Multiple Criteria Decision Making in Supply Chain Management — Currently Available Methods and Possibilities for Future Research

Multiple criteria decision making in supply chain management — Currently available
methods and possibilities for future research

Author(s): Patrick Beck and Erik Hofmann
Source: Die Unternehmung, Vol. 66, No. 2 (2012), pp. 180-213
Published by: Nomos Verlagsgesellschaft mbH
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Multiple criteria decision making in supply chain
management - Currently available methods and
possibilities for future research
Patrick Beck und Erik Hofmann

Literaturübersicht, Supply Chain Management, Multikriterielle Ent
scheidungsfindung, Multi-attributive Nutzentheorie
Literature review, Supply chain management, Multiple criteria deci

sion making, Multi-attributive utility theory
Entscheidungen im Supply Chain Management (SCM) unterliegen

einer Reihe von konfliktären Kriterien und müssen mehrere Ziele im
Entscheidungsprozess berücksichtigen. Des Weiteren ist meist eine
Gruppe von Entscheidern in den Prozess eingebunden, anstelle eines
einzelnen Entscheidungsträgers. Für derartige Entscheidungen sind
multikriterielle Entscheidungsverfahren geeignet. Gegenwärtig ist
jedoch kein Überblick über die Anwendung multikriterieller Ent
scheidungsverfahren im SCM verfügbar. Dieser Aufsatz führt eine
Literaturrecherche durch, um diese Lücke zu schliessen und einen
Überblick über die Anwendung multikriterieller Entscheidungsver
fahren im SCM zu geben. Wir kategorisieren 124 Aufsätze nach An
wendungsbereichen in SCM, angewandte Methoden, Zeitschriften,
fahr der Veröffentlichung, und prüfen, ob die Aufsätze einen Grup
penentscheidungs-Ansatz integrieren oder empirische Belege nutzen.
Ein zentrales Ergebnis ist das kräftige Wachstum der multikriterieller Entscheidungsver
fahren im SCM in den letzten sechs Jahren, das sich voraussichtlich in Zukunft fortsetzen
wird. Darüber hinaus ist der SCM-Anwendungsbereich Einkauf bereits gut abgedeckt, im
Gegensatz zu dem SCM-Anwendungsbereich Distribution. Der akademische und prakti
sche Beitrag des Aufsatzes liegt in der Übersicht multikriterieller Entscheidungsverfahren
für SCM-Entscheidungsprobleme. Ausserdem präsentieren wir potenzielle Bereiche für die
zukünftige Forschung zu multikriteriellen Entscheidungsverfahren im SCM.
Decisions in supply chain management (SCM) are subject to various conflicting criteria
and multiple objectives must be considered in the decision process. Furthermore, a group,
rather than a single decision maker, is often involved in the process. For such decisions,
methods in multiple criteria decision making (MCDM) are certainly appropriate. How
ever, an overview concerning applications of MCDM methods in SCM is not yet availa
ble. This paper conducts a literature survey to fill this gap and give an overview of
MCDM applications in SCM; a research map is developed to guide researchers interested
in this field. We categorize 124 reviewed articles according to application areas in SCM,
applied methods, journals, publication year and we ascertain whether the papers incorpo
rate a group decision approach or use empirical support for the MCDM application. A
l8o Die Unternehmung, 66. Jg., 2/2012
Beck/Hofmann | Multiple criteria decision making in supply chain management
central review finding is the strong growth of MCDM applications in SCM in the last six
years, expected to continue in the future. In addition, the application area purchasing is
already well covered, contrary to the application area distribution. This article's contribu
tion to academia, as well as business practice, is represented in the MCDM methods over
view, currently available for SCM decision problems. We also present potential areas for
future research.
1. Introduction
A properly functioning supply chain management (SCM) is crucially important in dealing

with dynamically changing customer requirements. In fact, in the current business envi
ronment, whole supply chains are competing with each other instead of single companies
(cf. Li 2002; Ha/Tong 2008). While earlier research in SCM was mostly efficiency driven,
the focus today moves to effectiveness issues and a stronger customer orientation (cf. Zo
kaei/Hines 2007; Godsell et al. 2011). SCM developed from a subject of operational and
tactical consideration to a strategic topic within management research and business prac
tice (cf. Melnyk et al. 2009; Hofmann 2010).
As the importance of certain management areas increases, the need for suitable decision
support in these areas also rises. Decision problems in SCM range from single quantitative
criterion analyzes to multiple criteria and/or objectives problems, where quantitative as
well as qualitative criteria must be incorporated. A very common decision problem in
SCM is the single-criterion, purely quantitative consideration of inventory control. For
such problems, classical methods only consider costs and minimize them under certain
constraints, like customer service. However, even in such cases, authors tend to state that
conflicting goals are balanced (cf. Axsäter 2006). An extension of this problem would be
the introduction of a second objective, e.g. simultaneous minimization of costs and maxi
mization of customer service, a bi-objective problem. One SCM problem is supplier selec
tion; its complexity and importance for manufacturers, requires consideration of several
conflicting quantitative and qualitative criteria (cf. Wn et al. 2010). Such problems often
include objectives like maximizing quality and reliability of the supplier, while minimizing
cost and risk linked to the sourced item. All of the decision problems above have a tre
mendous impact on the success of single companies and whole supply chains. Incorrect de
cisions may cause decreasing competitiveness or even the collapse of companies or whole
supply chains. Due to the importance and impact of correct decisions within SCM, suita
ble decision support for different decision problems in SCM is relevant and should not be
neglected by academia.
Regarding optimization problems, there are many academic contributions about appli
cations of such methods in SCM or topics relevant to SCM. These papers include applica
tions for operative and tactical problems like production and transportation planning, as
well as utilization in strategic context, e.g. supply chain network design. These optimiza
tion approaches ensure optimal solutions for the considered objective functions and may
save money for the company or ensure flexibility in customer service. Several literature
reviews give a comprehensive overview of these applications (e.g. Tamiz et al. 1998;
Meixell/Gargeya 2005; Melo et al. 2009; Mula et al. 2010).
However, many strategic decisions are not subject to optimization, as they involve mul
tiple imprecise, uncertain and qualitative criteria. MCDM offers support for such strategic
decisions (cf. Montibeller/Franco 2011), allowing for the consideration of conflicting and
Die Unternehmung, 66. Jg., 2/2012 181
Aufsätze
qualitative objectives (cf. Ram et al. 2011). Wallenius et al. (2008) state that the most
cial support delivered by MCDM approaches to decision makers is probably the s
tured examination of the decision problem as part of the process. While many applicat
of such methods to SCM already exist, a literature survey of MCDM methods, allow
the consideration of qualitative information in SCM, is not available yet.
This paper aims to close this gap through a structured literature survey. We answer
research questions (RQs):
RQ1: Which supply chain management application areas are covered by suitable mul
criteria decision making approaches?
RQ2: What multiple criteria decision making trends may develop in supply chain man
ment?
To answer these questions, we analyze academic peer-reviewed articles, published fr

