Optimal Supplier Selection Using MOORA MCDM Method

Supplier selection is the process through which companies identify, evaluate, and contract suppliers. This procedure plays a pivotal role in allocating a company's financial resources and ensuring its success. Given its complex nature, supplier selection involves numerous factors or criteria of varying qualities and quantities. Viewing supplier selection as a multi-attribute decision-making (MADM) problem, decision makers (DMs) often grapple with uncertainties that make the process challenging. One method to handle such uncertain information is the gray theory, renowned for its computational excellence in mathematical analysis. This paper proposes a novel approach that leverages the Multi-Objective Optimization on the basis of Ratio Analysis (MOORA) method to address specific supplier selection challenges. The effectiveness of the complete multiplicative MOORA method and the reference point approach are assessed. Specific criteria for supplier selection examined in this study include Minimum Delivery Performance, Quality Performance, Price/Cost, Financial Stability, and Maximum Management and Organizational Strength. Among the issues considered, Supplier Selection Problem 4 attained the highest rank, whereas Supplier Selection Problem 6 ranked the lowest.