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Reference No:

Department of Garment Manufacturing


Faculty of Engineering & Technology
National Textile University, Faisalabad

A thesis submitted to fulfill the partial requirement for the degree of Bachelors of Science in
Textile Engineering

Study of supply chain management processes in Pakistans knitwear industry.

Submitted by:
Sajid Saleem (09-NTU-167)

Date of Final Presentation:

01-10-2013

Supervisor: Dr. Abher Rasheed & Dr. sajjad Baig

DEDICATION
This modest effort is dedicated to my Parents and Teachers
&
The Mother Institute of Textile, National Textile University Faisalabad

ii

CERTIFICATE
NATIONAL TEXTILE UNIVERSITY, FAISALABAD

This thesis, written by Sajid Saleem under the direction of their supervisors and approved by all
the members of the thesis committee, has been presented to and accepted by the Department of
Garment Manufacturing, in fulfillment of the requirement of the degree of Bachelors of Science
in Textile Engineering.

Co-supervisor

Supervisor

Internal Examiner

External Examiner

Head of Department

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Acknowledgement
I am highly obliged to Almighty Allah, the most beneficent and the most merciful whose
persistent blessings prosper our thoughts and confirm our power and capabilities to take this
material contribution in already existing ocean of knowledge. Vacillating lips and wet eyes extol
for Holy Prophet Muhammad (P.B.U.H) for enlightening our conscience with the soul of faith
in Allah.
There are many names that deserve the appreciation. I will like to express my gratitude to my
project supervisor Dr. Abher Rasheed Assistant Professor, Garment Manufacturing Department
and Dr.Sajjad Baig Assistant Professor Department of Management Sciences, National Textile
University Faisalabad. I am specially thankful and appreciative to my supervisor for their
guidance, knowledge and skills in thesis areas. It was through their persistence, understanding
and kindness that I completed my research project. I doubt that I will ever be able to convey my
appreciation fully, but I owe him my eternal gratitude.
I am also thankful to those industries which provide their working data for my project. No
acknowledgement could ever effectively express my obligations to my affectionate and loving
Parents whose hands always rose in prayers for me. And without their ethical, moral and
financial support, the present distinction would have merely been a dream. May Allah bless them
long happy and peaceful lives (Ameen).
I would close my words of acknowledgement with great thanks and gratitude to all those names
that are the beauty of this report. Without their support, my ambition can hardly be realized.

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Table of contents
DEDICATION ................................................................................................................................ ii
CERTIFICATE .............................................................................................................................. iii
Acknowledgement ......................................................................................................................... iv
List of Table .................................................................................................................................. vii
Abstract. ....................................................................................................................................... viii
CHAPTER#1 .................................................................................................................................. 1
INTRODUCTION .......................................................................................................................... 1
1.1 Importance ............................................................................................................................. 1
1.3 Practical implications ............................................................................................................ 1
1.4 Supply Chain Management. .................................................................................................. 1
CHAPTER 2 ................................................................................................................................... 4
2.1 Literature Review .................................................................................................................. 4
CHAPTER 3 ................................................................................................................................. 10
3.1 Methodology ....................................................................................................................... 10
3.2 Sample and procedure ......................................................................................................... 11
3.3.1 Pearson correlation ....................................................................................................... 11
3.3.2 Descriptive Statistics .................................................................................................... 12
CHAPTER 4 ................................................................................................................................. 13
RESULTS AND DISCUSSIONS ................................................................................................. 13
4.1 Pearson correlation: ............................................................................................................. 13
4.2 Descriptive Statics ............................................................................................................... 16
4.3 Questionnaire ...................................................................................................................... 20
CHAPTER #5 ............................................................................................................................... 23
5.1 Reasons behind the poor supply chain management process .............................................. 23
5.1.1 Long sourcing time ....................................................................................................... 23
5.1.2 Poor production planning ............................................................................................. 24
5.1.3 Improper information sharing system with supplier and customer .............................. 24
5.1.4 Ignorance from modern tools of production ................................................................. 24
5.1.5 Absence of documentation and track the uncertainties ................................................ 24
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5.1.6 Complexity of business process ................................................................................... 25


5.1.7 Too much Use of non-value added actives ................................................................... 25
5.1.8 Bad quality from supplier ............................................................................................. 25
5.1.9 Huge inventory ............................................................................................................. 25
5.1.10 Inadequate Production scheduling .............................................................................. 26
5.1.11 Poor relations with the supplier .................................................................................. 26
5.1.12 Poor performance measure system ............................................................................. 26
Conclusion .................................................................................................................................... 27
Limitations .................................................................................................................................... 28
Future work ................................................................................................................................... 29
References ..................................................................................................................................... 30

vi

List of Table
Table 1: Correlation Table ............................................................................................................ 13
Table 2: Descriptive Statics .......................................................................................................... 16

vii

Abstract.
This research project is aimed to study the supply chain management process in Pakistan
knitwear industries. The purpose of this research work is to find out different weak areas in
supply chain management and increase the information about basic conditions of supply chain
management. So the different supply chain management problems should be solved.
To manage the supply chain management and to reduce lead time is a very complex problem.
The supply chain management process can be described by simple steps but it does not mean that
the control of these steps is also simple. Each step requires several steps to consider.
In the globalization of world only those organizations can survive which improve their supply
chain management system .The supply chain management system has a great impact on the
organizations performance. Small improvements in the supply chain management system cannot
bring effective results .Its the need of the hour to apply an effective supply chain management
process to capture the market and compete with others.
It can be said that this work could not change all the poor areas of supply chain in Pakistan
knitwear but we hope that this will be an effective approach to solve the supply chain
management issues.