2000 to 2011. We use the literature platforms EBSCO HOST (Business Source Prem
and ABI/INFORM Complete. 334 papers match our search terms and 124 are relevan
the considered topic. We analyze the identified papers within the SCM application a
design, purchasing, manufacturing, distribution, collaboration, logistics, and perform
management, deriving research gaps in different SCM application areas. Future trend
MCDM in SCM are deduced through current trends in SCM and in MCDM resea
yielding promising prospective research fields.
In the following section, we give a general overview of MCDM. Section three pres
the findings of our literature study, first a general description of the developmen
MCDM in SCM in the considered time frame. The second part of section three catego
the surveyed articles by their application area in SCM and analyzes selected approache
detail. In section four, we discuss our findings critically and state current research ga
well as possible future trends of MCDM in SCM. Section five summarizes our finding
2. Multiple criteria decision making in general
2.1 Categorization of multiple criteria decision making methods
MCDM began in the 1960s. Many authors mention the contribution on goal prog
ming by Charnes/Cooper (1961) as the origin of MCDM. Multi-attributive utility th
(MAUT) is sometimes referred to as another research stream of multiple criteria prob
(cf. Dyer et al. 1992). However, other authors classify it as a method category with
MCDM methods. An early contribution on MAUT is Churchman/Ackoff (1954). In t
1970s and '80s the research streams in MCDM and MAUT evolved in close conjunctio
to each other (cf. Dyer et al. 1992). The first conference on MCDM was organiz
1972 in South Carolina at Columbia University. A more detailed description concern
the origins of MCDM, especially historical influences, may be found in Figueira et
(2005).
In categorizing different MCDM methods, there is no complete consensus between
thors. However, categorizations of MCDM methods do not differ widely. Our
egorization of MCDM methods follows Figueira et al. (2005), who distinguish multi-
jective mathematical programming, multi-attributive utility theory, outranking and
classical approaches. We chose this categorization, since it most suitably represents
search streams within MCDM. An alternative to this categorization is Wallenius et a
182 Die Unternehmung, 66. Jg., 2/2012
(2008) who distinguish between discrete alternative problems (finite often small number
of solutions) and multiple criteria optimization (high sometimes infinite number of solu
tions). This classification is related to the categorization we presented; since MAUT and
outranking approaches may be summarized under discrete alternative problems, the math
ematical programming may be referred to as multiple criteria optimization.
Multi-objective mathematical programming (MOMP) deals with optimization problems
incorporating two or more conflicting goals and is mostly concerned with quantitative or
simply quantifiable information. Well-known approaches in this area are goal program
ming and multi-objective linear programming. Goal programming approaches are normal
ly structured in the form of one objective function, which includes the weighting of the
different goals. The accurate specification of goal criterion functions are formulated with
in the constraints (cf. Steuer/Na 2003). In multi-objective linear programming, the differ
ent objectives are each formulated as an objective function, which leads to several object
ive functions, each subject to optimization (cf. Ehrgott/Wiecek 2005). Furthermore, data
envelopment analysis (DEA) is often referred to as MOMP due to its close relation to such
problems (cf. Wallenius et al. 2008).
MAUT is a further class of MCDM methods. MAUT approaches use utility theory and
apply it to problems with multiple conflicting criteria. The central idea is to create a sort
of value function relating to the decision maker's preferences. In most cases, the regarded
criteria are intangible or hardly quantifiable and the MAUT methods offer a way to objec
tify the decision maker's implicit knowledge of the problem (cf. Dyer 2005). The analyti
cal hierarchy process (AHP) and the analytical network process (ANP) (Saaty/Vargas
2006) are, in several cases, categorized as MAUT approaches (cf. Dyer et al. 1992), since
they basically use the preferences of the decision maker concerning solution alternatives
with the background of multiple hierarchical or interdependent criteria. Further ap
proaches often summarized under this topic are measuring attractiveness by a categorical
based evaluation technique (MACBETH), simple multi attribute rating techniques
(SMART), technique for order preference by similarity to ideal solution (TOPSIS) and ag
gregation - disaggregation methods also known as utilities additives (UTA).
Outranking is often described as the European counterpart to MAUT approaches in
America (cf. Wallenius et al. 2008). Based on information obtained from a decision mak
er, preferences regarding two or more solution alternatives are derived, which admit the
derivation of a ranking of the solution alternatives. Like MAUT approaches outranking
methods are mainly concerned with intangible, hardly quantifiable criteria. Well-known
approaches in the outranking class are elimination and choice expressing reality (ELEC
TRE) (see Roy 1991) and preference ranking organization method for enrichment evalua
tion (PROMETHEE) (see Brans/Vincke 1985).
A class of more recent MCDM methods, therefore, referred to as non-classical ap
proaches, incorporates fuzzy set theory, grey relational analysis and choquet integrals.
These approaches emerged in the last ten to 15 years and are concerned with situations
where information is imprecise and uncertain. Figure 1 summarizes the categorization
with respect to MCDM approaches we utilize for this review.
Die Unternehmung, 66. ig., 2/2012 183
Aufsätze
Multi objective Multi objective linear programming

mathematical Goal programming
programming Data envelopment analysis
(MOMP)
- Multi attributive utility theory

Multi attributive - Analytic hierarchy process (AHP) /
analytic network process (ANP)
— utility theory
- Simple multi attribute rating
(MAUT) technique (SMART)
Multi criteria
decision making —
methods - Fuzzy set theory
Non-classical - Choquet integrals
approaches - Grey relational analysis
- Elimination and Choice Expressing

