Modified PROMETHEE V Method for Supplier Portfolio Selection

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F29142890%3A_____%2F22%3A00043465" target="_blank" >RIV/29142890:_____/22:00043465 - isvavai.cz</a>

Alternative codes found

RIV/61989100:27510/22:10251196

Result on the web

<a href="https://actalogistica.eu/issues/2022/III_2022_05_Zapletal_Trumic_Lenort.pdf" target="_blank" >https://actalogistica.eu/issues/2022/III_2022_05_Zapletal_Trumic_Lenort.pdf</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.22306/al.v9i3.310" target="_blank" >10.22306/al.v9i3.310</a>

Result language

angličtina

Original language name

Modified PROMETHEE V Method for Supplier Portfolio Selection

Original language description

This paper focuses on the problem of supplier portfolio selection where a company has to choose the best possible set of suppliers with respect to various constraints. An intuitive heuristic can suggest to use any of the methods for suppliers ranking and then to put the first one into the portfolio. If some required constraint is not met, then the second supplier according to the ranking is added, and so on, until all the constraints are satisfied. However, such approach can result in a non-optimal decision. The constraints can cause that a combination of the alternatives with lower rankings can be better, than some higher-ranked alternative from the perspective of feasibility. To build the optimization model, the authors of this paper use the PROMETHEE V method: a popular combination of multi-criteria decision making method PROMETHEE and mixed integer programming. However, it is shown that the original PROMETHEE V method, namely the logic under which an objective function is set, is not suitable here and leads to discrimination of suppliers with worse ranking. Therefore, a modification, which brings more reasonable results, is proposed in this paper. A numerical example is used to show the suitability of the proposed approach and compare the results with the original algorithm and also with one prior modification introduced by by other authors in the past. The analysis is further supported by a thorough sensitivity analysis using flexible and parametric programming.

Czech name

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Czech description

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Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

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OECD FORD branch

50200 - Economics and Business

Project

—

Continuities

N - Vyzkumna aktivita podporovana z neverejnych zdroju

Publication year

2022

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Acta logistica

ISSN

1339-5629

e-ISSN

—

Volume of the periodical

9

Issue of the periodical within the volume

3

Country of publishing house

SK - SLOVAKIA

Number of pages

11

Pages from-to

291-301

UT code for WoS article

—

EID of the result in the Scopus database

2-s2.0-85139425426