An integrated approach for supplier selection

Abstract

Competitive international business environment has forced many firms to focus on supply chain management to cope with highly increasing competition. Hence, supplier selection process has gained importance recently, since most of the firms have been spending considerable amount of their revenues on purchasing. The supplier selection problem involves conflicting multiple criteria that are tangible and intangible. Hence, the purpose of this study is to propose an integrated model for supplier selection. In order to achieve this purpose, supplier selection problem has been structured as an integrated lexicographic goal programming (LGP) and analytic hierarchy process (AHP) model including both quantitative and qualitative conflicting factors. The application process has been accomplished in a food company established in Istanbul, Turkey. In this study, the model building, solution and application processes of the proposed integrated model for supplier selection have been presented.