Supplier evaluation and selection problem has been studied extensively. Various decision making approaches have been proposed to tackle the problem. In contemporary supply chain management, the performance of potential suppliers is evaluated against multiple criteria rather than considering a single factor-cost. This paper reviews the literature of the multi-criteria decision making approaches for supplier evaluation and selection. Related articles appearing in the international journals from 2000 to 2008 are gathered and analyzed so that the following three questions can be answered: (i) Which approaches were prevalently applied? (ii) Which evaluating criteria were paid more attention to? (iii) Is there any inadequacy of the approaches? Based on the inadequacy, if any, some improvements and possible future work are recommended. This research not only provides evidence that the multi-criteria decision making approaches are better than the traditional cost-based approach, but also aids the researchers and decision makers in applying the approaches effectively.
In the most recent literature review, REF presented a categorization of the multi-criteria decision-making approaches for the supplier evaluation and selection processes, and provided also evidence that the multicriteria decision-making models are better than the traditional cost-based ones.
Multi-criteria decision making approaches for supplier evaluation and selection: A literature review
Eur. J. Oper. Res.
Eur. J. Oper. Res.
Computer Science Mathematics