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CHAPTER#1
INTRODUCTION
1.1 Importance
The researches in supply chain management are getting importance day by day. Due to
globalization of the world apparel traders are seeking to develop a durable managing process for
compete their competitors. For compete in market effective and process measurement tools are
necessary. With performance measurement system firms can find out the lacks in its process and
can build an effective managing system of materials and mens.
In Pakistan knitwear industry the concept of supply chain management also getting importance.
Steps are taken to improve and find out an efficient supply chain management system. To study
the supply chain management in Pakistan knitwear industries this project was held at National
Textile University.

1.2 Objective
The objective of our research work is to study the supply chain management system used in
Pakistan knitwear industries, and find the areas for improvement.

1.3 Practical implications


Knitwear industries in Pakistan can be able to develop an effective supply chain management
system by using our results and implications.
1.4 Supply Chain Management.
The process of supply chain management can be described through the movement of money,
services, informations, also goods equally indoors and amongst business units containing
customers producers and suppliers. Furthermore it contains all the groups involved in, managing
the material, materials warehousing, trims and accessories management, sourcing of accessories,
finding, making planning, order handling, and, finally buyer satisfaction jobs completed in a
supply chain process. Ultimate goal of supply chain management is to fulfill customer

requirement with true manufactured goods, in the true amount, in accurate position, in exact
hour.
There are different components of supply chain management like planning, which is an already
plan component. It is the need of hour to manage entirely capitals which have a major role in
consumers requests to respond manufactured article or deal. Raising an established value system
is also important to monitor the supply chain, to make it effective and provide top quality price to
consumers. Sourcing in which the firms select dealers to provide the things and facilities they
required for manufacturing. Merchandiser builds their relations in market in a way to managing
goods easily at low price. Manufacturing, this is a built-up stage. The manager in a firm enlists
the various procedures for manufacturing of an article. It has a vital role in firms quality and
marketing. Distributions, which can be explain as logistics. In this process the companys focus
on the distribution of good at the door steps of their customers. Different alliances with shipping
companies are done and the product is packed and sent to customers according to customer
requirements and instructions. To managing a supply chain all the peoples involve in it should be
determines to fulfill customers and buyers requirements. The firms have local as well as
international buyers and customers for make the sourcing and marketing of accessories and
material as easy as possible.
The selection of your suppliers is also much important in supply chain management. The firms
select the suppliers which offer quality with low price and in a shorter time period. Its your own
choice to choose a single or multiple suppliers which are also depend on your relations with
supplier and your trust on supplier.
To sustain and compete in market all the firms try to reduce their manufacturing cost by seeking
a suitable supplier , try to make a quality product , and the distribution and delivery of product
as effective as possible. With the globalization of world the supply chain management gets more
importance. With this globalization the customers now have many options for select supplier
which can offer him low price and high-quality. Only those firms could be sustain which are
aware of market and has an effective supply chain management system for deliver product in
short time as soon possible.
To find better response to fulfilling customer requirements in the violent worldwide opposition,
companies have experienced intensive variations in their operating policies. Firms have
rationalized in a struggle to increase effectiveness and satisfy consumers hopes. The purpose of
2

this is to improve value-added processes that bring low cost and high quality products. The key
aim is to make a product having quality for consumers at a sensible cost and to raise the earnings
of investors.
Managing the lead- time is always important in each stage in supply chain management. The
uncertainties can be described in two ways which are uncertainty in lead time and in customer
demand. Lead time which is the time require from order to shipment of a product. Lead-time can
be affected by many reasons which can be managed and control. Unsuccessful delivery
suddenly, occurring events, improper system of information sharing are the main causes which
produce uncertainty in lead time. Uncertainty is measured in my researches and efforts are
making to eliminate lead time issues. [1]

CHAPTER 2
2.1 Literature Review
The supply chain management process has gained much importance in recent years. Many
improvements techniques have been introduced during last years.
Handfield and Nichols (1999) identified that all firms requires one or more resourcing firms for
its supply chain management. A firm can be described by its supply chain management context.
It is no issue weather it delivers its product to top end customers, or at buyer shops. [2]
Ko et al. (2000) discovered the significance of business with respect to quick response in supply
chain management in apparel industry. They defined quick response in terms of finding new and
better procedures, continuous connection with supplier and customer and development of new
business strategies like electronic data interchange system in business. [3]
Vinelli and Forza (1996) explain a logical arrangement of clothing plan procedures for quick
response. The models suggested were based on inspection of time of each operation in
manufacturing of an order and study of supply chain with respect to design. They identify the
areas for improvements in supply chain and suggest that in apparel plan chain discount of
variation in production input and tin acquisitions decrease the design lead time throughout
planning. [4]
Perry and Sohal (2001) considered quick response observation happened in supply chain in
Australian cloths, outfit and footwear manufacturing. Their observation was emphases on binary
major objectives: to improve fitted companies amongst groups in place of trader, construction
and providers, to promote supply chain firms to apply electric facts exchange technology for
well trades data sharing. [5]
Lin et al. (2001) described topper forms in Hong Kong cloth and apparel production units. They
identified that clothing supply chain trials are mostly starting from customer and supplier. When
raw material prices increase, customer needs advanced quality by means of low expense. The
conclusion of their study was to use continually information sharing between business units to
make an effective supply chain management. They also suggest that technologies like electronic
data interchange can be the solution of many supply chain problems. [6]

