A DEA-like model for multiple criteria supplier selection problem

Abstract

In today’s highly competitive environment, an effective supplier selection process is crucial to the success of any manufacturing organization. Supplier selection serves as one of the most critical functions to be undertaken by the purchasing department, as it directly impacts the quality of products, costs, and overall operational efficiency. This process is inherently complex due to the multi-criterion nature of the problem, incorporating both qualitative and quantitative criteria that reflect the diverse attributes of potential suppliers. A careful trade-off between these tangible and intangible factors is essential for identifying the best supplier. Numerous models and techniques have been developed to facilitate the selection and evaluation of suppliers. In this paper, we propose a simple weighted linear optimization model designed to address the multiple criteria supplier selection problem efficiently. Our model ranks suppliers without requiring the resolution of the model multiple times—only once for all suppliers—thus enabling managers to obtain faster and more efficient results in their decision-making processes.