Multicriteria sorting method based on global and local search for supplier segmentation

Abstract

The aim of this research is to develop a robust multicriteria method to classify suppliers into ordered categories and its validation in real contexts. The proposed technique is based on a property of net flows of the PROMETHEE method and uses global and local search concepts, which are common in the optimisation field. The results obtained are compared to those from the most cited sorting algorithm, and an empirical validation and sensitivity analysis is performed using real supplier evaluation data. Furthermore, it does not require additional information from decision-makers as other sorting algorithms do for assigning incomparable or indifferent alternatives to groups. An extension of the silhouette concept from data mining is also contributed to measure the quality of ordered classes. Both contributions are easy to apply and integrate into decision support systems for automated decisions in the supply chain management. Finally, this practical approach is also useful to classify customers and any type of alternatives or actions into ordered categories, which have an increasing number of real applications.