Supplier evaluation and management system for strategic sourcing based on a new multicriteria sorting procedure

Araz C., Ozkarahan I.

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS, vol.106, no.2, pp.585-606, 2007 (SCI-Expanded) identifier identifier

  • Publication Type: Article / Article
  • Volume: 106 Issue: 2
  • Publication Date: 2007
  • Doi Number: 10.1016/j.ijpe.2006.08.008
  • Journal Name: INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Page Numbers: pp.585-606
  • Keywords: supplier selection and evaluation, product development, multicriteria sorting, ANALYTIC HIERARCHY PROCESS, DECISION-SUPPORT-SYSTEM, VENDOR SELECTION, PRODUCT DEVELOPMENT, PROMETHEE METHOD, CRITERIA, TOOL, REPRESENTATIONS, CLASSIFICATION, METHODOLOGY
  • Dokuz Eylül University Affiliated: No

Abstract

Supplier selection and evaluation is increasingly seen as a strategic issue for companies. Unlike the past, an emerging trend is to select suppliers where a long-term relationship is desired and supplier involvement in product development is required and to sort suppliers into categories based oil performances. This paper describes a supplier evaluation and management methodology for strategic sourcing, in which suppliers are assessed considering supplier's co-design capabilities and categorized based oil overall performances, potential reasons for differences in performance of supplier groups are identified, and performances of the suppliers are improved by applying supplier development programs. A new multicriteria sorting method based oil the PROMETHEE methodology is also introduced. By means of a strategic supplier selection example, we demonstrate that out, methodology is a flexible and responsive decision-making tool for assessing strategic suppliers. (c) 2006 Elsevier B.V. All rights reserved.