A new measure for supplier performance evaluation

Abstract

Recently the concept of dimensional analysis was used to propose a supplier performance measure and to obtain an index called the VPI (Vendor Performance Index). Usually the performance criteria used in supplier performance evaluation include quantitative and qualitative criteria. Here a new supplier performance measure is proposed as an alternative to the VPI. For qualitative criteria, a two-directional consideration is used instead of a one-directional approach, which results in only a single score. The fuzzy bag method is used to compensate for blindness in human judgement. Then all scores for quantitative and qualitative criteria are combined in an intuitive sum of weighted averages called the SUR. The SUR is illustrated and compared with the VPI by means of two examples.