MULTI-CRITERIA DECISION-MAKING METHODS FOR SUPPLIER SELECTION: A LITERATURE REVIEW

Abstract

A firm’s multi-criteria decision-making (MCDM) process is important because of its need to select and work with various suppliers. The process identifies the problems associated with selecting the supplier, , determining convenient criteria, expressing interactions clearly, and usage. These are all suitable methods for finding a solution to these MCDM problems.Considering more than one criterion (and even the sub-criteria of these criteria) during supplier selection makes the selection uncertain. Conventional methods cannot generate a realistic solution to the problem. Using MCDM methods considerably simplifies solving the problem, and enables decision-makers to make better decisions. In this study, a literature review was performed on MCDM methods used between 2001 and 2014 for the supplier selection problem. MCDM methods used in supplier selection are categorised into three main methods, and a summary table of the reviewed studies is presented.