A New Dynamic Supplier Selection and Supplier Evaluation Model in a Company for Decision-Making Process

Supplier selection and evaluation processes are the companies’ most critical decision-making processes. To achieve the desired customer satisfaction, selecting the most suitable supplier and evaluating the suppliers with objective criteria and scientific methods is essential. Supplier Selection (SS) is a strategic decision that a company implements when searching for a new supplier. In contrast, Supplier Evaluation (SE) refers to selecting suppliers among their existing suppliers. As criteria and weights are different in the supplier decision of the companies, a flexible and extensible model called the Dynamic Supplier Analysis Model (DSAM) is developed. This model enables the creation of criteria groups under SS and SE templates, assigning weights to criteria, and applying Multi-Criteria Decision-Making (MCDM) methods. A software program, Dynamic Application for Supplier Analysis Model (DAppSAM), is developed to implement the DSAM model in one of the world’s leading chemical companies using an Enterprise Resource Planning System (ERP) as a case study. Decision-Making Trial and Evaluation Laboratory (DEMATEL) method is applied to calculate criterion weight using dependencies and relationships between criteria. The Analytical Hierarchy Process (AHP) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) MCDM methods were applied using a quality advantage SE template to select materials. The confirmed results by experts show that this model allows companies to analyze their suppliers efficiently.