ELECTRE applied in supplier selection – a literature review

Abstract

Decision models play an important role in helping people and organizations make the best possible decision with the information and data available. One of the most important steps to business growth is supplier selection, and, regarding this topic, decision models are very useful. An incorrect supplier selection could cause financial and operational problems for a company. In addition to reducing purchase costs and improving market competitiveness, choosing the right suppliers improves user satisfaction. In this context, this study presents a literature review on a multi criteria decision model called ELimination and Choice Expressing REality (ELECTRE) applied to supplier selection. Twenty-two studies were reviewed and characterized in terms of which ELECTRE method was applied, in which industry was applied, and if it was integrated or compared with another model. The results revealed that ELECTRE is not applied solely often, and is commonly applied in hybrid manner, merged with other methods, such as AHP and TOPSIS, and these types of application result in a more robust outcome. The gathered results can lead to managers and researchers to take a deeper dive into this marginally explored topic.