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Mathematical Problems in Engineering
Volume 2014, Article ID 390878, 8 pages
Research Article

Explore the Most Potential Supplier’s Selection Determinants in Modern Supply Chain Management

1Department of International Business, National Taichung University of Education, Taichung 403, Taiwan
2Department of Insurance, Chao-Yang University of Technology, Taichung 413, Taiwan
3Department of Leisure Recreation, National Formosa University, Yunlin County 632, Taiwan
4Department of Finance & Risk Management, Ling-Tung University, Taichung 408, Taiwan

Received 14 June 2014; Accepted 31 July 2014; Published 28 August 2014

Academic Editor: Teen-Hang Meen

Copyright © 2014 Ming-Yuan Hsieh et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.


To increment the research reliability, validity, and representativeness, this study creatively cross-employed the factor analysis (FA) and the grey relational analysis (GRA) methods. The results of the 144 fully completed questionnaires are analyzed by FA and then these results were utilized in second questionnaires design of 15 experts. Furthermore, the results of these second questionnaires were further analyzed by GRA in order to explore the most potential supplier’s selection determinants in the modern supply chain management (MSCM). Beyond a series of measurements, the measured results have induced three contributive findings: (1) the empirical interviewed industrialists reported concern that suppliers have to provide a higher material yield rate and material delivery on time rate for the qualitative increment as well as a higher supplier’s gross margin ROI for the financial stabilization in MSCM; (2) the 15 experts concluded that material insurance rate is an important attribute to estimate risky assessments and the supplier’s gross margin ROI and warehouse operations cost as a percentage of sales are critical elements in the financial evaluations of potential suppliers; and (3) Supplier’s gross margin ROI, outbound freight cost as a percentage of sales, and material insurance rate are the three most decisive determinants in MSCM.