Naim and Berry (1996) describe reproduction uses and find out solution of different restrictions
policies by studying a special PCs producer firm in Europe. [8]
Tricka and Reiner (2004) suggest that the study of supply chain management is necessary in
these days. The performance become necessary and without this it is so hard to develop an
effective supply chain. Different case studies were done to explain the role of performance
measurement. [9]
Wasusriet al. (2004) studies the concept of event reproduction in a T-shirt company to study the
uncertainty faced in this company. [10]
Vollrath et al. (2004) study that how textile trade doubled in a decade due to global market
situation ,removal of barriers in textile trade , advancement in customer manufacturer relations
and decrease garment prices during the decade .Their study was also consisted on the dramatic
changes occur in textile sector during past ten years.[11]
Hunter et al., (2002) studied that with the change of supply base clothing demands and trends
also change. In all products the apparel demands are almost disjoint with fashion changes. [12]
Sen (2008) studied that variations in product and invention in product are getting importance in
these days. [13]
Wadhwa et al., (2008)

studied that textile supply chain consist on ,customers ,retailers

,manufacturers ,distributors ,yarn and fabric producers, logistic companies, warehouse


companies, garment manufacturer units and final customer.[14]
Chan (2003) studied that ultimate goal of globalization is to win, and offer low price than
competitors. Performance measure can be defined as the calculation of usefulness and efficiency
of a process. It has serious part in improving inspiration and information flow, observing
performance, and identifying problems. [15]
Popp (2004) proposes that many chains consist of intermediary which is export or import agency
have a great importance in supply chain management .This tend to increase by the globalization
of the world. [16]
Tsay, and Agrawal, (2002) studied that in knitwear firms, the plan of sourcing should mirror the
routine performance for source based. Some variations are possible in your suppliers creates
problems. Sellers with lowermost charges, no book ability as well as consignment intervals of
numerous months regularly, are essential for over-all manufacturing.[17]

Kincade and Lee, (2003) studied that clothing sellers offer different products to their customers
with respect to fashion and price .The fashion trends can be determine by amount of style
changes and peoples preferences.[18]
Romano &Vinelli, (2004) describe that quality is vital factors in these days to satisfy customer
and to run your business. Without quality you cannot exist in highly competitive market. Only
those organizations can stand which offer quality with lowest price. [19]
Moore, Fiorito (2006) described that highly fashion article are affected by instability. Its hard to
forecast trends change and customer needs. Also some new method giving better results than
past but they are not effective all times. Such uncertainties can result in long lead time and other
management problems. [20]
Lee et al. (1997) studied that by moving through different phases the information in supply chain
destructed and this destruction make poor inventory management system, improper production
plan etc. This effect is known as bullwhip effect. There should be an effective information
sharing system in each business unit and with the customers. [21]
Srinivasan et al., (1994) studied that supply chain management should consist benefits of all
the participants involved .This can be bring out by proper data sharing and manage its all
participants. Different data sharing system like electronic data interchange system can bring
better and profitable results. [22]
Motwani et al., (2000) studied that all the organizations are seeking a better working procedure
to replace a poor one used. [23]
Movahedi and Kumar (2009) described different theories in a supply chain management. The
theories were Strategic choice theory, Agency theory, and Institutional theory, Network
perspective, Transaction cost theory and Knowledge-based view. These theories were
recommended by many experts in supply chain management. [24
Malhotra (2003) studied the transaction cost theory in their study and suggest that it can be an
important tool to develop the supply chain management process in a firm .This theory was
related to supply chain in term of monitor, problem, advantage and effort. [25]
Morash and Lynch (2002) studied the resource based investigation in supply chain management
and describe its importance in managing of supply chain. [26]

Ketchenand Hult (2004) studied the role of information base vision for data sharing as well as for
the improvement of supply chain .They also describes process to measure supply chain
effectiveness by resource based view in a cyclic time. [27]
Ketchen and Giunipero (2004) studied the importance of knowledge based view for the data
sharing process in a firm supply chain. They suggest the use of knowledge base view to make
effective supply chain management in different firms. One fault in their work was that they only
discus the importance of knowledge based view but not describe that how it can be smoothly
apply in an organizati. [28]
Gripsrud, Jahre and Persson (2006) studied the importance system theory in supply chain
management and its role in managing logistics. They describe that classical economic theory
have importance in 1970 period because at that time the totally focus was on cost reduction a
expand business worldwide. [29]
Weber (1996) applied Data envelopment analysis for a firm, only offer or produces a single
product and described that it can be a helpful tool for customers and supplier selection .He
studied different firms which produce deferent products and describe that it can help them in
managing the transportation cost in delivery of their products to end customer. [30]
Braglia and Petroni (2000) did eighty nine case studies to show mutual working benefits with the
help of data envelopment studies. They suggest different steps for the evaluation of customers.
[31]
Talluri (2002) conducted an evaluation study for the evaluation of supplier, manufacturer,
distributor and retailers with the help of four outputs and two input causes .A three phase
methodology was design for logistics supply. The best supplier was selected based on the
requirements. [32]
Saen (2006) study the Data envelopment analyses for evaluation of supplier. The scale was made
according to supplier performance and supplier selection was based on the quality and time to
deliver .The purpose of this research was to develop an effective supplier evaluation model base
on firms requirements. [33]
Talluri (2006) studied the data envelopment analysis for making effective tools to determine the
suppliers selection .He suggested that if you want to forecast your supplier selection you first of
all consider the variation that can occur in vendors behavior. He suggested that for forecast the