Reality (ELECTRE)
- Preference Ranking Organization
Outranking Method for Enrichment Evaluation
(PROMETHEE)
Figure 1 : MCDM methods categorization
2.2 Multiple criteria decision making in other research and management disciplines
MCDM approaches are widely applied to various research areas. On the following pages,
selected reviews of MCDM applications are summarized. The reviews are classifiable as:
(1) general reviews that do not focus on specific methods or research areas, (2) reviews
with a focus on certain methods in various research areas and (3) reviews, which focus on
MCDM applications to business administration.
An early and frequently cited general review is Dyer et al. (1992), who discuss the state
of MCDM and analyze further developments. They identify seven different areas where
they expect promising future developments for methods in MCDM. Zopounidis/Doumpos
(2002) present a general overview with respect to classification and sorting methods and
their application area (e.g. medicine, human resource management or financial manage
ment and economics). The review focuses very strongly on methods and their develop
ment; the conclusions of the authors are rather technical. Wallenius et al. (2008) is an up
date of Dyer et al. (1992). The review contains a bibliometric analysis with respect to gen
eral applications of MCDM and shows fields for future research. They state that MCDM
publications have grown by the factor 4.2 from 1992 to 2006, while the growth of science
in general is estimated to have roughly increased by factor 2. In addition, they report that
34.9% of the articles included in their study are applied to operations research and man
agement science, 23% are applied to management and business. Furthermore, they state
an extraordinary increase of AHP applications in the last 20 years; in fact, AHP is the
most widely applied MCDM method. Bragge et al. (2010) conduct a "research profiling
study" and update as well as extent the bibliometric study of Wallenius et al. (2008). For
the analysis of more than 15,000 articles, they utilize text mining software.
In reviews with focus on specific methods, Vargas (1990) survey the AHP methodology
and its applications to several research areas, e.g. economic and management problems,
social problems as well as political problems. They find that the majority of AHP applica
tions occur in management and economics. A further review on AHP applications is pre
sented by Vaidya/Kumar (2006), who consider 150 articles and analyze 27 in detail. They
classify the application problem (i.e. selection, evaluation, allocations, planning and devel
opment, medicine and related fields etc.) and the application area (i.e. social, personal, ed
ucation, manufacturing, engineering etc.). Central results of their study: the AHP is heavi
ly applied to selection and evaluation problems, in engineering and social application
areas. Ho (2008) reviews 66 integrated AHP applications. The majority of the reviewed
AHP applications relate to the logistics (21 / 66) and fieldsl 8 / 66). The primary methods
applied with AHP are goal programming and quality function deployment. Furthermore,
Ho states that in the rate of publication in the first review period (1997-2001) to the sec
ond review period (2002-2007) is 25 to 41. He assumes a further increase in integrated
AHP applications in the following years. Liberatore/Nydick (2008) review 50 AHP appli
cations in medical and health care. They report a steady number of applications since
1997, predominantly on evaluation problems, e.g. treatment or even capital goods selec
tion. Behzadian et al. (2010) review 217 articles on the outranking method PROME
THEE, used for preference modeling. They categorize the articles with respect to their ap
plication area (e.g. environmental management, business and financial management, logis
tics and transport etc.) and survey occurring methodological extensions, i.e. integrated
PROMETHEE applications with other MCDM methods. Behzadian et al. report a steady
increase of PROMETHEE applications and a low rate of integrated approaches (15 of
217 applications). A further method specific review is presented Sipahi/Timor (2010).
They survey 232 AHP/ANP applications with respect to several research areas. Like earlier
studies Spahi/Timor state an exponential increase with respect to AHP/ANP applications
and support the statement of Ho (2008) regarding a trend to integrated AHP approaches.
The industries with the highest numbers of applications are the manufacturing industry
(76 / 232) as well as environmental management and agriculture (26 / 232).
Besides the general and the methodological specific reviews, there several surveys con
sider MCDM applications in other management disciplines. Steuer/Na (2003) examine
265 MCDM applications concerning finance and related problems. They classify the re
viewed studies by the applied method (e.g. goal programming, multiple objective program
ming, AHP etc.) and the application area (e.g. capital budgeting, working capital manage
ment, portfolio analysis, general financial planning, etc.). The bulk of contributions re
viewed by Steuer/Na apply goal programming (103 / 265) and multiple objective program
ming (83 / 265). Furthermore, the top two application areas consider portfolio analysis
(77 / 265) and general financial planning (45 / 265). A broad review of supplier-related
topics is provided by Jain et al. (2009). They concentrate on areas like supplier selection,
supplier-buyer relationships and supplier-buyer flexibility. Their review is not focused on
MCDM applications, yet many MCDM methods are included in the articles they survey
(e.g. fuzzy set theory, AHP, etc.). Ho et al. (2010) present a study on MCDM applications
in supplier selection and evaluation. From 2000 to 2008 they find 78 articles that match
their search criteria. Ho et al. report that the most applied single MCDM approach in sup
Aufsätze
plier selection is data envelopment analysis (DEA), whereas the most frequently utilized
integrated approach is the AHP. Furthermore, they state that all the approaches they re
view can consider qualitative as well as quantitative criteria.
The high number of reviews on MCDM applications general or not method-specific o
about a certain research area, reflects the strong interest of academia in this topic, con
firming the relevance of MCDM methods in several research areas. The interest of aca
demia concerning MCDM methods is not surprising from the perspective of modern dec
sion making and management practices. Pure cost minimization - as well as profit max
mization - is, in many cases, a strong simplification of the underlying problem. The pers
tent rejection of shareholder value concepts and the continual increase of sustainability a
pects will further influence decision making in the future and lead to an additional re
vance increase of MCDM approaches in several management areas. Due to the high a
plicability of MCDM approaches to different kinds of problems, MCDM approaches are
applicable to many decision problems. Generally, MOMP approaches are applied to opti
mization problems (with some exceptions), non-classical approaches are applied to prob
lems that incorporate high uncertainty, especially uncertainty regarding information qua
ty, and MAUT as well as outranking methods are applied for preference modeling. One o
our goals in this paper is to give an overview of MCDM methods and the problems they
are applied to in SCM.
3. Multiple criteria decision making in supply chain management
In this paragraph we present the results of our literature review. We start with an intro
duction to our research approach, followed by a general overview on the development of
MCDM applications to SCM. The last subsection reviews the MCDM applications in the
various SCM application areas in more detail.
3.1 Methodological approach of the literature survey
Our literature review is restricted to peer reviewed publications. This includes academi
journals and conference proceedings, but excludes books, master and doctoral theses. W
reviewed articles published in the period from 2000 to 2011. The literature query took
place on 30th April 2011. We used the databases EBSCO Host (Business Source Premier,
EconLit, Computer Source) and ABI/INFORM Complete (ProQuest). We searched within
titles and abstracts. Table 1 lists the search terms we considered. We used method unsp
cific as well as method specific MCDM search terms and SCM search terms. The search
terms within the columns were linked with each other with the operator "OR", metho
specific and unspecific search terms (column one and two) were linked with the operator
"OR", the SCM search terms (column three) were linked with the operator "AND"
Therefore each hit at least included a method specific or unspecific word and "supply
chain" or "SCM". The methodological approach of our literature survey is similar t
Glock/Hochrein (2011) as well as to Kudla/Stölzle (2011).
MCDM search terms MCDM search terms SCM search terms
method unspecific method specific

"multicriteria" AHP "supply chain"
"multi criteria" "analytic hierarchy process" SCM
"multi attribute" "analytical hierarchy process"

