A Short Review of Multi Criteria Decision Making Approaches for Supplier Selection Problem

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Köçken H., Özkök B.

in: Encyclopedia of Information Science and Technology, Third Edition , Mehdi Khosrow-Pour D.B.A., Editor, IGI Global, Pennsylvania, pp.4961-4969, 2015

  • Publication Type: Book Chapter / Chapter Research Book
  • Publication Date: 2015
  • Publisher: IGI Global
  • City: Pennsylvania
  • Page Numbers: pp.4961-4969
  • Editors: Mehdi Khosrow-Pour D.B.A., Editor
  • Yıldız Technical University Affiliated: Yes


In the context of supply chain management, the supplier selection decision plays a key role. In today’s globally competitive environment, firms give great attention for selecting right suppliers because it helps to reduce the purchasing costs and to improve the quality of final products and services. Supplier Selection Problem (SSP) is a Multi Criteria Decision Making (MCDM) problem which includes both qualitative and quantitative factors like unit cost, delivery on-time, service quality etc. Multiple criteria of SSP may conflict with each other, so the selection process becomes complicated. SSP contains two major problems: (i) which supplier(s) should be chosen? and (ii) how much should be purchased from each selected supplier? In the last several years, SSP has gained great importance and is studied by both academic researchers and practitioners in business environment. Generally, MCDM is handled under two main headings: Multi Attribute Decision Making (MADM) and Multi Objective Decision Making (MODM). Based on this, we classify the existing approaches for SSP in mainly four categories: MADM approaches, MODM approaches, Artificial Intelligence (AI) approaches and other approaches. Here, other approaches category contains for the most part the integrated MCDM techniques for SSP. In this study, we aim to provide fundamental information about SSP and its prevalent solution methods. The sources used for our study consist of scientific refereed journals and are selected with respect to their citation rate and the ability of presenting the contained technique well. Also the publications in languages other than English and non-refereed professional ones are not included.