supplier performance vendor have great importance. He suggested that you can measure the
performance of your supplier by cost, quality and delivery. [34]
Kao(2010) studied the general weight Data envelopment analysis for determine the changing in
position and measured the distance from best or ideal. If case one has greater distance from ideal
then case two will be chose having great distance than anti ideal. [35]
Talluri and Narasimhan (2003) studied the changes of performance ability and its significance in
supply chain management. In their research the main focus was reduce cost and better delivery of
product. They suggested six models for supplier selection on the base of performance ability of
suppliers. [36]
Ghodsypour and OBrien (2001) worked for reducing the number of supplier and how quality
cost delivery can be reducing by choosing best supplier. Their research work was consisting on
single and multiple objectives for supplier selections. [37]
Karpak et al. (2001) suggested goal programming model to determine the supplier performance
with respect to quality, cost and delivery .The model was consisted on limited number of
products for controlling demand and supply limits. [38]
Narasimhan et al. (2006) suggested multi programming model for the selection of the supplier
and solve deferent problem of supplier selection with optimum order capacity. They also
suggested five criteria for supplier selection which are stipulate price, quality, maximum
available supply, minimum order size, and promised delivery performance level. [39]
Akarte et al. (2001) suggested eighteen criteria for supplier selection and divided them in groups
from which six were objective type and twelve were subjective type. He divided these groups on
the bases of quality capability, product development capability, cost and delivery. [40]
Chan (2010) recommend supplier selection problem model especially for fashion industry. The
article was mainly focused on quick response strategy studied by different organization process
of supply chain. The research was focused on two main criteria which are company policy and
performance criterion. Twenty nine criteria were discussed for performances measuring from
which ten was belonged to company policy. [41]
Choy and Lee (2002) suggested a general model from different cases studies of some
organizations. Their study was mainly focus on supply chain management and customer
relationship management for identification of suitable supplier with respect to quality, product

.service and distribution of product. The aim of this research was to reduce the different draw
back in supply chain management and to fulfill customers demands. [42]
Bayazit (2006) suggested describe a network base method for the selection of supplier on that
bases of interdependent relationship and feedback from supplier. They suggest ten selection
criteria for the selection of a suitable supplier based on supplier performance and ability. [43]
Mohapatra Sarkar and (2006) suggested a structured model to decreasing the number of supplier
and to managing supplier selection for choosing best supplier .They suggest that supplier can be
select on the basses of quality and performance. [44]
Ding et al. (2005) developed reproduction reduction for buyers to select better supplier that is
suitable for them according to their requirements. They offered an algorithm base methodology
which was consisted on an optimizing separation, event simulator, and supply chain molding
structure. [45]

CHAPTER 3
3.1 Methodology
To study the process of supply chain management in Pakistans knitwear industries, data was
collected from different knitwear industries. First of all, the current working conditions of supply
chain management in Pakistans knitwear industries were observed. After that supply chain
management suggestions were made by identifying the areas of improvement in these industries.
To achieve this goal the methodology can be dived in two major processes which are Understand
the current situation, identify the areas for improvement.
To understand the current working conditions of supply chain management process in Pakistan
knitwear industries a questionnaire was developed. The questionnaire was consisted on the
processes and requirements of supply chain management. The main target was to build a
questionnaire that provides all informations required to define the supply chain management. To
build the questionnaire first of all a deep study of supply chain management literature was done.
After it we visited two standard knitwear units to know the supply chain management process
and document required for supply chain management. It was helpful to build a questionnaire.
It took us four months to finalize the questionnaire. The questionnaire was fully close ended to
get information as easy as possible from the concern person in the industry. Secondly it make it
easy to apply statically tools and get results from the data .On the other hand if open ended
questionnaire is used then it can be boredom for the concerned person. There is chance that he
dont give proper information .It will also make it hard to get proper result from the data
obtained .So the questionnaire developed was fully close ended.
The questionnaire was developed with respect to four key elements process of supply chain
(Plan, Source, Make, Deliver).
The supply chain management process can be fully explain with the help of these steps .The
purpose of these steps was to get information from different organization experts who control the
supply chain management in industries. The primary data gained from this process come from
depth interviews which were conducted from different knitwear industries in Pakistan. Based on
the questionnaire a series of interviews were conducted from top management in different
knitwear industries to get the detailed informations of process like sourcing plan with constrains

10

and conditions ,making plan ,delivery method with constrains and condition ,return method with
constrains and condition and information technologies used.
For Identify the areas for improvement after analyzing the current situation used for supply
chain management in different knitwear industries in Pakistan, different weak areas in supply
chain process were observed. By mapping current working conditions and with the interview
results the areas which had problem were identified with the help of analyzing the interview
results.
Different weakness in supply chain management process were found in supply chain process like
poor production planning ,long sourcing time ,improper information sharing system, poor
relations with supplier and customer , absence of modern production and pattern making
techniques, uncertainty in lead time ,poor stocking policies etc.
3.2 Sample and procedure
Sample of this study has been taken from the firms of Pakistan especially in the knitwear
industry. For this purpose 21 firms was choose as a sample size. Employees of supply chain
management were the respondent of questionnaire and also the questionnaire was self-made and
total 28 questions were included in this questionnaire which was solved from respondents. Total
19 variables were used on the base of this research for completion of the research and to
implementation of this in the knitwear industry.For collecting data from the knitwear industries
we divided the industry with respect to setup they have. We collect data eight industries which
have the setup of garments only. Nine industries were those which have the setup of garments
and processing (dying) and four industries were those which have the setup of knitting garments
and processing.
3.3 Statistical methods
Following tools were used for data analysis of this study.
Pearson correlation
Descriptive Statistics
3.3.1 Pearson correlation
According to model test of measuring the variables is Pearson correlation for testing the
interdependency of variables in the models.
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3.3.2 Descriptive Statistics


For determine the average response and working conditions of knitwear industries.

