Supplier Selection Criteria and Methods in Supply Chains: A Review
An effective supplier selection process is very important to the success of any manufacturing organization. The main objective of supplier selection process is to reduce purchase risk, maximize overall value to the purchaser, and develop closeness and long-term relationships between buyers and suppliers in today’s competitive industrial scenario. The literature on supplier selection criteria and methods is full of various analytical and heuristic approaches. Some researchers have developed hybrid models by combining more than one type of selection methods. It is felt that supplier selection criteria and method is still a critical issue for the manufacturing industries therefore in the present paper the literature has been thoroughly reviewed and critically analyzed to address the issue.
[1] Weber, C. A., Current, J. R. and Benton, W. C., “Vendor Selection
Criteria and Methods”, European Journal of Operational Research, 50
(1991) 2-18.
[2] Degraeve, Z., Labro, E., Roodhooft, F., “An evaluation of supplier
selection methods from a Total Cost of Ownership perspective”
European Journal of Operational Research 125, 1(2000) 34-59.
[3] Chen-Tung, C. and Ching-Torng, L., “A fuzzy approach for supplier
evaluation and selection in supply chain management”, Production
Economics, 102 (2006) 289–301.
[4] Lewis, H.T., Industrial purchasing principles and practices. Chicago:
Richard D. Irwin (1943).
[5] Zeng, A.Z., “Single or multiple sourcing: an integrated optimization
framework for sustaining time-based competitiveness”, Journal of
Marketing Theory and Practice, 6(1998) 10-21.
[6] Aissaoui, N., M. Haouari and E. Hassini, “Supplier selection and order
lot sizing modeling: A review”, Computers & Operations Research, 34
(2007) 3516-3540.
[7] Tahriri, F., Osman, M.R., Ali,A. and Yusuff, R.M., “A review of
supplier selection methods in manufacturing industries”, Suranaree J.
Sci. Technol., 15(3)( 2008) 201-208.
[8] Burton, T.T. "JIT/repetitive sourcing strategies: Tying the knot with
your suppliers", Production and Inventory Management Journal (1988)
38-41.
[9] Abratt, R., “Industrial buying in high-tech markets”, Industrial
Marketing Management, 15(4) (1986) 293-298.
[10] Sharland, A., Eltantawy, R. A. and Giunipero, L. C., “The impact of
cycle time on supplier selection and subsequent performance outcomes”,
Journal of Supply Chain Management: A Global Review of Purchasing
and Supply, 39(3) (2003).
[11] Lin, C., Chow, W. S., Madu, C. N., Kuei, C.-H. and Yu, P. P. , “A
structural equation model of supply chain quality management and
organizational performance”, International Journal of Production
Economics, 96(3) (2005) 355-365.
[12] Gonzalez, M. E., Quesada, G. and Monge, C. A. M., “Determining the
importance of the supplier selection process in manufacturing: a case
study”, International Journal of Physical Distribution & Logistics
Management, 34(6) (2004) 492-504.
[13] Humphreys, P. K., Wong, Y. K. and Chan, F. T. S., “Integrating
environmental criteria into the supplier selection process”, Journal of
Materials Processing Technology, 138(1-3) (2003) 349-356.
[14] Yan, H. and Wei, Q., “Determining compromise weights for group
decision making”, Journal of the Operational Research Society, 53(6)
(2002) 680-687.
[15] Svensson, G., “Supplier segmentation in the automotive industry: A
dyadic approach of a managerial model”, International Journal of
Physical Distribution & Logistics Management, 34(1/2) (2004) 12-38.
[16] Lee, E.K., Ha, S. and Kim, S.K., “Supplier Selection and Management
System Considering Relationships in Supply Chain Management”, IEEE
Transactions on Engineering Management, 47(4) (2001) 307-318.
[17] Pearson, J. M. and Ellram, L. M., “Supplier selection and evaluation in
small versus large electronics firms”, Journal of Small Business
Management, 33(4) (1995) 53-65.
[18] Verma, R. and Pullman, M. E., “An Analysis of the Supplier Selection
Process”, OMEGA- International Journal of Management Science, 26(6)
(1998) 739-750.
[19] Dulmin, R. and Mininno, V., “Supplier selection using a multi-criteria
decision aid method”, Journal of Purchasing and Supply Management,
9(4) (2003) 177-187.
[20] Monczka, R. M. and Trent, R. J., “Cross-Functional Sourcing Team
Effectiveness”, Tempe, AZ: Center for Advanced Purchasing Studies,
(1993).
[21] De Boer, L., Van der Wegen, L., Telgen, J., “Outranking methods in
support of supplier selection”, European Journal of Purchasing and
Supply Management 4 (2/3) (1998) 109-118.
