Multi-criteria decision-making model for supplierevaluation and selection in oil and gas companies

Abstract

The purpose of the study is to develop a proposed model for the assessment and selection of suppliers in oil and gas companies using a multi-criteria decision-making approach. The main-criteria and sub-criteria were identified and their relative weights were calculated. At the results the suppliers areclassified according to the relative importance of criteriawhich assist in the establishment of the final supplier evaluating matrix. The "expert choice" software was used to analyse the sensitivity of the model result. The study based on five main criteria and eighteen sub-criteria for the supplier evaluation and selection, in addition to establishes a flexible model that helps in choosing suppliers, taking into account the multiplicity of criteria and differences. The study recommends that the use of multi-criteria methods in the process of selecting and evaluating suppliers, could contribute to improving the supply chain, developing the decision-making process and increasing performance efficiency in oil and gas companies