Journal of Supply Chain Management Systems

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Multi Criteria Supplier Selection Using PROMETHEE Outranking Procedures


Affiliations
1 Business Studies and Development Office, Saipayadak (Saipa after sales services organization), Iran, Islamic Republic of
     

   Subscribe/Renew Journal


Some authors implicitly claim that in some of times, you got to decide between two alternatives (suppliers). In other words, the two best-ranked alternatives are incomparable, and there is no clear evidence in favor of either of alternatives. However, some of the conventional MCDM (Multiple Criteria Decision Making) models introduced only one of them as the best alternative. Thus, it will cause biased in results and DMs (Decision Makers) to make the wrong decision. Since, in order to effectively solve this limitation, this paper proposed an outranking procedure, called PROMETHEE (Preference Ranking Organization METHODS for Enrichment Evaluations) to deal with the supplier selection problem. Because, one of the advantages of this approach is bring out such incomparabilities. In other words, in the proposed method (PROMETHEE I), some alternatives are comparable, while some others are not. However, in this circumstance it is recommended that additional information is required, but other models ignored it. Therefore, the PROMETHEE I is an effective approach in dealing with this kind of decision problem. Moreover, the weights of the criteria are determined by using Entropy method. Finally, a comparative analysis is performed, and the proposed method seems to be more satisfactory than the other MCDM models (i.e. PROMETHEE II, AHP, and TOPSIS) for solving decision problems.

Keywords

MCDM, PROMETHEE, Incomparability, Supplier Selection Problem.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Adalı, E. A., Işık, A. T., & Kundakcı, N. (2016). An alternative approach based on fuzzy PROMETHEE method for the supplier selection problem. Uncertain Supply Chain Management, 4(2016), 183-194.

  • Akbib, M. (2016). Multi criteria decision-making: Application of the PROMETHEE-GAIA method to the supplier selection problem of an inductive components company. International Journal of Modern Trends in Engineering and Research, 3(11), 163-171.

  • Alinezhad, A., & Amini, A. (2011). Sensitivity analysis of TOPSIS technique: The results of change in the weight of one attribute on the final ranking of alternatives. Journal of Optimization in Industrial Engineering, 7(2011), 23-28.

  • Azadfallah, M. (2014). A supplier selection using an extension of MCDM models. Journal of Supply Chain

  • Management Systems, 3(2), 41-46.

  • Azadfallah, M. (2016a), Improving preference assessment in TOPSIS method for multi-criteria supplier selection problem. Int. J. Supply Chain and Operations Resilience, 2(3), 233-245.

  • Azadfallah, M. (2016b). Supplier selection under incomplete preference information. International Journal of Business Analytics and Intelligence, 4(2), 51-57.

  • Boer, L. D., Labro, E., & Morlacchi, P. (2001). A review of methods supporting supplier selection. European Journal of Purchasing & Supply Management, 7(2), 75-89.

  • Bogdanovic, D., Nikolic, D., & Ilic, I. (2012). Mining method selection by integrated AHP and PROMETHEE method. Anais da Academia Brasileira de Ciencias, 84(1), 219-233.

  • Brans, J. P., & Vincke, P. (1985). A preference ranking organization method: (the PROMETHEE method for multi criteria decision making). Management Science, 31(6), 647-656.

  • Brans, J. P., & Mareschal, B. (2005). PROMETHEE methods, Figueira J., Salvatore G., and Ehrgott (Eds.), Multiple criteria decision analysis: state of the art survey, Ch. 5, Springer, 163-195.

  • Dulmin, R., & Mininno, V. (2003). Supplier selection using a multi criteria decision aid method. Journal of Purchasing and Supply Management, 9(2003), 177-187.

  • Goncalo, T. E. E., & Alencar, L. H. (2014). A supplier selection model based on classifying its strategic impact for a company’s business results. Pesquisa Operacional, 34(2), 347-369.

  • Hesani, E., Fahimi, M., Sharifi, S., & Zamani, N. (2014). Selection of supplier in Lamerd cement company using innovative DEMATEL-PROMETHEE I & II hybrid method. Asian Journal of Research in Social Science and Humanities, 4(5), 591-604.

  • Ishizaka, A. (2012). Clusters and pivots for evaluating a large number of alternatives in AHP. Brazilian Operations Research Society, ISSN 01.1-7438.

  • Kuo, T. C., Hsu, C. W., & Li, J. Y. (2015). Developing a green supplier selection model by using the DANP with VIKOR. Sustainability, 7, 1661-1689. doi: 10.3390/ su7021661.

  • Lotfi, F. H., & Fallahnejad R. (2010). Imprecise Shannon’s entropy and multi attribute decision-making. Entropy, 12, 53-62.

  • Macharis, C., Springael, J., De Brucker, K., & Verbeke, A. (2004). PROMETHEE and AHP: the design of operational synergies in multi criteria analysis. Strengthening PROMETHEE with ideas of AHP. European Journal of Operational Research, 153 (2004), 307-317.

