An Integrated Approach to Resolve the Conflict in Supplier Selection

Supplier selection is one of the most strategic decisions in supply chain management, as it impacts cost effectiveness, quality control, and the enterprise's overall operating performance. The literature indicates that applying Total Cost of Ownership (TCO) and the Analytic Hierarchy Process (AHP) separately often yields conflicting outcomes in supplier selection. To address this, recent studies recommend integrating both methods with the Data Envelopment Analysis (DEA) framework. Based on this suggestion, the present research formulates six distinct combinations. Each of these combinations are evaluated using two different DEA models, where each combination employs its own specific set of input and output variables. The proposed approach, enhancing the traditional DEA models with tailored input-output specifications, delivers precise and consistent supplier rankings. These modified combinations of DEA–TCO–AHP configurations result in clear and robust supplier hierarchies, effectively resolving the ranking ambiguities observed in conventional approaches. Thus, the proposed framework enhances strategic sourcing decisions by combining both qualitative and quantitative factors, making it a useful tool in real-world applications.