12

CHAPTER 4
RESULTS AND DISCUSSIONS
There is some detail of data we collected from different industries in Pakistan based on the close ended questionnaire with respect and
the variables we used in the close ended questionnaire.
4.1 Pearson correlation:
Table 1: Correlation Table

Type
Source Time
Forecasting

1
-.376
-.160

Lead-time

-.290

Capacity Sharing
Communication
Prod Start Time

.092
.267
.256

1
.358
.471
*
.267
-.32*
.411*

1
.118

.278 .272
-.306 -.497*
.369 -.394*
Purchase Order Fabric .048 .441 .138
.358*
Monitoring System
.031 -.44* -.158
.359*
Use Modern Tools
.207 -.420 .028 -.432*
Bar Cod Inventory
-.005 .325 -.249 .217
Merchand responsibility .268 -.220 .024 576*
Supply Chain Matrices .398 -.355 -.302 -.373*
Stand Response Time
.353 .039 -.014 .417
Update time to customer -.178 .389 .270 -.511*

1
.200
.358

Uncertainty Face

-.032

.017

-.091 -.288

-.235 -.168

Document Uncertainty
Inventory Stock Policy

-.195
-.377

.223
.281

.405 .045
-.146 .050

-.020 -.403
-.169 -.182

1
-.119

-.010 -.149 .401* 1


-.285 -.197

.198

-.082
.145
.036
.053
.348
.208

-.42*
-.296
.482*
-.41*
-.036
-.101

-.047
.508*
-.039
.197
.023
-.451*

.382 1

-.485.
-.041
.204
.400
-.274
-.272
.202 .286
.719**
.261 .386 .217
-.083 .036 .050
-.106
.116
-.156
.401
.414
.106

1
-.416
.080
-.272
.036
.129

1
-.242
.241
.234
-.018

1
-.074 1
-.315 .351 1
-.080 -.328 .213

-.311 -.017 .284

.388

-.168 -.124

-.323 -.223 .066


-.033 -.186 .165

.070 -.130 -.018


-.076 -.182 .351

1
-.017 1
.255 -.091

N=21

13

Correlation is significant at 0.01 levels (2 tailed)


Correlation is significant at 0.05 levels (2 tailed)
Sourcing time is negative and not correlated with type of industry (-0.376) .A small industry can
have low sourcing time than a large one .It depends on the working standards of the industries.
Forecasting is negative and not correlated with type and sourcing time (-0.16 and 0.35). You
cannot say that in large firms or in small firms the forecasting is done properly. Every
organization used different forecasting methods than others. It depends on the firm working style
either it is a small or large unit. Different industries use different forecasting methods and it does
not consider the forecasting decision during sourcing. Lead time is negative and not correlated
with type of industries because lead time does not depends in the size of industry .It depends on
the effective working of the organization. So there are variations in lead time from one industry
to other. Lead time is positive and correlated with sourcing time (0.47*, p>0.05). This correlation
shows that firms which complete sourcing on time also take less lead time from its customer.
The firms can reduce their lead-time by reducing the sourcing time. Capacity sharing with
customer is positive and not correlated to type, sourcing time, forecasting and lead time (0.92,
0.26, 0.27, and 0.27). The data vary from one industry to other either it share its capacity with
customer or not or share it to in some extent. The only purpose of sharing capacity with
customer is to build a strong and trustable relation with customer. Communication with supplier
and customer is positive and not correlated with type of the industries and capacity sharing (0.26,
0.20).A large firm can have good communication then a small firm and a small firm can have
better communication system than a large one. Communication with suppliers and customers is
negative and correlated with sourcing time and lead time (-0.32*, 0.-49* p>0.05) which shows
that the firms which have e a good communication system have low sourcing time and lead time
due to proper information sharing with suppliers and customers. The starting time of production
is positive and correlated with sourcing time and lead time (0.41*, 0.39*). Later in sourcing more
time results in

later in staring the production and lead time will also be greater for a specific

order. Starting time of production is positive and not correlated with type, forecasting and
capacity sharing (0.25, 0.36, 0.35).Production starts depends on the working environment of
organization not on its size while forecasting methods and capacity sharing or not affect the
production starting time because they are change from one industry to other. Purchase order of
fabric manufacturing is positive and correlated with lead time and production start time (0.35*,
14

0.40* p>0.05).It shows that more late you purchase the fabric more will be the production start
time and lead time .Monitoring system is negatively correlated with sourcing time and lead time
(0.44*, 0.35* p>0.05) which shows that those industries which have a proper monitoring system
of supply chain has low sourcing and lead time. Monitoring system is negative and not correlated
with forecasting, capacity sharing and communication system (-0.15,-0.28,-0.19) which shows
that firms use monitoring system to make better their sourcing and lead time while forecasting,
capacity sharing and communication are same tools like monitoring system for a better supply
chain management. Use of modern production tools is negatively correlated with lead time and
production start time (-0.43**, -0 .42* p>0.05) which show that the firms in which the modern
production tools are used have less production start time and lead time. Use of modern
production tools is negative and not correlated with sourcing time, forecasting, communication
and fabric purchase order (-0.42,-0.02,-0.08,-0.48). Bar coding at inventory is positively
correlated with communication system used (0.50**, p>0.05) shows that then firms in which a
good bar coding system also is used there is also a good communication system. It can be seen
from the table that bar coding is not correlated with any other variable because the purpose of
barcoding is used for proper identification production material. Merchandising responsibilities is
negatively correlated with lead time and positively correlated with production start time
(0.576**, p>.001, 0.482*p>0.05) which indicate that by increasing the merchandiser
responsibilities the lead time is also increased. The reasons behind this are that by putting too
many responsibilities on a single man can be resulted in his poor performance. Supply chain
matrices is negatively correlated with lead time and production start time (-0.37*, -0.41* p>0.05)
which shows that the firms in which supply chain consume less time on production starting and
have low lead time. Update time to customer is negatively correlated with lead time and
positively correlated with communication system (-0.51*,0.45* p>0.05) which shows that the
firms which update their customer time by time have low lead time and a good communication
system. Uncertainty faced is negatively correlated with monitoring system (-0.79**, p>.001)
which indicate that by applying an effective monitoring system uncertainty can be reduce.

