Methodology for the supplier selection and valuation problem by using a combined grouping and multi-criteria approach Online publication date: Fri, 20-Oct-2023
by Anyi Reyes; John Willmer Escobar; Julio Cesar Londoño
International Journal of Logistics Systems and Management (IJLSM), Vol. 46, No. 2, 2023
Abstract: The supplier selection problem (SSP) determines the choice of the best suppliers by considering qualitative and quantitative criteria. This paper proposes a two-stage hybrid methodology for selecting suppliers using the K-means grouping technique and the multi-criteria decision-making technique for order performance by similarity to ideal solution (TOPSIS). In particular, suppliers are grouped according to the K-means algorithm using diverse purchase categories of services and goods. Once the groups of suppliers with the best performance have been generated by considering several criteria, the TOPSIS algorithm establishes their ranking. The proposed approach seeks to minimise the purchase cost by selecting the suppliers with the best results under different criteria. The former methodology has been tested in a real case on a company belonging to the agro-industrial sector in Colombia. The obtained results show the efficiency of the proposed approach.
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