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Supplier-Selection-Criteria-and-Methods-in-Supply-Chains-a-Review

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Submitted By ChrisLIan
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World Academy of Science, Engineering and Technology
International Journal of Social, Behavioral, Educational, Economic and Management Engineering Vol:7, No:10, 2013

Supplier Selection Criteria and Methods in Supply
Chains: A Review
Om Pal, Amit Kumar Gupta, R. K. Garg

International Science Index Vol:7, No:10, 2013 waset.org/Publication/16944

Abstract—An effective supplier selection process is very important to the success of any manufacturing organization. The main objective of supplier selection process is to reduce purchase risk, maximize overall value to the purchaser, and develop closeness and long-term relationships between buyers and suppliers in today’s competitive industrial scenario. The literature on supplier selection criteria and methods is full of various analytical and heuristic approaches. Some researchers have developed hybrid models by combining more than one type of selection methods. It is felt that supplier selection criteria and method is still a critical issue for the manufacturing industries therefore in the present paper the literature has been thoroughly reviewed and critically analyzed to address the issue. Keywords—Supplier selection,
Mathematical Programming.

AHP,

ANP,

TOPSIS,

I. INTRODUCTION

I

N most industries, the cost of raw materials and component parts represents the largest percentage of the total product cost. For instance, in high technology firms, purchased materials and services account for up to 80% of the total product cost. Therefore, selecting the right suppliers is the key to procurement process and represents a major opportunity for companies to reduce costs across its entire supply chain.
Choosing the right method for supplier selection effectively leads to a reduction in purchase risk and increases the number of JIT suppliers and TQM production. Supplier selection problem has become one of the most important

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