15

4.2 Descriptive Statics


Table 2: Descriptive Statics

Minimum

Maximum

Mean

Std. Deviation

Type

21

1.00

3.00

1.8095

.74960

Source Time

21

1.00

3.00

1.7619

.70034

Forecasting

21

1.00

3.00

1.8571

.65465

Lead Time

21

1.00

3.00

2.0952

.83095

Capacity Sharing

21

1.00

3.00

2.0476

.86465

Communication

21

1.00

3.00

2.2857

.78376

Prod. Start Time

21

1.00

3.00

2.2381

.76842

Purchas Order Fabric

21

1.00

3.00

2.1429

.79282

Monitoring System

21

1.00

3.00

2.0952

.83095

Use Modern Tools

21

1.00

3.00

2.0952

.76842

Bar Cod Inventory

21

1.00

3.00

2.2381

.70034

Merchand Responsibility 21

2.00

3.00

2.7143

.46291

Supply Chain Matrices

21

1.00

3.00

2.2381

.83095

Standard Response Time 21

1.00

3.00

2.2857

.78376

Update Time to Customer 21

1.00

3.00

2.2381

.76842

Uncertainty Face

21

1.00

3.00

2.4286

.59761

Document Uncertainty

21

1.00

3.00

2.2381

.70034

Inventory Stock Policy

21

1.00

3.00

2.1905

.74960

Valid N (list wise)

21

N=21
The overall response of respondents was different according to their independent variable. In
type of industries as its discussed in methodology the most of the industries of our research
sample had the setup of dying and garments and the mean value is (1.80).Its standard deviation
value is deviate from its mean is (.74). In sourcing me the most of the industries complete their
16

sourcing in 3-5 weeks from the order inquiry complete with mean value (1.76) and its standard
deviation deviate from its mean is (.70). This result shows that majority of industries have not
have effective sourcing process. In case of composite units lack of information sharing between
sourcing and manufacturing departments ,with supplier ,with business units while in case of
small units the economic issues ,relationships with supplier and the absence of system for
monitoring and following up purchasing order can be the cause of it. In forecasting, the most of
the industries done their forecasting monthly with mean value (1.85) and its standard deviation
deviate from its mean is (.65).In some industries forecasting is not done which is reason of their
poor supply chain management system. Forecasting make a firm ready for future orders and to
make best planning for future. So forecasting should be done properly after time by time. In lead
time the most of the industries have 60-90 day of an order lead time with mean value (2.09) and
its standard deviation deviate from its mean is (.83).Mostly the 60-90 days of lead time is used
for an order in Pakistan knitwear industries. The lead time of the industry is also varying from
one industry to other due to working policies, type of order, and the setup of the industry. In the
capacity sharing

with internal and external customer the most of the industries share their

capacity with supplier and customer to some extent with mean value(2.0) and the standard
deviation deviate from its mean is (.86).In this the external customer is the ultimate customer for
whom the industries make a product and he pay industries for it. The internal customer is every
next department with respect to operations insider the industries. For example cutting department
will be the internal customer of marker making department and stitching department will be the
internal customer of cutting department. The data shows that information on capacity is not
properly shared with customer and with different departments inside the organization which can
result poor connection with the customer high or low availability of product production material
and poor supply chain management system. In communication the most of the industries share
the information of raw material availability and master production schedules to some extent with
internal and external customer due to improper communication system used in the industries
with mean value (2.28) and the standard deviation deviate from its mean is (.78).This improper
information sharing of raw material availability and production schedules can results poor
relationship with supplier and customer .Once you lose the interest of customer by informing
wrongly to him about your material availability and production schedules and you cannot
arrange these according to your commitment with customer then it will cost you a lot in terms of
17

no orders for future. In production start time the in most of industries the production start after
3-5 weeks from the order inquiry completion with mean value (2.23) and the standard deviation
deviate from its mean is (.76). This results shows that the production staring time depends more
on the sourcing time as it can be seen in correlation table. The industries which complete their
sourcing early also start production early. The late of production starting can be due to miss
interaction between the marketing and production management between business units and due
to lack of information sharing between sourcing and manufacturing departments. In placing the
purchasing orders to the fabric manufacturers in most of the industries it takes 2 weeks. The miss
interaction between marketing and sourcing departments can be the cause of it. Placing the
purchasing orders to the fabric manufacturers is correlated with production start time and lead
time as it can be seen from correlation table. So fabric purchasing should be fast to manage the
lead time. In monitoring system for follow up of purchasing orders from internal and external
customers the most of industries use monitoring system for follow up of purchasing orders from
internal and external to some extent with mean value (2.09).The standard deviation deviate from
its mean is (.83).This result shows that the monitoring system for the follow up of purchasing
orders from internal and external customers is not properly applied in Pakistan knitwear
industries which can result a high or low sourcing of materialists and also the purchasing a bad
quality material for production. In use of modern tools for pattern making and other processes
e.g. CAD, ACCMUMARK the most of the industries use these tools to some extent with mean
value (2.09) and the standard deviation from its mean is (.76).This result shows that the modern
tools are not used properly in Pakistan knitwears industries and the patterns are made by pattern
master due to which a lot of time waste due to fault and changing in patterns. In bar coding the
inventory the most of the industries use bar coding system for inventory management to some
extent with mean value (2.23) and the standard deviation from its mean is (.70).This can result
different inventory management problems and time wastage issues during inventory
management. In merchandiser responsibilities the merchandiser responsibility is total order
monitoring in most of industries with mean value (2.71).The standard deviation deviate from its
mean is (.46).By putting too many responsibilities on a single man can be resulted in his poor
performance. In supply chain matrix the most of the industries have applied supply chain
matrices to some extent with mean value (2.23).The standard deviation deviate from its mean is
(.83).This result shows that the supply chain matrices are not properly applied in Pakistan
18

