Multi-criteria decision making method & value engineering–a new concept in vendor selection

In this paper we have discussed the concepts of value engineering based function analysis to optimize function and cost ratio in particular situation. The supply selection problem is multi-objective problem involving both qualitative and quantitative factors. These factors and their interdependencies make problem highly complex one. The vendor selection issue has been founded out as one of the fundamental operation in the supply chain. The vendor selection process can be a very complicated and emotional. In this study, a value engineering decision support system has been developed for solving the vendor selection problem with multiple that vendor selection criteria will continue to change based on an expended definition of excellence to include traditional aspects of performance like Quality, Service, Cost, Delivery, Reliability and General reputation.