Research Information System
19th International Conference on Multiple Criteria Decision Making (MCDM), Auckland, New Zealand, 7 - 12 January 2008, vol.634, pp.145-154
Purchasing is one of the vital functions within a company and supplier performance evaluation is one of the most important business processes of the purchasing function. Traditionally, companies have considered factors such as price, quality, flexibility, etc. when evaluating suppliers. Meanwhile, increasing pressures urge them to consider green issues. This study proposes a multi-criteria evaluation model for supplier performance evaluation by considering various performance criteria. It is shown that these criteria are not independent, in other words simultaneous satisfaction of two or more criteria is required for a good rating, while unilateral success is ineffective. The conventional weighted mean can not deal with this aspect, and compromise operators are more suitable. In this sense, the operators of the Choquet integral family are interesting and are applied to evaluate the suppliers' performance for an industrial case.