A decision model for supplier selection based on business system management and safety criteria and application of the model

Abstract

In modern market conditions, sustainable and effective management of main manufacturers, suppliers and customer relationship is a necessity for competitiveness. Suppliers must satisfy customers' expectations such as cost minimization, quality maximization, improved flexibility and achieved deadlines; which is also required for systematic management of products, work and environmental safety. The supplier selection process is consistently getting more complicated by the effect of increasing amount of suppliers and supplier selection criteria. Supplier selection decisions which take an important role in efficient supplier management will be more consistent by the application of decision making models which integrate the quantitative and qualitative evaluation factors. In this study, a dynamic process is designed and modeled for supplier selection. For this purpose, evaluation criteria are established according to the Balanced Scorecard perspectives, system sustainability and safety requirements. Fuzzy Analytic Hierarchy Process method is used for evaluating the importance of supplier selection criteria. A utility range-based interactive group decision making method is used for the selection of the best supplier. In order to test the proposed model, a representative from airport operation sector is selected. Finally, it is revealed that the application of the proposed model generates consistent results for supplier selection decisions.