Vendor Assessment: Supplier Evaluation and Assessment

Running head: VENDOR ASSESSMENT
Vendor Assessment
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Author Note

1VENDOR ASSESSMENT
Supplier Evaluation and Assessment
Answer to question number 1:
Multiple-Criteria Decision-making is a mathematical scoring method involved in selecting
suppliers or vendors. It is a sub-discipline of operational research, explicitly evaluating numerous
conflicting criteria in making a decision. However, there are various issues involved in that selection
as any mathematical scoring method is assimilated with subjective measures.
There are various MCDA models and methods present. However, none of them can be
regarded as most appropriate for every situation. Analysts and system engineers need to be cognizant
of limitations and assumptions of various MCDA methods for using them smartly (Mardani et al.,
2015). It is necessary to withstand scrutiny and not to be dismissed as falsifying with meaningless
and different magic numbers. The multiple issues of MCDM methods are demonstrated hereafter.
Multi-Attribute Utility Theory, a method of MCDM, requires lots of inputs. Here,
preferences need being precise. In Analytic Hierarchy Process, problems because of interdependence
between alternatives and criteria lead to inconsistencies between rank reversal, ranking and
judgment criteria (Bali & Amin, 2017). Case-Based Reasoning is sensitive to inconsistent data and
Data Envelopment Analysis never deals with imprecise data. The later one assumes that every output
and input is known correctly. The fuzzy set theory is difficult to develop and needs various
simulations before using. Further, the Simple Multi-Attribute Rating Technique is not always
convenient while the framework is considered. Lastly, the ability to weight coefficients of Goal
Programming requires being used through combining other MCDM methods for weighting
coefficients (Khan & Faisal, 2015).

2VENDOR ASSESSMENT