[22] Weber, C.A., Current, J.R., Benton, W.C. “Vendor selection criteria and
methods,” European Journal of Operational Research, 50(1991) 2-18.
[23] Li, C.C. and Fun, Y.P., “A new measure for supplier performance
evaluation”, IIE Transactions, 29(1) (1997) 753-758.
[24] Weber, C.A., Current, J.R., Desai, A., “Non-cooperative negotiation
strategies for vendor selection”, European Journal of Operational
Research 108 (1998) 208-223.
[25] Weber, C.A., Desai, A., “Determination of paths to vendor market
efficiency using parallel co-ordinates representation: a negotiation tool
for buyers”, European Journal of Operational Research 90(1996) 142-
155.
[26] Weber, C.A., Ellram, L.M., “Supplier selection using multi-objective
programming: a decision support system approach”, International
Journal of Physical Distribution& Logistics Management 23 (2) (1992)
3-14.
[27] Hinkle, C.L., Robinson, P. J., Green, P. E., “Vendor evaluation using
cluster analysis”, Journal of Purchasing 5 (3) (1969) 49-58.
[28] Maggie C.Y.T. and Tummala, V.M.R. “An application of the AHP in
vendor selection of a telecommunications system”, Omega, 29 (2001)
171-182.
[29] Hill, R.P. and Nydick, R.L., “Using the Analytic Hierarchy Process to
structure the supplier selection procedure”, International Journal of
Purchasing and Materials Management 28 (2) (1992) 31-36.
[30] Liu, F.H.F. and Hai, H.L., “The voting analytic hierarchy process
method for selecting supplier”, Int. J. Prod. & Economics 97 (3) (2005)
308-317.
[31] Saaty, T. L., "Decision Making with Dependence and Feedback: The
Analytic Network Process", RWS Publications, Pittsburgh, P.A. (1996).
[32] Saaty, T. L., “Fundamentals of Analytical Process”, ISAHP 1999, Kobe,
Japan, Aug 12 – 14, 1999.
[33] Ellram, Lisa M. “Total Cost of Ownership: An analysis approach for
purchasing” International Journal of Physical Distribution & Logistics
Management. 25(8) (1995) 4-23.
[34] Elanchezhian, C., Vijaya Ramnath, B., and Dr. R. Kesavan, “Vendor
Evaluation Using Multi Criteria Decision Making”, International Journal
of Computer Applications 5 (9) (2010) 0975 – 8887.
[35] Min, H. “International Supplier Selection: a Multi-attribute Utility
Approach," International Journal of Physical Distribution & Logistics
Management, 24(5) (1994) 24-33.
[36] Bross, M.E. and Zhao, G. “Supplier selection process in emerging
markets - The Case Study of Volvo Bus Corporation in China”, School
of Economics and Commercial Law Göteborg University (2004).
[37] Degraeve, Z. and F. Roodhoft “Effectively Selecting Suppliers Using
Total Cost of Ownership," Journal of Supply Chain Management, 35(1)
(1999) 5-10.
[38] Ghodsypour S. H., O’Brian C. “A decision support system for supplier
selection using an integrated analytic hierarchy approach and linear
programming”, Int. J. Prod. Econ., 56/57(1998) 199-212.
[39] Sanayei, A., Mousavi, S.F. Abdi, M.R. and Mohaghar, A., “An
integrated group decision-making process for supplier selection and
order allocation using multi-attribute utility theory and linear
programming”, Journal of the Franklin Institute, 345(2008) 731-747.
[40] Shyur, H.J. and Shih, H.S., “A hybrid MCDM model for strategic
vendor selection”, Mathematical and Computer Modeling, 44(2006)
749-761.
[41] Boran, F.E., Genc, S., Kurt, M. and Akay, D., “A multi-criteria
intuitionistic fuzzy group decision making for supplier selection with
TOPSIS method”, Expert Systems with Applications, 36 (2009) 11363-
11368.
[42] Kuo, R. J., Wang, Y. C. and Tien, F. C., “Integration of artificial neural
network and MADA methods for green supplier selection”, Journal of
Cleaner Production, 18(12)(2010), 1161–1170.
[43] Faez, F., Ghodsypour, S. H. and O’Brien, C., “Vendor selection and
order allocation using an integrated fuzzy case-based reasoning and
mathematical programming model”, International Journal of Production
Economics, 121(2)(2009), 395-408.
[1] Weber, C. A., Current, J. R. and Benton, W. C., “Vendor Selection
Criteria and Methods”, European Journal of Operational Research, 50
(1991) 2-18.
