Supplier Selection and Evaluation in Supply Chain Management

This paper presents an integrated method for dealing with such problems using correlated Analytic Hierarchy and the techniques of linear physical programming. The proposed method demonstrates selection of appropriate supplier and is to create a model of the supplier relationship management process, which can be applied in business organizations. besides this, paper examines the benefits of a supplier relationship management process, how to measure the success of the process as well as the relevant stakeholders of the process. The correlation between criteria is commonly observed in the realistic problems. The correlated Analytic Hierarchy considers the correlation effect between criteria in the Analytic Hierarchy process. LPP is a multi-objective optimization method that develops an aggregate objective function of the criteria in a piecewise, Archimedean-goal-programming fashion. A decision maker is enable by linear physical programming model to consider multiple criteria (i. e. , cost, customer service, and intangible benefits) and also to find out how firms set evaluation criteria for their suppliers, and how they use the evaluation system in practice, if they have one