knitwear industries due to which to seeking for better supply chain management process is not
hoped and issues in supply chain management remains constant. In publishing the standard
response time to customers during order dealing the most of the industries use this practice to
some extent with mean value (2.28).The standard deviation deviate from its mean is (.78).During
order dealing with customer the standard response time should be offer to attract and satisfy the
customer because the ultimate goal of supply chain management is to satisfy your customer. In
update the customers with order delivery status time to time the most the industries update their
customers with order delivery status to some extent with mean value (2.23).The standard
deviation deviate from its mean is (.83). To be not in a position to fulfill the commitment of
order delivery which had done by the firm with his customer can be the reason behind it. In
uncertainty face in supply chain the most of the uncertainty is faced in supplier lead time with
mean value (2.42).The standard deviation deviate from its mean is (.59).Focus on too much
supplier ,poor supplier selection criteria, and economic issues can be the cause of it. In document
and track the uncertainties in supply chain in most of the industries documentation of these
uncertainties is done to some extent with mean value (2.23).The standard deviation deviate from
its mean is (.70).Due to absence of documentation and tracking the uncertainties the faults
remain stands for future orders. In inventory stocking the most if the industries use inventory
stocking policies to some extent with mean value (2.19).The standard deviation deviate from its
mean is (.74).Different industries have different inventory stocking policies depending upon the
requirements which have some advantages and also disadvantages in term of increasing or
decreasing inventory cost and availability.

19

4.3 Questionnaire
What kind of setup you have?
Garments only

How much time you require for sourcing


after order inquiry completes?
Is the customer also sent forecasts on
volumes and colors to the garment?

processing+
garment

Knitting
+processing+
garment

<3

3-5 weeks

>5

NA

Monthly

Yearly

How much total order Lead time mostly


you have?
Is the

information on capacity, are

shared with your internal and external Yes


customer?
Is the

information of raw material

availability shared with your internal and Yes


external customer?
Are the master production schedules
shared with your internal and external Yes
customer?
Do you share information between your
business units e.g. cutting, sewing?
After how many days of order inquiry
completion, you start production?

Yes

<3

To

some

extent

To

some

extent

To

some

extent
To

some

extent

No

No

No

No

3-5 weeks

>5

2 week

3 week

3-5 weeks

>5

After how many days of order inquiry


completion, you place purchasing orders 1 week
to the fabric manufacturers?
After how many days of order inquiry
completion, raw materials are available < 3
at the receiving store?
Is there any monitoring system for the Yes

To

some No
20

follow up of purchasing orders from

extent

internal and external customers?


Do you use electronic data interchange
system in your unit?
Is the software being used is accessible
to all the departments?
When the Production planning start?

To

Yes

extent
To

Yes

2 week

Do you have modern tool for pattern

To

making and other processes e.g. CAD, Yes

What

are

responsibilities

of

merchandisers in your organization?

and inventory costs during production Yes


planning?

control system your supplier use?


Have you arranged supply chain matrices
in your organization?
Do you publish your standard response
time to customers during order dealing?
Do you update your customers with
order delivery status time to time?

some

Marketing

Yes

Yes

Yes

Yes

No

No

No

+ Total

Sourcing

order

monitoring

fabric

After

arrival

Do you consider material transportation

Do you know what kind of inventory

some

extent

Marketing

The cutting and sewing production Before


planning starts?

To

Yes

No

3 week

extent

ACCMUMARK?

inventory control?

some

extent

1 week

Is there is any bar coding system for

some

fabric

arrival
To

some

extent
To

some

extent
To

some

extent
To

some

extent
To
extent

What kind of uncertainty you face in Demand

Supplier

supply chain?

time

Do you document and track these Yes

To

some

No

No

No

No

No

lead Manufacturing
process
some No

21

uncertainties in supply chain?


Have you inventoried stocking policies?

What do you prefer?

extent
Yes

To
extent

some

No

Internal

External

customers

customers

22

CHAPTER #5
5.1 Reasons behind the poor supply chain management process
The reasons of poor supply chain management system and long lead time of an order is varied
from one organization to other. Identification and correctness of the supply chain management
issues can bring an effective supply chain management process in these industries. Following are
some problems observed ion most of Pakistan knitwear Poor delivery, unhappy customers and
decreasing of sales
Long sourcing time
Poor production planning system
Improper information sharing system with supplier and customer
Ignorance of modern data interchange system
Ignorance from modern tools of production
Absence of documentation and track the uncertainties
Overly complicated business processes
Too much non-value added (NVA) activity
Poor quality
Too much inventory
Inadequate production planning
Poor relations with the supplier used
Poor performance measuring metrices
5.1.1 Long sourcing time
It was noted that a long sourcing time is taken in Pakistan apparel industries .The reason behind
is that there Very little sharing between different department in the unit. Too much supplier are
used and the main attention is given to order which are on production floor and newly coming
order are not taken seriously .The merchandiser deals with customer, involve in production ,as
well as sourcing at a time.

