A Decision-Making Framework for the Optimal Selection of Suppliers

As supply chains continue to globalize, the need for robust supplier qualification and supplier selection and evaluation programs becomes increasingly critical. In this context, this paper aims to present a methodological approach for the optimization of the procurement processes in today’s globalized supply chains. More specifically, we first provide a categorization of the relevant past research efforts, and then propose a generic methodological framework for the supplier selection and supplier evaluation problem. This framework is constituted by a five phased conceptual decision-making methodology that outlines the whole life cycle of the supplier selection and evaluation processes. In addition, we provide a new analytical goal-programming model for the initial selection and the periodic re-evaluation of suppliers in today’s globalized environment. This mathematical programming model is based on newly developed and integrated real world supplier quality indices.