Supplier Selection and Evaluation Using Multicriteria Decision Analysis

The selection and evaluation of suppliers is a very sensitive and crucial process for all companies and organizations, since the quality of the overall supplier management system may affect the quality of the final product. Suppliers nowadays are considered as partners of any business organization having mutual trust as the core of the relationship with them. In contrast to traditional approaches for selecting/evaluating a supplier, which are mainly based on cost, neglecting other important factors, new research efforts have highlighted the importance of multicriteria decision analysis in this problem. The aim of this paper is to propose an integrated framework for supplier selection and evaluation giving emphasis on the dynamic nature of the problem. The proposed framework is based on the UTA-II method, which is a preference disaggregation approach from the field of multicriteria decision analysis, and its applicability is demonstrated through a real-world application in a food company. The major results of the case study show the importance of quality, cost, delivery, and collaboration in the relationship between companies and suppliers.