"multi attributive" ANP
"multiple criteria" "analytic network process"
"multiple attribute" "analytical network process"
"multiple attributive" OR ELECTRE AND
"multiattribute" fuzzy
MACBETH
PROMETHEE
SMART
TOPSIS
UTA
Table 1 : Search terms of the literature survey
Since we are especially interested in approaches for the consideration of intangible, quali
tative information in MCDM, search terms such as "goal programming" or "mathemati
cal programming" were not included directly in the literature retrieval. However, they also
were not excluded, since combinations with qualitative methods and, therefore, considera
tion of qualitative information are possible in mathematical programming approaches.
Overall, 334 papers matched the search terms; 124 were relevant to the topic.
The following three conditions with respect to the retrieved articles were evaluated for
the decision whether or not to include an article in the review:
( 1 ) usage of a multiple criteria approach,

(2) consideration of qualitative or intangible information,
(3) clear relation to SCM research.
As described in the introduction, since reviews on purely mathematical decision support

are already sufficiently available, we will focus on approaches that allow for the incorpo
ration of qualitative or intangible information. Therefore, mathematical programming ap
proaches that do not consider qualitative or intangible information are excluded from the
review. Furthermore, methods that handle pure quantitative problems, which include
qualitative information about uncertainties (e.g. fuzzy demand), are not considered (e.g.
Mahnam et al. 2009). In addition, all non multiple criteria applications of fuzzy set theory
are excluded (e.g. Kabak/Ülengin 2011). In many cases, weightings of multiple criteria
goal programming approaches are generated by means of qualitative evaluation through a
decision maker (e.g. Efendigil et al. 2008; Amid et al. 2011), in some cases, even the
weightings are computed through quantitative information within an optimization prob
Aufsätze
lern (e.g. Chan et al. 2005; Chan et al. 2006). Regarding item (3), several papers were
found which use the term "supply chain", since it is a buzzword that increases academi
impact. These papers were also excluded. We focus on publications that clearly contribute
to SCM relevant research area, e.g. purchasing, distribution or collaboration, which con
sider inter-organizational aspects.
After eliminating irrelevant contributions, the papers were classified by publication
year, journal of publication and whether or not a group decision approach or empirical
results are included. Furthermore, we analyzed the MCDM category (MOMP, MAUT
etc.), and the exact method (AHP, fuzzy set theory) of the paper. If a contribution uses
more than one method, we identified the central method (first stated) and classified the
papers considering up to three MCDM categories and methods. Additionally, we surveyed
whether the approaches are integrated. In some cases, different methods are used side by
side without interacting with each other. These approaches are classified as not integrated
The last attribute we categorized is the application area within SCM. The derivation of th
different SCM application areas starts at the strategic decision level of design, followed by
directly value adding areas, i.e. purchasing, manufacturing, distribution and logistics. We
then considered supporting areas, i.e. collaboration and performance management. How
ever, six publications were not assignable to these application areas and are therefore clas
sified as miscellaneous. Moreover, the reviewed papers in each application area were as
signed to the problem they consider (specific application area; e.g. complete network de
sign, distribution network design, etc.).
3.2 General overview of multiple criteria decision making in supply chain management
In this section we present a general review of MCDM in SCM. The analyses focus on giv
ing a compact insight on the development of the appropriate research field.
In Table 2, development of MCDM categories in SCM from 2000 to 2011 is depicted.
In addition, the lower part of the table describes shares of papers that include integrated
approaches, state case applications or group decision approaches. The number of applica
tions has significantly increased in the last six years. In 2008, there is an abrupt rise that is
hardly explainable by means of the obtained data in the literature review. One noticeable
exception is, in this year eight single contribution journals (published only one article in
the regarded research area and time frame) issued an article. However, even if the single
contribution journals are neglected for this analysis, there is still a leap. Another peculiar
ty is the high number of publications in internationally not well recognized journals in
2008. If internationally less recognized journals are neglected for evaluation, there is still
peak, but a less significant one. On the other hand, for 2011, it is expected that the num
ber of MCDM publications in SCM will exceed the number in 2008.
Regarding the method categorization, MAUT applications are clearly dominant, cer
tainly, due to the exclusion of purely quantitative methods. Nevertheless, even if purely
quantitative methods would have been considered for the review, we expect that MAUT
application would still dominate the picture. Integrated approaches represented the greater
part of the approaches already from 2003 to 2005.
Methods 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total
Total 2 3 3 7 5 7 15 13 25 14 15 15 124
Multi-attrib
utive 2 3 3 3 4 5 5 11 20 9 12 7 84
utility theory
Multi-object
ive
mathematical 1 1 1 3 1 1 2 2 12
program
ming
Non-classical 3 1 7 2 4 4 1 5 27
Outranking 1 1
Integrated 0% 33% 33% 57% 60% 57% 47% 62% 48% 79% 67% 67% 57%
approaches
Case applica 50% 0% 0% 29% 40% 14% 47% 54% 48% 50% 40% 40% 41%
tion
Group deci
sion 50% 33% 0% 0% 20% 14% 7% 23% 8% 21% 7% 13% 13%
approaches
Table 2: MCDM categories in SCM per year
Since 2009, integrated approaches constitute the bulk of contributions. Furthermore, we

