A review of methods supporting supplier selection

Abstract

this paper we present a review of decision methods reported in the literature for supporting the supplier selection process. The review is based on an extensive search in the academic literature. We position the contributions in a framework that takes the diversity of procurement situations in terms of complexity and importance into account and covers all phases in the supplier selection process from initial problem definition, over the formulation of criteria, the qualification of potential suppliers, to the final choice among the qualified suppliers. Moreover, we propose decision methods and techniques that previously have not been suggested in a purchasing context. The proposed methods specifically accommodate for buying situations for which few or no decision models were published so far. This paper extends previous reviews by Weber et al. (Eur. J. Oper. Res. 50 (1991) 2), Holt (Int. J. Project Mange. 16 (1998) 153) and Degraeve et al. (Eur. J. Oper. Res. 125 (1) (2000a) 34) in that it classifies the models in a framework developed by De Boer (Ph. D. Thesis, University of Twente, Enschede, The Netherlands, 1998) which recognises more steps in the buying process than only the final among qualified suppliers and accommodates for the diversity of procurement situations.