is used for the determination of the criterion weights while the TOPSIS method is used for supplier selection evaluation among three supplier alternatives. The case study was implemented for the manufacturing company considering 12 criteria and involved the evaluation and selection of three different suppliers that supply the same raw material with different supplier service properties. This research found that customized production capability the adaptation of new conditions and risk management and on-time delivery were the most crucial criteria for the case company, although financial condition and communication were the least important among the 12 criteria. Even though the cost is assumed to be the most essential criterion for the supplier selection process the cost was ranked middle in the rankings. © 2024 Elsevier B.V. All rights reserved.