reviewed whether the articles integrated a case application of the proposed methodology
to a real life problem. 41% of the papers integrate an actual case study and a further 11%
of the articles incorporate a fictive example case (not stated in the table). Additionally, we
surveyed the ratio of MCDM applications explicitly allowing for the consideration of
more than one decision maker (group decisions). 13% of the reviewed papers represent a
group decision methodology.
Table 3 shows MCDM methods applied five or more times in the regarded time frame.
The total number of applications exceeds the number of reviewed journals, since a utiliza
tion of two or more methods in a publication is considered. The methods AHP, fuzzy set
theory and ANP represent 63% of all applications. Furthermore, like Wallenius et al.
(2008) and Sipabi/Timor (2010) report in general, Table 3 presents for SCM a strong in
crease in AHP and ANP applications. Additionally, fuzzy set theory applications increased
in recent years. In 46 articles one, in 58 articles two and in 20 articles three methods are
applied. Occasionally, even four methods are employed. The increase in method applica
tions per year presents the same picture as the number of contributions per year, a strong
increase in 2006. However, the number of applications rises after 2006, instead of stag
nating like the number of articles published.
Furthermore, the methods to articles ratio (total number of applications per year divi
ded by the total number of contributions per year) in the last row of Table 3 also indicates
increasing application of two or more methods within an application.
Aufsätze
Method 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 Total
AHP 2 3 1 5 3 5 5 10 19 8 8 6 75
Fuzzy set 3 1 1 7 5 9 7 5 10 48
theory
ANP 1 1 1 2 1 2 2 5 2 17
Goal pro 1 2 1 1 2 3 2 12
gramming
DEA 1 2 2 5
Integer linear
program 1 1 1 1 1 5
ming
Multi-object
ive linear
2 2 1 5
program
ming
Total 2 4 4 11 9 13 24 24 45 28 30 28 222
Methods to
1.00 1.33 1.33 1.57 1.80 1.86 1.60 1.85 1.80 2.00 2.00 1.87 1.79
article ratio
Table 3: MCDM methods in SCM per year
Table 4 shows the 13 journals and conference proceedings that published three or more
articles in the regarded research area from 2000 to 2011 and the primary MCDM method
applied in the contribution. Overall, 49 journals contribute to the regarded research area.
Most of the listed journals are internationally well-regarded and highly ranked, in journal
rankings like "Association of Business Schools Academic Journal Quality Guide March
2010" and the "Association of Professors of Business in German speaking countries"
VHB 2011. The articles in these journals account for 62% of all the contributions in this
research field from 2000 to 2011. In the five most publishing journals of MCDM in SCM,
the European Journal of Operational Research (EJOR), International Journal of Produc
tion Economics (IJPE), and International Journal of Production Research (IJPR) are
known for their stronger connection to operations research topics. If purely quantitative
approaches would have been considered, too, it is assumed that EJOR would have been
positioned at the third place or even higher. The contributions within the journals EJOR,
IJPE, and IJPR correspond closely to their reputation. Thus, the focus lies on methodologi
cal aspects. Regarding the dominant methods in the top 2 journals, IJPE and IJPR, it is
evident that, besides MAUT methods, IJPE mostly publishes mainly non-classical ap
proaches. Therefore, IJPE mainly contributes to research streams that consider imprecise
and incomplete information, like most non-classical MCDM methods do. On the other
side, IJPR focuses on mathematical programming MCDM methods, which primarily treat
optimization problems. The contributions in the journals Production Planning & Control
and Supply Chain Management: An International Journal, are more concerned with con
tent-related aspects.
Non
Journal or conference proceeding MAUT MOMP Outrank- Total
classical ing '"J
j International Journal of Production
11 1 6 18
Economics
2 International Journal of Production 8 5 1 14

Research
3 7
Production 1
Planning & 8 Con
^ Supply Chain Management: An In 5 1 6

ternational Journal
^ European Journal of Operational 3 2 5

Research
g International Journal of 4 4
Management &c Decision Making
-j Benchmarking: An International 3 1 4
Journal
g Computers & Industrial Engineer 3 3

ing
9 Computers in Industry 2 1 3
HE Annual Conference. Proceed

2 \ 3
ings
International Journal of Physical

11 Distribution & Logistics Manage 2 1 3
ment
12 Journal of Cleaner Production 1 1 1 3
^ Journal of the Operational Re 1 1 1 3

search Society
Table 4: Top 13 journals and conference proceedings
The rows in Table 5 present the predominant method category as well as the exact meth
od. The columns show the second method category in combined approaches and the exact
method. The category "no MCDM" incorporates approaches like sensitivity analysis or
balanced score card. Applications of three or more methods in one article are not consid
ered in this analysis. The proportion of non-single approaches in this table is higher than
the proportion of integrated approaches. In some cases, different single approaches are ap
plied besides each other, but do not interact and are not integrated. As apparent, AHP and
ANP applications are the dominant methods within the reviewed articles, followed by fuz
zy set theory and goal programming approaches. With respect to combined approaches,
joint AHP and fuzzy set theory approaches are clearly dominant. These two methods also
represent the approaches most often combined with other methods. The second ranked
combination is AHP and goal programming, the top three method combination AHP and
integer linear programming.
Aufsätze
3 4 1 1 4 2 17 2 1
9 2 1
21
Single ap proaches
3~
No MCDM
12 1 1 1
Others
Out
ranking
11
18 2 1
Non-clas ical
cr H rt' on era , n. 3 i
CTQ 3 2 3 §■ 3 w
MOMP 11
3 i o' T3 i 1 T3 O 2 3 3 3 3 a 5'00 CPS
„ -* era' p 1 641
MAUT
721 3219 21 4612
Multi-objectiveintegrlinearoptimzation1 Multi-objectivelinearprogram ing Non-clas ical Total TableS:MCD methodcmbinatonsi SCM
Table 6 represents the number of applications to different application areas in SCM and
the table lists the articles published in this area. The application areas map important
functions in SCM based on the value adding process and supporting activities, as long as
MCDM methods have been applied to this functions. The purchasing area is the most fre
quented area, followed by logistics and performance management.
Application Total number

area
Papers
Design [3], [10], [36], [43], [50], [53], [72], [76], [88], [96], [104] 11
[4], [5], [14], [16], [18], [19], [20], [23], [25], [27], [28],
[30], [31], [40], [51], [55], [56], [57], [58], [60], [63], [64],
[65], [66], [67], [70], [71], [73], [74], [75], [78], [81], [82], 54
Purchasing
[83], [84], [85], [86], [87], [93], [95], [98], [100], [101],
[103], [110], [111], [112], [115], [116], [117], [119],
[120], [121], [123]
Manufacturing [6], [7], [33], [54], [77], [90], [91], [102], [109] 9
Distribution [22], [68] 2
Collaboration [8], [9], [26], [35], [46], [69], [79], [80], [89], [107] 10
[15], [17], [29], [32], [34], [37], [41], [42], [47], [48], [49], 18
Logistics
[52], [59], [62], [94], [106], [114], [122]
Performance [1], [2], [11], [12], [13], [21], [24], [38], [44], [45], [99], 14
management [105], [108], [113]
Miscellaneous [39], [61], [92], [97], [118], [124] 6
Total 124
Table 6: Application areas of MCDM in SCM
The next subsection presents a more detailed description of applications of MCDM meth
ods to the different SCM application areas.
3.3 Review of multiple criteria decision making with respect to application areas in supply
chain management
In this section, we provide a detailed analysis of selected papers within each SCM applica
tion area. At the beginning of each subsection, we present a table giving an overview of
the relevant SCM application area.
3.3.1 Design
Table 7 represents the application area "design" summary. Within each specific applica
tion area, there is no clear focus. Complete networks, as well as distribution and manufac
turing networks, are also considered. The reviewed papers considered only supply net
works in holistic approaches (complete networks); supply networks are not listed in Table
7. The most applied method combination, AHP and integer linear programming occurs
due to the frequent optimization problems in this area. In comparison with other applica
Aufsätze
tion areas, the AHP method takes a dominant position within the design area only compa
rable to the purchasing area. The share of integrated approaches and papers with case
studies differ only slightly from the averages of the whole population. The journal with
the highest number of contributions from 2000 to 2011 is the International Journal of
Management & Decision Making (2 /11).
Share of inte Case studies

