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An Integrated Strategic Approach To Supplier Evaluation And Selection

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  • REZA KHORRAMSHAHGOL

    (Department of Quantitative Methods and Information Systems, College of Business Administration, Kuwait University, P. O. Box 5486, Safat 13055, Kuwait)

Abstract

This paper, using goal programming (GP) and the analytic hierarchy process (AHP), proposes an integrated methodology to aid decision makers in (1) evaluating, screening and selecting best suppliers from among an exhaustive list of available suppliers and (2) determining the amount to be purchased from the selected suppliers. Along the supply chain, the suppliers, by being situated at the upstream of the chain, play a crucial role in successful management of the entire (subsequent) members of the chain and can have a significant impact on the efficiency and effectiveness of the activities of the rest of the chain, and ultimately, on the delivery of the desired products/services. Thus supplier selection can certainly contribute greatly to a firm's competitive advantage and its organizational success. This study suggests a screening and evaluation method, named supplier priority index matrix, to eliminate the least qualified suppliers and to choose the most promising ones. The remaining potential suppliers are evaluated and the best are selected from among them. Finally the AHP and GP are used to allocate the firm's total supplies among the chosen/selected suppliers.

Suggested Citation

  • Reza Khorramshahgol, 2012. "An Integrated Strategic Approach To Supplier Evaluation And Selection," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 11(01), pages 55-76.
    • Handle: RePEc:wsi:ijitdm:v:11:y:2012:i:01:n:s0219622012500034
    DOI: 10.1142/S0219622012500034
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    References listed on IDEAS

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    1. Dylan Jones & Mehrdad Tamiz, 2010. "Practical Goal Programming," International Series in Operations Research and Management Science, Springer, edition 1, number 978-1-4419-5771-9, December.
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    Cited by:

    1. Wetzstein, Anton & Hartmann, Evi & Benton jr., W.C. & Hohenstein, Nils-Ole, 2016. "A systematic assessment of supplier selection literature – State-of-the-art and future scope," International Journal of Production Economics, Elsevier, vol. 182(C), pages 304-323.

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