Enhancing Supplier Selection in Public Manufacturing: A Hybrid Multi-Criteria Decision-Making Approach
DOI:
https://doi.org/10.31181/sdmap31202629Keywords:
Supplier selection, Fuzzy DEMATEL, BWM, CoCoSo, MOORA, TOPSISAbstract
In today's business world, outsourcing is a key strategy for organizations aiming to improve efficiency, reduce costs, and increase transparency. By using external experts, companies can quickly gain necessary resources and knowledge to better handle operational challenges. Therefore, choosing the right suppliers and contractors for manufacturing is essential. This study examines how public manufacturing organizations select suppliers and contractors, highlighting the importance of setting clear evaluation criteria before making selections. Following the Iranian Public Procurement Regulations, a strong set of criteria was created for effective supplier assessment. A combined Multi-Criteria Decision-Making (MCDM) approach was employed, integrating the Fuzzy DEMATEL method to analyze relationships among selection criteria, and the Best-Worst Method (BWM) to assign weights, with the best and worst criteria derived from the results of the Fuzzy DEMATEL analysis. The weighted criteria were then applied using three different MCDM techniques—COCOSO, MOORA, and TOPSIS—in a case study to rank potential suppliers. The results showed strong agreement among the methods, confirming the reliability of the evaluation framework and boosting stakeholder confidence in decision-making. This study demonstrates the effectiveness of MCDM strategies in promoting informed and strategic procurement decisions, ultimately leading to better operational efficiency and alignment with organizational goals in the public sector.
Downloads
References
Bubshait, A. A., & Al-Gobali, K. H. (1996). Contractor prequalification in Saudi Arabia. Journal of Management in Engineering, 12(2), 50–54. https://doi.org/10.1061/(ASCE)0742-597X(1996)12:2(50)
Ecer, F., & Pamucar, D. (2020). Sustainable supplier selection: A novel integrated fuzzy best worst method (F-BWM) and fuzzy CoCoSo with Bonferroni (CoCoSo’B) multi-criteria model. Journal of Cleaner Production, 266, 121981. https://doi.org/10.1016/j.jclepro.2020.121981
Pınar, A. (2020). Multiple criteria decision making methods used in supplier selection. Journal of Turkish Operations Management, 4(2), 449–478.
Topcu, Y. I. (2004). A decision model proposal for construction contractor selection in Turkey. Building and Environment, 39(4), 469–481. https://doi.org/10.1016/j.buildenv.2003.09.009
Khalfan, A., & Gough, T. G. (2000). IS/IT outsourcing practices in the public sector: A case study of a developing country. Research Report Series, Leeds School of Computer Studies, LU SCS RR, 15.
Ho, W., Xu, X., & Dey, P. K. (2010). Multi-criteria decision making approaches for supplier evaluation and selection: A literature review. European Journal of Operational Research, 202(1), 16–24. https://doi.org/10.1016/j.ejor.2009.05.009
Agarwal, P., Sahai, M., Mishra, V., Bag, M., & Singh, V. (2011). A review of multi-criteria decision making techniques for supplier evaluation and selection. International Journal of Industrial Engineering Computations, 2(4), 801–810.
Chai, J., Liu, J. N., & Ngai, E. W. (2013). Application of decision-making techniques in supplier selection: A systematic review of literature. Expert Systems with Applications, 40(10), 3872–3885. https://doi.org/10.1016/j.eswa.2012.12.040
Yildiz, A., & Yayla, A. Y. (2015). Multi-criteria decision-making methods for supplier selection: A literature review. South African Journal of Industrial Engineering, 26(2), 158–177. https://hdl.handle.net/10520/EJC177838
Chai, J., & Ngai, E. W. (2020). Decision-making techniques in supplier selection: Recent accomplishments and what lies ahead. Expert Systems with Applications, 140, 112903. https://doi.org/10.1016/j.eswa.2019.112903
Saputro, T. E., Figueira, G., & Almada-Lobo, B. (2022). A comprehensive framework and literature review of supplier selection under different purchasing strategies. Computers & Industrial Engineering, 167, 108010. https://doi.org/10.1016/j.cie.2022.108010
Sahoo, S. K., Goswami, S. S., & Halder, R. (2024). Supplier selection in the age of industry 4.0: A review on MCDM applications and trends. Decision Making Advances, 2(1), 32–47. https://doi.org/10.31181/dma21202420
Sahoo, S. K., & Goswami, S. S. (2024). Green supplier selection using MCDM: A comprehensive review of recent studies. Spectrum of Engineering and Management Sciences, 2(1), 1–16. https://doi.org/10.31181/sems1120241a
