Multi-Criteria Decision-Making Methods for Supplier Selection: A Literature Review

Abstract

A firm's multi-criteria decision-making (MCDM) process is important because of its need to select and work with various suppliers. The process identifies the problems associated with selecting the supplier, , determining convenient criteria, expressing interactions clearly, and usage. These are all suitable methods for finding a solution to these MCDM problems.Considering more than one criterion (and even the sub-criteria of these criteria) during supplier selection makes the selection uncertain. Conventional methods cannot generate a realistic solution to the problem. Using MCDM methods considerably simplifies solving the problem, and enables decision-makers to make better decisions. In this study, a literature review was performed on MCDM methods used between 2001 and 2014 for the supplier selection problem. MCDM methods used in supplier selection are categorised into three main methods, and a summary table of the reviewed studies is presented. OPSOMMING'n Firma se multi-maatstaf besluitnemingsproses is belangrik as gevolg van die behoefte om verskeie verskaffers te kies en dan mee saam te werk. Die proses identifiseer die probleme geassosieer met die kies van die verskaffer, die bepaling van gerieflike kriteria, en wat die duidelike uitdruk van interaksies en die gebruik daarvan, insluit. Hierdie is almal gepaste metodes vir die vind van 'n oplossing tot hierdie multi-maatstaf besluitnemingsproses probleme.Die oorweging van meer as een maatstaf (en selfs die sub-maatstawwe van hierdie maatstaf) tydens verskaffer seleksie maak die seleksie onseker. Tradisionele metodes kan nie 'n realistiese oplossing tot die probleem genereer nie. Deur van multi-maatstaf besluitnemingsprosesmetodes gerbuik te maak word die oplos van die probleem aansienlik vereenvoudig en dit stel besluitnemers in staat om die beter besluite te neem. 'n Literatuurstudie is gedoen op multi-maatstaf besluitnemingsprosesmetodes gebruik vir die verskaffer seleksie probleem van 2001 tot 2014. Die metodes word in drie afdelings verdeel en 'n opsommende tabel van die studies word voorgehou.

Supplier Performance Management in Context of Size and Sector Characteristics of Enterprises

“…Kar (2014) pointed out that with the increased complexity more qualitative criteria are popular. Recent studies (Yildiz and Yayla, 2015) show that quality, delivery, cost, price and service were the most important supplier selection criteria. According Mwadulo and Munialo (2019), criteria of selecting suppliers changed over time, but some of the criteria such as cost, quality and delivery performance remain important.…”

Maintenance Supplier Evaluation and Selection for Safe and Sustainable Production in the Chemical Industry: A Case Study

“…Nazarishirkouhi et al [14][15][16] constructed the general criteria for supplier selection, and selected the hypothetical suppliers without mentioning specific industries. Yildiz and Yayla [9] concluded from 91 studies on supplier selection problems between 2001 and 2014 that the major industries involved in supplier selection are electrical-electronics, automotive, furniture-white goods, agriculture-construction, transportation-logistics, and textile industry. Most researches on supplier selection were mainly concerned about general manufacturing industries such as automobile, furniture, and textile.…”

An Artificial Intelligence and Knowledge-Based System to Support the Decision- Making Process in Sales

“…Explicit knowledge is already known to all. Considering more than one criterion (and even its sub-criteria) during decision-making makes the decision uncertain [24]. Therefore, what is sought with knowledge-based systems is the transformation of knowledge from tacit to explicit.…”