  • Mahmoudi, A., Sadi-Nezhad, S., & Makui, A. (2015). An extended fuzzy PROMETHEE based on fuzzy rule based system for supplier selection problem. Indian Journal of Science & Technology, 8, 31, 1-11.

  • Ozturk et al. (2013). Personnel selection in an accommodation enterprise by PROMETHEE method. International Journal of Business and Commerce, 5(3), 1-19.

  • Radfar, R., & Salahi, F. (2014). Evaluation and ranking of supplier with fuzzy DEA and PROMETHEE approach. Int. J. Industrial Mathematics, 6(3), 189-197.

  • Rao, R. V., & Rajesh, T. S. (2009). Software selection in manufacturing industries using a fuzzy multi criteria decision making model, PROMETHEE. Intelligent Information Management, 2009(1), 159-165.

  • Safari, H., Fagheyi, M. S., Ahangari, S. S. (2012). Applying PROMETHEE method based on entropy weight for supplier selection. Business Management and Strategy, V 3(1), 97-106.

  • Sari, T., & Timor, M. (2016). Integrated supplier selection model using ANP, Taguchi loss function and PROMETHEE methods. Journal of Applied Quantitative Methods, 11(1), 19-34.

  • Schwrtz, M., & Gothner, M. (2009). A novel approach to incubator evaluations: the PROMETHEE outranking procedures. IWH-Diskussionspapiere 1/2009, 1-30.

  • Shirinfar, M., & Haleh, H. (2011). Supplier selection and evaluation by fuzzy multi criteria decision making methodology. International Journal of Industrial Engineering & Production Research, 22(4), 271-280.

  • Shirouyehzad, H., Lotfi, F. H., & Reza, D. (2013). Aggregating the results of ranking models in data envelopment analysis by Shannon’s entropy: A case study in hotel industry. International Journal of Modeling in Operations Management, 3(2), 149-163.

  • Tabar, A. A. Y., & Charkhgard, H. (2012). Supplier selection in supply chain management by using ANP

  • and fuzzy TOPSIS. International Journal of Applied Physics and Mathematics, 2(6), 458-461.

  • Tahriri, F., Osman, M. R., Ali, A., & Yusuff, R. M. (2008). A review of supplier selection methods in manufacturing industries. Journal of Science and Technology, 15(3), 201-208.

  • Triantaphyllou, E., Shu, B., Sanchez, S. N., & Ray, T. (1998). Multi criteria decision making: An operations research. Encyclopedia of electrical and electronics engineering. John Wiley and Sons, New York, 15, 175-186.

  • Tsui, C. V., & Wen, U. P. (2012). Developing the green supplier selection procedure based on Analytic Hierarchy Process and outranking methods. Proceeding of the 2012 international conference on industrial engineering and operations management / Istanbul, Turkey, July 3-6, 2012, 299-307.

  • Wang, T. C., Chen, L. Y., & Chen, Y. H. (2008). Applying fuzzy PROMETHEE method for evaluating IS outsourcing suppliers. Fifth international conference on fuzzy systems and knowledge discovery. doi: 10.1109/ fskd.2008.506, 361-365.

  • Yilmaz, B., & Dagdeviren, M. (2011). A combined approach for equipment selection: F-PROMETHEE method and zero-one goal programming. Expert systems with Applications, 38(2011), 11641-11650.


Abstract Views: 371

PDF Views: 0




  • Multi Criteria Supplier Selection Using PROMETHEE Outranking Procedures

Abstract Views: 371  |  PDF Views: 0

Authors

Mohammad m.azadfallah@yahoo.com Azadfallah
Business Studies and Development Office, Saipayadak (Saipa after sales services organization), Iran, Islamic Republic of

Abstract


Some authors implicitly claim that in some of times, you got to decide between two alternatives (suppliers). In other words, the two best-ranked alternatives are incomparable, and there is no clear evidence in favor of either of alternatives. However, some of the conventional MCDM (Multiple Criteria Decision Making) models introduced only one of them as the best alternative. Thus, it will cause biased in results and DMs (Decision Makers) to make the wrong decision. Since, in order to effectively solve this limitation, this paper proposed an outranking procedure, called PROMETHEE (Preference Ranking Organization METHODS for Enrichment Evaluations) to deal with the supplier selection problem. Because, one of the advantages of this approach is bring out such incomparabilities. In other words, in the proposed method (PROMETHEE I), some alternatives are comparable, while some others are not. However, in this circumstance it is recommended that additional information is required, but other models ignored it. Therefore, the PROMETHEE I is an effective approach in dealing with this kind of decision problem. Moreover, the weights of the criteria are determined by using Entropy method. Finally, a comparative analysis is performed, and the proposed method seems to be more satisfactory than the other MCDM models (i.e. PROMETHEE II, AHP, and TOPSIS) for solving decision problems.

Keywords


MCDM, PROMETHEE, Incomparability, Supplier Selection Problem.

References