Supplier Classification Using UTADIS Method Based on Performance Criteria

Supplier selection process has gained importance recently, since the cost of raw materials and component parts constitutes the main cost of a product and most of the firms have to spend considerable amount of their revenues on purchasing. Although many methods have been proposed and used for supplier evaluation and selection, most of them try to rank the suppliers from the best to the worst or to choose the best supplier among others. This study focuses on supplier evaluation and selection from the point of a new perspective based on UTADIS. In this paper, auther presents a UTADIS model for suppliers?classification based on performance criterias in SAPCO company. Auther uses the information about suppliers?performance score along all criteria in SAPCO company, for categorizing the suppliers into three groups A, B and C via calculating marginal and global utilities function.