Developing a Decision Model for Supplier Selection

Supplier selection is an important problem in the supply chain management context. Given the multi-criteria nature of supplier selection decision, many multiple criteria decision methods are selected as a tool for this kind of decision making problems. However, the application of ELECTRE III in supplier selection decision has seldom been suggested in research literature. In this paper, a decision model for suppler selection based on ELECTRE III is presented, and the steps of its analyzing supplier selection problem are developed. The supplier selection method presented is very well suited as a decisionmaking tool for supplier selection decisions according to the example analysis. Finally, potential issues for future research are presented.