Abstract
The problem approached is regarding supplier selection in a wholesaler and retailer of the construction sector. The current approach used in the company analyzed for the supplier selection problem is unable to evaluate the many issues that the company considers must be addressed. Thus, the Flexible and Interactive Tradeoff (FITradeoff) ranking method was chosen to deal with this problem. It seeks to elicit criteria weights in a decision problem, using partial information about the decision maker's (DM’s) preferences in order to choose the most attractive alternative, based on the ranking of the suppliers provided. Based on the Hasse diagram developed when applying the method, the DM makes some observations regarding the suppliers' positions in the ranking. Bar graphics and radar graphics were also used and these enable the DM to evaluate each supplier better. It was perceived that the method is applicable and well accepted by the DM. The graphic part helps the DM in understanding the analysis of the problem, offering no barriers to proceed with the tradeoff. Thus, for this situation of selecting a supplier in a wholesaler and retailer of the construction sector, the DM felt comfortable with the proposed approach using the FITradeoff multicriteria ranking method and with the results presented, and the proposed approach is shown to be adequate.
Highlights
E supplier selection process is very important for medium and small organizations since they have limited resources and operational capacity. erefore, by ensuring that they select suitable suppliers, they can obtain more significant gains for the business, increasing the performance and profitability
multicriteria decision-making/aiding (MCDM/A) problems consist of decisions in which there are at least two alternative actions to evaluate with regard to two or more attributes [5,6,7], which is the situation in most supplier selection processes. ese decisions are made to meet multiple goals that often conflict with each other
Many decisions in business organizations are based on MCDM/A approaches, which have been applied in many situations and different contexts, such as in newsvendor problem [8], maintenance strategy [9], portfolio selection of projects [10], and risk analysis of hydrogen pipelines [11]
Summary
Supplier selection is one of the most critical activities of the procurement process in a SCM because a wrong choice can lead to the supply chain as a whole suffering loss, directly affecting the performance of the organizations involved [13, 18] In this context, suppliers should be selected by using formalized methods that ensure that the selection process is reviewed and evaluated and the company’s decision-making process is more readily able to choose the suppliers that best align with the company’s objectives and supply chain [22]. It is observed that most of the models combine more than one technique for structuring and solving supplier selection problems [1, 27] Another fundamental aspect is to establish the most important criteria in a decision problem. Ey identified three key points: (1) Many factors are usually considered when selecting suppliers, as it is important for the process of building decision-making models to consider several criteria that aid finding solutions for supplier selection problems. Because each organization has its own strategic interests, the decision problem needs to be structured within its specific context. us, by considering the DM’s rationality, the ranking problem, and the need for a more flexible method for setting the parameters, the supplier selection problem in this study is built based on a multicriteria additive aggregation approach, considering the FITradeoff method, as presented
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