[2] Degraeve, Z., Labro, E., Roodhooft, F., “An evaluation of supplier
selection methods from a Total Cost of Ownership perspective”
European Journal of Operational Research 125, 1(2000) 34-59.
[3] Chen-Tung, C. and Ching-Torng, L., “A fuzzy approach for supplier
evaluation and selection in supply chain management”, Production
Economics, 102 (2006) 289–301.
[4] Lewis, H.T., Industrial purchasing principles and practices. Chicago:
Richard D. Irwin (1943).
[5] Zeng, A.Z., “Single or multiple sourcing: an integrated optimization
framework for sustaining time-based competitiveness”, Journal of
Marketing Theory and Practice, 6(1998) 10-21.
[6] Aissaoui, N., M. Haouari and E. Hassini, “Supplier selection and order
lot sizing modeling: A review”, Computers & Operations Research, 34
(2007) 3516-3540.
[7] Tahriri, F., Osman, M.R., Ali,A. and Yusuff, R.M., “A review of
supplier selection methods in manufacturing industries”, Suranaree J.
Sci. Technol., 15(3)( 2008) 201-208.
[8] Burton, T.T. "JIT/repetitive sourcing strategies: Tying the knot with
your suppliers", Production and Inventory Management Journal (1988)
38-41.
[9] Abratt, R., “Industrial buying in high-tech markets”, Industrial
Marketing Management, 15(4) (1986) 293-298.
[10] Sharland, A., Eltantawy, R. A. and Giunipero, L. C., “The impact of
cycle time on supplier selection and subsequent performance outcomes”,
Journal of Supply Chain Management: A Global Review of Purchasing
and Supply, 39(3) (2003).
[11] Lin, C., Chow, W. S., Madu, C. N., Kuei, C.-H. and Yu, P. P. , “A
structural equation model of supply chain quality management and
organizational performance”, International Journal of Production
Economics, 96(3) (2005) 355-365.
[12] Gonzalez, M. E., Quesada, G. and Monge, C. A. M., “Determining the
importance of the supplier selection process in manufacturing: a case
study”, International Journal of Physical Distribution & Logistics
Management, 34(6) (2004) 492-504.
[13] Humphreys, P. K., Wong, Y. K. and Chan, F. T. S., “Integrating
environmental criteria into the supplier selection process”, Journal of
Materials Processing Technology, 138(1-3) (2003) 349-356.
[14] Yan, H. and Wei, Q., “Determining compromise weights for group
decision making”, Journal of the Operational Research Society, 53(6)
(2002) 680-687.
[15] Svensson, G., “Supplier segmentation in the automotive industry: A
dyadic approach of a managerial model”, International Journal of
Physical Distribution & Logistics Management, 34(1/2) (2004) 12-38.
[16] Lee, E.K., Ha, S. and Kim, S.K., “Supplier Selection and Management
System Considering Relationships in Supply Chain Management”, IEEE
Transactions on Engineering Management, 47(4) (2001) 307-318.
[17] Pearson, J. M. and Ellram, L. M., “Supplier selection and evaluation in
small versus large electronics firms”, Journal of Small Business
Management, 33(4) (1995) 53-65.
[18] Verma, R. and Pullman, M. E., “An Analysis of the Supplier Selection
Process”, OMEGA- International Journal of Management Science, 26(6)
(1998) 739-750.
[19] Dulmin, R. and Mininno, V., “Supplier selection using a multi-criteria
decision aid method”, Journal of Purchasing and Supply Management,
9(4) (2003) 177-187.
[20] Monczka, R. M. and Trent, R. J., “Cross-Functional Sourcing Team
Effectiveness”, Tempe, AZ: Center for Advanced Purchasing Studies,
(1993).
[21] De Boer, L., Van der Wegen, L., Telgen, J., “Outranking methods in
support of supplier selection”, European Journal of Purchasing and
Supply Management 4 (2/3) (1998) 109-118.
[22] Weber, C.A., Current, J.R., Benton, W.C. “Vendor selection criteria and
methods,” European Journal of Operational Research, 50(1991) 2-18.
[23] Li, C.C. and Fun, Y.P., “A new measure for supplier performance
evaluation”, IIE Transactions, 29(1) (1997) 753-758.
[24] Weber, C.A., Current, J.R., Desai, A., “Non-cooperative negotiation
strategies for vendor selection”, European Journal of Operational
Research 108 (1998) 208-223.
[25] Weber, C.A., Desai, A., “Determination of paths to vendor market
efficiency using parallel co-ordinates representation: a negotiation tool
for buyers”, European Journal of Operational Research 90(1996) 142-
155.
