Development of a decision support system for supplier evaluation and order allocation

This study aims to develop models and generate a decision support system (DSS) for the improvement of supplier evaluation and order allocation decisions in a supply chain. Supplier evaluation and order allocation are complex, multi criteria decisions. Initially, an analytic hierarchy process (AHP) model is developed for qualitative and quantitative evaluation of suppliers. Based on these evaluations, a goal programming (GP) model is developed for order allocation among suppliers. The models are integrated into a DSS that provides a dynamic, flexible and fast decision making environment. The DSS environment is tested at the purchasing department of a manufacturer and feedbacks are obtained.