The Supplier Selection Decision

The Supplier Selection Decision

 

The decision to place a certain volume of business with a supplier should always be based on a sound set of criteria.  The “art” of good supply management is to make the reasoning behind this decision as sound as possible. 

 

  • Decision Trees – The supplier selection decision can be seen as a decision made under uncertainty and can be represented by a decision tree.  To use decision tress effectively, the supply professional must identify the options and the criteria for evaluation and assess the probabilities of success and failure.