23

5.1.2 Poor production planning


Production department follows up the purchasing order till close to shipment date. The cutting
and production schedule are mostly started after fabric arrival. This is due to lack of information
sharing between sourcing and manufacturing departments. It take a lot of time for setting the
flow and line balancing and much of variation are done on production floor which take 1 weeks
or more. The lot of time for sample improving also effects the production planning.
5.1.3 Improper information sharing system with supplier and customer
It was noted that information on capacity are not properly shared with internal and external
customer who may result problems during production. The information about raw material
availability is not much shared with internal or external customer .The master production
schedule are shared to some extent due to which much of the problems are faced due to this lack
of information.
The EDI system is not in practice and software used in are not properly connected within each
department. Due to which a lot of time waste in information sharing process and much of the
informations are wasted in this way.
5.1.4 Ignorance from modern tools of production
The use of modern production tools like CAD and ACCUMARK is not in practice. The pattern
is made by pattern master due to which a lot of time waste due to fault and changing in pattern.
In this way much of time is waste in sampling approval due to variations then customer defined
product. Eton system is also is not much use due to which the operating time of operator also
increases due to poor delivery of production item from one operator to other.
5.1.5 Absence of documentation and track the uncertainties
Much of uncertainties are faced in supplier lead, manufacturing process and demands due to
disbandment and there is no system for document and track these uncertainties. The faults and
weakness in manufacturing process remain continue for next order. There is no focus on to
improve the system and quality and much focused is done on the production increasing due it
ignorance of modern quality rules and theory.

24

5.1.6 Complexity of business process


It was noted that the business process used in Pakistan knitwear industries is very complicated.
The system of managing the sales, managing the materials for production and sharing
information between business unit and with related department ,production scheduling are much
complex results ion poor supply chain management and lead

time performance. Each

department should have easily access tom all the material and conformation they required.
5.1.7 Too much Use of non-value added actives
It was noted that to m uses time is wanted in the supply of inventory, storing the inventories and
also in rework which result on long lead time and create poor supply chain. This loss the
customer trust and also ends on a bad quality product. A pattern is made and rejected very time
due to absence of modern pattern making tools which also trend to a longer lead time.
5.1.8 Bad quality from supplier
It was noted that much of problems in supply chain management are faced due to bad quality
from supplier. Supplier evaluation programmer is in practice. Multiple supplier are used for
sourcing of raw material and supplier selection criteria are not well defined which lead to b ad
quality material from supplier.
Too much time spend on fixing flaws, recycling waste, handling complaints and trying to
customers from going to your competitors. Perfect quality products and information should be
very high priority for manufacturers because it results in lower costs and higher customer
satisfaction.
5.1.9 Huge inventory
It was noted that too much inventories are used in Pakistan knitwear industries. There is no
system for barcoding at inventory .Most of the industries have a large inventory storage room
.the inventory in these room are not all used .One of the concern person at inventory room told
that every years excessive inventory is sold in a huge amount which effect badly a company cost
and performance .

25

5.1.10 Inadequate Production scheduling


It was noted that poor production scheduling is much in practice .The material arrangement for
production and setting of production floor take a lot of time due to mismanagement between
purchasing and production department and changing in production floor day by day. Mostly the
production planning is start after the fabric arrival which also contributes in longer lead-time.
5.1.11 Poor relations with the supplier
One of major issue in supply chain management of Pakistan knitwear industry is that there is no
importance given with the relationship with supplier .The suppliers are changed from time by
time by saving cost. It leads to poor relations with supplier and there is no consistency in in
quality from supplier items during production a lot of time is wasted due to raw material
problems which make poor sully chain to manage an order lead time.
5.1.12 Poor performance measure system
It was observed that the performance measure is based mostly on increase production rate. The
quality given procedure has not much importance due to which poor quality products are much
in practice. There is lot of fault during production and a lot of time wasted during the corrective
of these faults .This disturb the sequence of production processes and increase the supply chain
issues and lead time.

26

Conclusion
In this research we concluded that in most of Pakistan knitwear industries the supply chain
management system is not much effective. There need much of improvements in sourcing time,
production start time ,forecasting system, communication system, use of modern tools ,reducing
and tracking uncertainties, monitoring system and in inventory management system. An effective
supply chain management system and better lead time management can be developed through,
reduction in sourcing time of all type of production material, better use of

modern tools,

effective forecasting system, monitoring system, inventory management and communication


system.

27

Limitations
No doubt we are successful to define many variables of supply chain management and their
effect on each other and ultimate on supply chain management. But there are some limitations in
our research work. In our research work we could not show the correlation between some of the
variables we used in our research work to study the supply chain management process.
In Our research was we took a sample size of 21 knitwear industries in Pakistan. Due to this
limited sample size we could not find more effective statically results. Large the sample size you
use more confident you are about results.
There are some reasons behind this limited sample size. The biggest reason was that the
industries were not willing to provide us their working data of supply chain management. To get
data from 21 industries it took much of time and working in satisfying the industries that this
data will be only use for academic purposes and there will be no leakage of data.
Recommendation letters were made from the university to the industries human response
department. The human response department not responds us quickly saying that we will inform
you after concerning with top management. Many industries after concerning top management
reply us that they cannot allow us for taking such type of data. We have not enough references
to visit the knitwear industry in Faisalabad and Lahore. So we are limited to visit the industries.
Secondly the industries which respond us in our sample size are from Faisalabad and some from
Lahore. We could not access to Karachi where there is huge setup of knitwear industries due to
large distance and unavailability of references and funds. There is a chance that the employ who
filled the questionnaire some of them can be out liars and some of them not filled the
questionnaire with serious behavior.

28

Future work
More work can be done on supply chain management in Pakistan knitwear industry in future by
studying more variables of supply chain management and taking a large sample size.

29

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