Specific application Paper Most applied method
area count or method combination grated ap (share of total
proaches no.)
Distribution network 3 AHP 67% 67%
Complete network 3 AHP 67% 0%
Manufacturing net 3 AHP 0% 33%

work
Reverse logistics 2 AHP 100% 100%

network design
Total 11 AHP 55% 45%
Table 7: Overview SCM
3-3-2 Purchasing
Table 8 represents the

area purchasing, suppli
54 papers devoted to t
deviate significantly f
share of integrated ap
(57%). This indicates, t
than the average appro
purchasing are the Int
national Journal of Pro

Specific
Paper Most applied method
application
proaches no.)
Supplier selection 44 AHP & Fuzzy set theory 70% 36%
Supplier evaluation 6 AHP 33% 17%
Software selection 2 AHP 100% 50%
Supplier risk assess 2 AHP 50% 50%

ment
Total 54
AHP, 67% 35%
AHP & Fuzzy set theory
Table 8: Overview SCM application area "purchasing"
3.3.3 Manufacturing
Table 9 represents the summary of the application area "manufacturing". Regarding the
specific application area in manufacturing, the focus of MCDM applications is in out
sourcing and production planning. The two main methods are AHP and Goal program
ming. The latter is an indicator for a high number of optimizations concerning production
planning. A very mixed application of methods is quite striking within the manufacturing
area. The share of integrated approaches is significantly lower and the share of papers
with case studies is noticeably higher than in the population. The journals with the highest
number of contributions are again the International Journal of Production Economics (2 /
9) and International Journal of Production Research (2 / 9).
Case studies
Specific application
area
count or method combination ^ra e (share ratecf
of total a^
proaches no.)
Goal programming & 33% 33%

Outsourcing
ANP, Smart
AHP, ANP, Goal Program 33% 100%

Production planning
ming
Collaborative Multi-objective linear pro 0% 0%
production planning gramming
Service and
manufacturing 1 AHP & System dynamics 100% 0%
optimization
Sustainability Fuzzy set theory 0% 100%
Total
AHP, 33% 56%
Goal programming
Table 9: Overview SCM application area "manufacturing"
3.34 Distribution
Table 10 represents the summary of the application area "distribution". Only two con
butions of all 124 reviewed articles concern distribution problems. Both consider distr
tion planning problems. Certainly, more MCDM applications may be found in this ar
However, they are often purely quantitative and therefore not considered in this rev
Both articles chosen reveal a different methodological approach. Among journals con
buting to this area, the International Journal of Computer Integrated Manufacturing
the International Journal of Production Research published each one article in this
application area.
Aufsätze

proaches no.)
Multi-objective linear pro

2 gramming & Fuzzy set 50% 50%
Distribution planning
theory,
AHP 8c Genetic algorithm
Multi-objective linear pro

Total 2 gramming & Fuzzy set 50% 50%
theory,
AHP & Genetic algorithm
Table 10: Overview SCM application area "distribution"
3-3-5 Collaboration
Table 11 presents the summary of the application area "collaboration". Besides infor
tion sharing, horizontal collaboration between supply chains is the specific applicati
area with the highest number of contributions. Since collaboration is a rather soft an
tangible application area, AHP as well as AHP in combination with fuzzy set the
emerge unsurprisingly as the most applied method. Again, the share of integrated pa
incorporating case studies does not significantly deviate from the population, althoug
is slightly higher in both categories. The journals with the highest number of contribution
in this area are the International Journal of Production Economics (2 / 10) and Produc
Planning & Control (2 / 10).

proaches no.)
Information sharing 4 AHP & Fuzzy set theory 100% 25%
Horizontal collabo
3 AHP 33% 67%
ration
Agile partnerships 1 Fuzzy set theory 0% 100%
Integration 1 Fuzzy set theory 0% 100%
Process transforma
1 AHP & QFD 100% 100%
tion
Total 10
AHP, 60% 60%
Table 11: Overview SCM application area "collaboration"
3.3 6 Logistics
Table 12 represents the application area "logistics" summary. Like in the purchasing ar
in the application area logistics, partner selection in form of 3PRLP (third party reverse
gistics provider) and 3PL selection are dominating the field. The selection of partners is
ten strongly dependent on intangible, qualitative criteria. Therefore, the most applied meth
od (combination) AHP as well as integrated AHP and fuzzy set theory approaches do not
surprise. However, the share of integrated approaches and the share of papers including
case studies are significantly lower than in the population. The International Journal of Pro
duction Economics (3 /18) has the highest number of contributions in the area of logistics.

proaches no.)
3PRLP selection 6 AHP & Fuzzy set theory 67% 17%
3PL selection 5 AHP 20% 40%
Agile SC 2 ANP, Fuzzy set theory 0% 50%
4PL evaluation 1 Choquet integral 100% 0%
Customer service
1 Fuzzy set theory 100% 100%
management
SC effectiveness 1 ANP 0% 100%
Selection of
global logistics strat 1 AHP & Fuzzy set theory 100% 100%
egy
Supply chain devel 1 AHP 0% 0%

opment
Total 18
AHP, 44% 39%
Table 12: Overview SCM application area "logistics"
3-3-7 Performance management
Table 13 presents the summary of the application area "performance management".

this application area, most contributions have no special focus and consider supply ch
performance management generally. Hence, the methods applied set out a heterogene
picture. As far as the share of integrated approaches and papers including case studies
Share of inte
area count or method combination grated ap
proaches
No special focus 9 AHP, AHP & BSC 67% 33%
Sustainability 3 MAUT 33% 33%
Benchmarking of SCs 1
DEA & PROMETHEE 100 % 100%
Reverse logistics 1 AHP & DEA 100% 100%
Total 14
AHP, 64% 43%
AHP & BSC
Table 13: Overview SCM application area "performance management"
Aufsätze
significant deviations from the population are apparent: both stay slightly above average.
The most contributing journals in this area are Production Planning &c Control (2 / 14)
and Supply Chain Management: An International Journal (2 /14).
3.3.8 Miscellaneous
Table 14 presents the summary of MCDM applications not assignable to other applica
tion areas. The papers subsumed under 'miscellaneous' either do not represent a typical
task in SCM, or are numbered too low to build an application area of their own in this
literature survey. A general description is not very meaningful, since the problems presen
ted differ strongly from each other. The AHP method is clearly dominant.

