Decision Making for Supplier Selection Using the MOORA Method

Constructing an appropriate model for supplier selection is an important function to improve capability and competitiveness of the business organizations. Proper selection of the suppliers not only avoids manufacturing delays but also helps saving material cost, leading to increase in the profit margins of the organizations. Thus, supplier selection has become crucial in today’s extremely competitive global environment for any organization to be successful. Availability of a large number of alternative suppliers with dissimilar strengths and weaknesses for different criteria requires a cautious step towards supplier selection. In the recent past, various Multi-Criteria Decision-Making (MCDM) methods have been successfully employed by the researchers to deal with the supplier selection problems. In this paper, Multi-Objective Optimization on the basis of Ratio Analysis (MOORA) is applied to solve two real-time supplier selection problems. The ranking performance of two extensions of MOORA method, i.e., full multiplicative MOORA method and reference point approach, are also tested for the considered problems. The results obtained using these three methods are observed to be almost similar to those derived by the past researchers