Supplier Classification Using UTADIS Method Based on Performance Criteria

Elham Dehghan Manshadi, Mohamad Reza Mehregan and Hossein Safari

International Journal of Academic Research in Business and Social Sciences, 2015, vol. 5, issue 2, 31-45

Abstract: Supplier selection process has gained importance recently, since the cost of raw materials and component parts constitutes the main cost of a product and most of the firms have to spend considerable amount of their revenues on purchasing. Although many methods have been proposed and used for supplier evaluation and selection, most of them try to rank the suppliers from the best to the worst or to choose the best supplier among others. This study focuses on supplier evaluation and selection from the point of a new perspective based on UTADIS. In this paper, auther presents a UTADIS model for suppliers?classification based on performance criterias in SAPCO company. Auther uses the information about suppliers?performance score along all criteria in SAPCO company, for categorizing the suppliers into three groups A, B and C via calculating marginal and global utilities function.

Keywords: Global Utility; Marginal Utility; Suppliers Classification; UTADIS Model and Utility Thresholds (search for similar items in EconPapers)
Date: 2015
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:hur:ijarbs:v:5:y:2015:i:2:p:31-45

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