MODIFIED PROMETHEE V METHOD FOR SUPPLIER PORTFOLIO SELECTION

This paper focuses on the problem of supplier portfolio selection where a company has to choose best possible set suppliers with respect various constraints. An intuitive heuristic can suggest use any methods for ranking and then put first one into portfolio. If some required constraint is not met, second according added, so on, until all constraints are satisfied. However, such approach result in non-optimal decision. The cause that combination alternatives lower rankings be better, than higher-ranked alternative from perspective feasibility. To build optimization model, authors this PROMETHEE V method: popular multi-criteria decision making method mixed integer programming. it shown original method, namely logic under which an objective function set, suitable here leads discrimination worse ranking. Therefore, modification, brings more reasonable results, proposed paper. A numerical example used show suitability compare results algorithm also prior modification introduced by other past. analysis further supported thorough sensitivity using flexible parametric