count or method combination grated ap (share of total
proaches no.)
Project selection 3 ANP 33% 0%
Risk management 1 AHP 0% 100%
SC competitiveness
positioning in ship 1 AHP & Fuzzy set theory 100% 0%
building
SC quality manage 1 AHP 0% 100%

ment
Total 6 AHP 33% 33%
Table 14: Overview SC
4- Discussion
In this section we will

the earlier sections an
Regarding limitation
peer-reviewed articles
selected; furthermore
study of MCDM met
fore, applications used
tion have not been ex
word search in the da
Source) and ABI/INFO
articles did not match our search terms or were not listed in the searched databases. How
ever, we are quite confident about the thoroughness of our study. Finally, we scrutinized
only methods that explicitly allow for the consideration of qualitative or intangible infor
mation within the decision process. Therefore, purely quantitative methods, as well as
methods using only qualitative information for the estimation of uncertainties for an input
variable (e.g. fuzzy demand) are excluded.
For the derivation of future trends of MCDM in SCM, two triggers can be distinguish
ed:
a) current and future developments in SCM research offer new application areas or re
quire the consideration of criteria not yet considered, and
b) evolution of MCDM methods may offer new application opportunities in SCM.
The methodological proceeding for the derivation of research gaps and future trends fol
low; first, we evaluated the results of our literature analysis and deduced research gaps.
Independent from future developments in SCM or MCDM, these gaps need to be closed
and require further academic attention. Second, we considered future developments in
SCM and resulting new application areas or areas which may experience a strong shift in
its needs, or criteria that must be considered. This investigation yields possible future
trends of MCDM in SCM arising from alterations in SCM research. Third, we regarded
new MCDM methods which may be useful to SCM research.
In the following we will briefly analyze which future trends of MCDM applications in
SCM may emerge from these two triggers, considering the results from the literature re
view.
4.1 Current state and future developments in SCM research
After considering current and future developments in SCM, we first summarize our find
ings from the previous section and show research gaps in current and future SCM re
search. We support and augment our line of argument through a literature review of cur
rent SCM research (Giunipero et al. 2008) and a Delphi study on future SCM trends (Mel
nyk et al. 2009).
The general overview of MCDM methods in SCM shows that this research field is rapidly
growing. In 2011 we expect about 30 publications on MCDM in SCM; 15 articles will
already be available by the end of April exceeding the highest number in 2008 (25 publi
cations). Furthermore, we assume that the trend toward combining methods will increase,
especially among approaches that combine readily with others. As far as results from the
literature review, this applies particularly to AHP, ANP and fuzzy set theory.
As for methodological tendencies of individual application areas, it is no surprise that
with logistics' particular focus on optimization, purchasing focuses more on methods al
lowing for the consideration of qualitative and imprecise information. The share of inte
grated approaches is an indicator of the approaches' sophistication and varies between the
application areas. Purchasing is the most highly developed application area when ranked
by number of publications and share of integrated approaches. In contrast, the application
area distribution is largely ignored by academia. Overall, only five contributions are con
cerned with distribution (counting three papers on distribution network design, assigned
to the application area design). This is surprising, since combinations of MOMP and
MAUT or outranking approaches may offer significant advantages over purely quantita
tive approaches in this area. However, most of the specific application areas and problems
are not surveyed in great detail. Only topics like supplier selection and evaluation, 3PL
and 3PRLP selection - and general performance management - are surveyed by high num
bers of contributions. Particularly surprising is the lack of papers on risk management.
Overall, there are only three articles, two on supplier and one on general risk manage
ment. Risks are hard to identify and even harder to quantify. Therefore, AHP, ANP and
Aufsätze
fuzzy set theory approaches are expected to offer great potential for application in this
area.
To support and complement our argument, we use results