[26] Weber, C.A., Ellram, L.M., “Supplier selection using multi-objective
programming: a decision support system approach”, International
Journal of Physical Distribution& Logistics Management 23 (2) (1992)
3-14.
[27] Hinkle, C.L., Robinson, P. J., Green, P. E., “Vendor evaluation using
cluster analysis”, Journal of Purchasing 5 (3) (1969) 49-58.
[28] Maggie C.Y.T. and Tummala, V.M.R. “An application of the AHP in
vendor selection of a telecommunications system”, Omega, 29 (2001)
171-182.
[29] Hill, R.P. and Nydick, R.L., “Using the Analytic Hierarchy Process to
structure the supplier selection procedure”, International Journal of
Purchasing and Materials Management 28 (2) (1992) 31-36.
[30] Liu, F.H.F. and Hai, H.L., “The voting analytic hierarchy process
method for selecting supplier”, Int. J. Prod. & Economics 97 (3) (2005)
308-317.
[31] Saaty, T. L., "Decision Making with Dependence and Feedback: The
Analytic Network Process", RWS Publications, Pittsburgh, P.A. (1996).
[32] Saaty, T. L., “Fundamentals of Analytical Process”, ISAHP 1999, Kobe,
Japan, Aug 12 – 14, 1999.
[33] Ellram, Lisa M. “Total Cost of Ownership: An analysis approach for
purchasing” International Journal of Physical Distribution & Logistics
Management. 25(8) (1995) 4-23.
[34] Elanchezhian, C., Vijaya Ramnath, B., and Dr. R. Kesavan, “Vendor
Evaluation Using Multi Criteria Decision Making”, International Journal
of Computer Applications 5 (9) (2010) 0975 – 8887.
[35] Min, H. “International Supplier Selection: a Multi-attribute Utility
Approach," International Journal of Physical Distribution & Logistics
Management, 24(5) (1994) 24-33.
[36] Bross, M.E. and Zhao, G. “Supplier selection process in emerging
markets - The Case Study of Volvo Bus Corporation in China”, School
of Economics and Commercial Law Göteborg University (2004).
[37] Degraeve, Z. and F. Roodhoft “Effectively Selecting Suppliers Using
Total Cost of Ownership," Journal of Supply Chain Management, 35(1)
(1999) 5-10.
[38] Ghodsypour S. H., O’Brian C. “A decision support system for supplier
selection using an integrated analytic hierarchy approach and linear
programming”, Int. J. Prod. Econ., 56/57(1998) 199-212.
[39] Sanayei, A., Mousavi, S.F. Abdi, M.R. and Mohaghar, A., “An
integrated group decision-making process for supplier selection and
order allocation using multi-attribute utility theory and linear
programming”, Journal of the Franklin Institute, 345(2008) 731-747.
[40] Shyur, H.J. and Shih, H.S., “A hybrid MCDM model for strategic
vendor selection”, Mathematical and Computer Modeling, 44(2006)
749-761.
[41] Boran, F.E., Genc, S., Kurt, M. and Akay, D., “A multi-criteria
intuitionistic fuzzy group decision making for supplier selection with
TOPSIS method”, Expert Systems with Applications, 36 (2009) 11363-
11368.
[42] Kuo, R. J., Wang, Y. C. and Tien, F. C., “Integration of artificial neural
network and MADA methods for green supplier selection”, Journal of
Cleaner Production, 18(12)(2010), 1161–1170.
[43] Faez, F., Ghodsypour, S. H. and O’Brien, C., “Vendor selection and
order allocation using an integrated fuzzy case-based reasoning and
mathematical programming model”, International Journal of Production
Economics, 121(2)(2009), 395-408.
@article{"International Journal of Business, Human and Social Sciences:65256", author = "Om Pal and Amit Kumar Gupta and R. K. Garg", title = "Supplier Selection Criteria and Methods in Supply Chains: A Review", abstract = "An effective supplier selection process is very important to the success of any manufacturing organization. The main objective of supplier selection process is to reduce purchase risk, maximize overall value to the purchaser, and develop closeness and long-term relationships between buyers and suppliers in today’s competitive industrial scenario. The literature on supplier selection criteria and methods is full of various analytical and heuristic approaches. Some researchers have developed hybrid models by combining more than one type of selection methods. It is felt that supplier selection criteria and method is still a critical issue for the manufacturing industries therefore in the present paper the literature has been thoroughly reviewed and critically analyzed to address the issue.
", keywords = "Supplier selection, AHP, ANP, TOPSIS, Mathematical Programming", volume = "7", number = "10", pages = "2671-7", }
