An integrated method for supplier selection in SCM

Abstract

Supplier selection is a multicriteria problem which multiattributions of the suppliers should be considered in SCM (supply chain management). This paper proposes a combination of AHP (analytical hierarchy process) with DEA (data envelopment analysis) to determine the integrated weight for the evaluation criteria of supplier so as to make up for the inconsistent judgments which the AHP is liable to decision-maker and also to solve the problem that the DEA cannot reflect well the preference of decision makers. The proposed methodology features both the merits of the algorithmic and procedural supplier selection approaches. It innovatively solves a supplier selection problem by utilizing both AHP and DEA procedures. A practical case study illustrates its efficiency and effectiveness.