The Cluster-Weighted DEMATEL with ANP Method for Supplier Selection in Food Industry

Abstract

In terms of keeping material costs low and increasing competitive advantage, supplier selection is one of the most important functions of a business. This paper uses an effective solution based on a combined Analytic Network Process (ANP) and Decision-Making Trial and Evaluation Laboratory (DEMATEL) approach to find the criteria that are key to performance improvement. This paper surveys the multicriteria supplier selection approaches and reveals the most popular criteria and sub-criteria. Based on experts’ suggestions and the most popular criteria, the key factors in the selection of food industry suppliers are identified. Then, the causal relationships and relative importance weights of the criteria in the system are computed using the cluster-weighted DEMATEL with ANP method. This paper compares the results of experts and purchasing managers and discovers a cognitive gap. The managers agree that cost and delivery are very important; they need to keep material costs down and increase the company’s competitive advantage. The experts value customer satisfaction and Corporate Social Responsibility (CSR), so they feel that quality and service are the most important criteria.