AN INTEGRATED STRATEGIC APPROACH TO SUPPLIER EVALUATION AND SELECTION

Reza Khorramshahgol ()
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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

International Journal of Information Technology & Decision Making (IJITDM), 2012, vol. 11, issue 01, 55-76

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.

Keywords: Goal programming (GP); analytic hierarchy process (AHP); supply chain management (SCM); supplier selection (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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DOI: 10.1142/S0219622012500034

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