Tirkolaee, E. B., Mardani, A., Dashtian, Z., Soltani, M., & Weber, G. W. (2020). A novel hybrid method using fuzzy decision making and multi-objective programming for sustainable-reliable supplier selection in two-echelon supply chain design. Journal of Cleaner Production, 250, 119517. https://doi.org/10.1016/j.jclepro.2019.119517
Wu, C., Lin, Y., & Barnes, D. (2021). An integrated decision-making approach for sustainable supplier selection in the chemical industry. Expert Systems with Applications, 184, 115553. https://doi.org/10.1016/j.eswa.2021.115553
Ortiz-Barrios, M., Cabarcas-Reyes, J., Ishizaka, A., Barbati, M., Jaramillo-Rueda, N., & de Jesús Carrascal-Zambrano, G. (2021). A hybrid fuzzy multi-criteria decision making model for selecting a sustainable supplier of forklift filters: A case study from the mining industry. Annals of Operations Research, 307, 443–481. https://doi.org/10.1007/s10479-020-03737-y
Pamucar, D., Torkayesh, A. E., & Biswas, S. (2023). Supplier selection in healthcare supply chain management during the COVID-19 pandemic: A novel fuzzy rough decision-making approach. Annals of Operations Research, 328(1), 977–1019. https://doi.org/10.1007/s10479-022-04529-2
Koc, K., Ekmekcioğlu, Ö., & Işık, Z. (2023). Developing a probabilistic decision-making model for reinforced sustainable supplier selection. International Journal of Production Economics, 259, 108820. https://doi.org/10.1007/s10479-022-04529-2
Agrawal, N. (2022). Multi-criteria decision-making toward supplier selection: Exploration of PROMETHEE II method. Benchmarking: An International Journal, 29(7), 2122–2146. https://doi.org/10.1108/BIJ-02-2021-0071
Ecer, F., & Torkayesh, A. E. (2022). A stratified fuzzy decision-making approach for sustainable circular supplier selection. IEEE Transactions on Engineering Management, 71, 1130–1144. https://doi.org/10.1109/TEM.2022.3151491
Turskis, Z., & Zavadskas, E. K. (2010). A new fuzzy additive ratio assessment method (ARAS-F). Case study: The analysis of fuzzy multiple criteria in order to select the logistic centers location. Transport, 25(4), 423–432. https://doi.org/10.3846/transport.2010.52
Varmazyar, M., Dehghanbaghi, M., & Afkhami, M. (2016). A novel hybrid MCDM model for performance evaluation of research and technology organizations based on BSC approach. Evaluation and Program Planning, 58, 125–140. https://doi.org/10.1016/j.evalprogplan.2016.06.005
Eftekharzadeh, S., Ghoushchi, S., & Momayezi, F. (2024). Enhancing safety and risk management through an integrated spherical fuzzy approach for managing laboratory errors. Decision Science Letters, 13(3), 545–564. https://doi.org/10.5267/j.dsl.2024.5.006
Gabus, A., & Fontela, E. (1972). World problems, an invitation to further thought within the framework of DEMATEL. Battelle Geneva Research Center, Geneva, Switzerland, 1(8), 12–14.
Chang, B., Chang, C. W., & Wu, C. H. (2011). Fuzzy DEMATEL method for developing supplier selection criteria. Expert Systems with Applications, 38(3), 1850–1858. https://doi.org/10.1016/j.eswa.2010.07.114
Rezaei, J. (2015). Best-worst multi-criteria decision-making method. Omega, 53, 49–57. https://doi.org/10.1016/j.omega.2014.11.009
Yazdani, M., Zarate, P., Kazimieras Zavadskas, E., & Turskis, Z. (2019). A combined compromise solution (CoCoSo) method for multi-criteria decision-making problems. Management Decision, 57(9), 2501–2519. https://doi.org/10.1108/MD-05-2017-0458
Brauers, W. K., Baležentis, A., & Baležentis, T. (2011). MULTIMOORA for the EU Member States updated with fuzzy number theory. Technological and Economic Development of Economy, 17(2), 259–290. https://doi.org/10.3846/20294913.2011.580566
Hwang, C. L., Yoon, K., Hwang, C. L., & Yoon, K. (1981). Methods for multiple attribute decision making. Multiple Attribute Decision Making: Methods and Applications a State-of-the-Art Survey, 58–191. https://doi.org/10.1007/978-3-642-48318-9_3
Hwang, C. L., Lai, Y. J., & Liu, T. Y. (1993). A new approach for multiple objective decision making. Computers & Operations Research, 20(8), 889–899. https://doi.org/10.1016/0305-0548(93)90109-V
Yoon, K. (1987). A reconciliation among discrete compromise solutions. Journal of the Operational Research Society, 38(3), 277–286. https://doi.org/10.1057/jors.1987.44
Downloads
Published
Issue
Section
License
Copyright (c) 2025 Hossein Rahimi Kolour, Vahid Momayezi, Farid Momayezi (Author)

This work is licensed under a Creative Commons Attribution 4.0 International License.