ABSTRACT
The evaluation and selection of supplier is always a complicated task for the procurement team of any organization; as the selection is based on multiple criteria and alternatives, this problem becomes more and more complicated due to increasing complexity. This selection require practical strategies to find out the most suitable one for long-term business. Although numbers of multiple criteria decision-making (MCDM) methods are available to solve MCDM problems, it has been observed that in most of these methods the ranking results are very sensitive. This work proposes an MCDM-based framework to evaluate supplier selection using an entropy weight method (EWM) to calculate the weight of each criterion. Once the weight is calculated the EWM is combined with range of value (ROV) method and evaluation based on distance from average solution (EDAS) method for supplier rank identification. Finally, the ranking performance of these methods is compared. A numerical example along with graphical illustrations is considered and comparison analysis is provided to test the feasibility of the proposed method. In the illustrative example a manufacturing firm is looking to select the most suitable supplier among ten suppliers based on four criteria: price/cost, service, quality and delivery, in which price/cost is non-beneficial and other attributes are beneficial.
