Integration of Analytic Network Process and PROMETHEE in Supplier Performance Evaluation

Abstract

Supplier performance evaluation is one of the important factors in the supply chain because it is one of the company's strategies for increasing customer satisfaction and also maintaining the company's services in meeting consumer demand. This study proposes the integration of the Analytic Network Process (ANP) and the Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE) to evaluate supplier performance. The integration of the two methods is proposed to obtain more complex assessment results because the combination of the two methods considers various criteria derived from ANP and various preferences from PROMETHEE, so both methods are very good to use instead of using just ANP or PROMETHEE or other methods. ANP exhibit more complex relationships between criteria and levels in the decision hierarchy, while PROMETHEE provides decision-makers with flexible and straightforward outranking to analyze multi-criteria problems. In this study, ANP is used to weight the criteria, and PROMETHEE is used to rank suppliers in evaluating supplier performance. Integrating these two methods provides more objective and accurate results in multi-criteria decision-making. The proposed method is validated by solving an industrial case of supplier evaluation problem using the real data from the skewer industry. Finally, some useful implications for managerial decision-making are discussed.