Multi-Objective Decision-Making In Supplier Selection: An Application Of Visual Interactive Goal Programming

Abstract

Supplier selection by purchasing teams in a supply chain management environment is inherently a multi-objective problem. The authors discuss one of the multiple criteria decision support systems; Visual Interactive Goal Programming (VIG), to assist purchasing teams in their vendor selection decisions. VIG is based on a multi-criteria technique known as Pareto Race. Two examples illustrate the application of VIG in different multi-objective supplier selection environments. The first example demonstrates the allocation of a single product among multiple vendors, while the second example focuses on a multiple-replenishment purchasing problem in selecting supplier and allocating orders among them. The authors conclude with a discussion of VIGs benefits and limitations.