comprehensive SCM literature review available. Giunipero et
cles from nine SCM peer-reviewed journals. However, their
ments in SCM research focuses on research methods that hav
the state of knowledge in SCM. Therefore, we refer to Meln
trends in SCM research. Based on a literature review, they c
grating academics as well as practitioners. Appropriate pract
the AMR research list of the top 25 supply chain firms; academ
American universities with a good reputation in SCM.
Giunipero et al. (2008) state that the most frequented SCM r
gy. They describe it as "strategic alignment between the supp
and refer to content like competitive advantage and risk man
was already identified as an underrepresented area. Melnyk
chain disruption risk" as the single most important area wit
Therefore, further MCDM approaches for risk management, f
not, would be helpful for SCM research.
Aligning various supply chain strategy areas within the sup
tive positioning (advantage) are completely neglected by M
tance of this area is also stated by Melnyk et al. (2009). They f
concerned with efficiency related topics (e.g. cost minimization
increasingly become the focus of SCM and strategy related is
of an inter-organizational supply chain strategy, including a
proach might be a possible application area for MCDM. Fu
trend of supply chain differentiation (cf. Hilletofth 2009) wi
topics like supply chain strategy and competitive positioning.
concerns the concurrent operation of several parallel supply c
ciently satisfying customer needs. Firms like AT Kearney (Ma
Company (Malik et al. 2011) and Gartner (Davis 2010) report h
it way into SCM. Issues that might arise here include the righ
chains a company should operate. One paper in the review exa
ing in the shipbuilding industry (Zangoueinezhad et al. 2011
cluding topics like supply chain differentiation, alignment of
competitive positioning, represents an application area for fu
Supply chain performance management is an application are
attention (14 papers). Certainly, at first glance, one would d
covered and offers - per se - potential for further MCDM a
trend of supply chain differentiation will demand new perfor
Agarwal et al. (2006) offer a first suggestion how such perfor
might be built. However, this approach would have to be adap
entiated supply chain. Performance management presents an
approaches might be needed.
In summary our analysis revealed two research gaps in MCDM applications in SCM re
quiring further consideration:
i. Distribution in a supply chain context, including distribution network design as well as
(collaborative) distribution planning, and
ii. Supply chain risk management, including a pure focus on the supply side and consider
ation of the whole supply chain (end-to-end).
Furthermore, present trends in SCM research may initiate a need for new MCDM applica
tions in these areas:
iii. Supply chain strategy, including supply chain differentiation, competitive positioning
and alignment of supply chain strategy, and
iv. Supply chain performance management, especially for the performance management of
several parallel supply chains.
4.2 Evolution of MCDM methods
As described in section 2.1, research on MCDM is growing rapidly; new methods and in
novative applications of existing methods are common. In this paragraph, we will discuss
which new SCM applications could be offered by future MCDM developments. We sup
port our argument using a meta review of developments in MCDM (Wallenius et al.
2008).
Mental models, sometimes also referred to as decision maps, offer good prospects for
further MCDM research (cf. Wallenius et al. 2008; Comes et al. 2011). Mental models at
tempt to measure the perception of a decision maker and how different attributes of a sol
ution alternative may affect an objective. The model estimates how attributes of different
solution alternatives might impact specific consequences related to value concepts. Mental
models may introduce a new era in decision making in SCM. Where current decisions are
formulated solely to a specific problem, mental models focus on the effect of the selected
solution on a higher objective level. For example, current decision problems with supply
chain network design focus, in most cases, on cost minimization. A mental model would
be formulated considering a higher objective level, e.g. maximize the possible achievable
customer satisfaction while holding costs at a reasonable level. Supplier selection problems
might not be formulated as "which supplier meets our requirements" but as "which sup
plier has the most positive impact on the overall quality and on revenues as well as prof
it." An example for such a model is Montibeller et al. (2008). These approaches are very
general and are therefore applicable to a wide range of decision problems. We expect that
we will see first applications of mental SCM models in the near future.
A further recent research area in MCDM is revisiting targets, which is especially suita
ble for decision problems concerning achievement of a specific target value (cf. Tsetlin/
Winter 2007; Wallenius et al. 2008). Such approaches are especially interesting for suppli
er selection. Certain criteria may be interpreted as qualifying criteria and therefore repre
sent a binary criteria (possible values 1 and 0), where the supplier is evaluated with a 1 if
he satisfies the criteria and a 0 if he does not. Combined with other criteria, which meas
ure the actual goal attainment, this might be a worthwhile approach and could also func
tion for other areas like supply chain design: i.e. does a location match certain binary cri
teria, or how high is the goal attainment of other criteria. Revisiting targets are imple
mentable in currently existing approaches and thereby represent a methodological ad
vancement. Also in this area, first implementations in SCM can be expected soon.
Aufsätze
Wallenius et al. (2008) state that due to the progress made in computer design with re
spect to computing power, optimization problems with high computational requirements
will be an interesting MCDM research area. Quadratic and stochastic programming are
such areas. In this optimization class, one or two objective functions may be quadratic an
quadratic objective functions may also represent variance and thus uncertainty. Such
problems are not computable yet, but will be in the near future (cf. Ebrgott et al. 2009).
Like revisiting targets, this trend represents a methodological advancement. However, it
only implementable in MOMP approaches and therefore not as broadly applicable as re
visiting targets; it might only be utilized in SCM application areas where optimization ap
proaches are common. These application areas include supply chain design, distribution
and manufacturing planning. Nevertheless, this further development of optimization ap
proaches might be useful for these application areas.
Further mathematical developments with good prospects in MCDM research are evolu
tionary multi objective optimization approaches, which are search algorithms (heuristics)
that basically imitate natural evolution (cf. Wallenius et al. 2008; Rachmawati/Srinivasa
2010). Genetic algorithms are a very common approach in this area. Three articles on g
netic algorithms have been considered in our study. Chan/Chung (2004) regard distribu
tion planning problem, Oh dar/Ray (2004) present an approach for supplier evaluation in
the application area purchasing, and Sha/Che (2006) introduce a procedure for supply
chain design of a complete network. Since genetic algorithms are heuristics for quantit
tive problems, they are especially suitable for the application areas of supply chain design
distribution and manufacturing planning, like quadratic and stochastic programming.
To summarize: in MCDM research advancements, we expect significant impact o
MCDM approaches in SCM, especially from two areas:
i. Mental models and
ii. Revisiting targets.
Due to their wide adaptability, these MCDM research areas offer high potential for a
plication to SCM research. Certainly, quadratic and stochastic programming, as well
evolutionary multi objective optimization, will be utilized in SCM. However, mental mo
els and revisiting targets, particularly in combination with other MCDM methods, off
higher potential for application in SCM and better opportunities for initiating MCDM
search trends in SCM.
5. Conclusion
This paper is a literature survey on MCDM applications in SCM. MCDM and SCM are
both rapidly growing research fields. However, a structured analysis with respect to
MCDM approaches in SCM is not yet available. We focused on approaches allowing for
the consideration of qualitative information. Overall, 334 articles matched our search cri
teria in the time frame from 2000 to 2011. We categorized these papers according to the
year and publishing journal, analyzed SCM application areas, classified the MCDM meth
ods and studied whether two or more methods were combined, group decision procedure
was incorporated, or if a case study application provided support. The main conclusion of
our analysis is: publications on MCDM in SCM are rapidly growing, especially combined
approaches. Based on our findings, we suggest further research, especially in the applica
tion areas of distribution in SCM context, supply chain risk management, strategy and
performance management. Looking to the future of MCDM research, we expect that men
tal models and revisiting targets have the potential for establishing a new trend of MCDM
applications in SCM. For business practice as well as for academia, this article offers a val
uable overview regarding MCDM methods for SCM decision problems.
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Patrick Beck ist wissenschaftlicher Mitarbeiter am Lehrstuhl für Logistikmanagement der

Universität St.Gallen.
Erik Hofmann, Prof. Dr., ist Vize-Direktor am Lehrstuhl für Logistikmanagement und As
sistenzprofessor an der Universität St. Gallen.
Anschrift: Universität St.Gallen, Lehrstuhl für Logistikmanagement (LOG-HSG), Dufour

strasse 40a, 9000 St. Gallen, Schweiz, Tel.: +41 (0)71/224-7280, Fax: +41
(0)71/224-7315; E-Mails: [email protected], [email protected]
Die Autoren danken den anonymen Gutachtern für ihre wertvollen und konstruktive
Hinweise zur Weiterentwicklung des Beitrags.

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Multiple criteria decision making in supply chain management — Currently available

methods and possibilities for future research

Patrick Beck und Erik Hofmann

Literature review, Supply chain management, Multiple criteria deci

Entscheidungen im Supply Chain Management (SCM) unterliegen

l8o Die Unternehmung, 66. Jg., 2/2012

A properly functioning supply chain management (SCM) is crucially important in dealing

Die Unternehmung, 66. Jg., 2/2012 181

To answer these questions, we analyze academic peer-reviewed articles, published fr

2. Multiple criteria decision making in general

2.1 Categorization of multiple criteria decision making methods

182 Die Unternehmung, 66. Jg., 2/2012

Die Unternehmung, 66. ig., 2/2012 183

Multi objective Multi objective linear programming

- Multi attributive utility theory

- Elimination and Choice Expressing

Figure 1 : MCDM methods categorization

184 Die Unternehmung, 66. Jg., 2/2012

Die Unternehmung, 66. Jg., 2/2012 185

3. Multiple criteria decision making in supply chain management

3.1 Methodological approach of the literature survey

186 Die Unternehmung, 66. Jg., 2/2012

MCDM search terms MCDM search terms SCM search terms

method unspecific method specific

"multi attribute" "analytical hierarchy process"

"multiple criteria" "analytic network process"

"multiple attribute" "analytical network process"

"multiple attributive" OR ELECTRE AND

Table 1 : Search terms of the literature survey

( 1 ) usage of a multiple criteria approach,

As described in the introduction, since reviews on purely mathematical decision support

Die Unternehmung, 66. Jg., 2/2012 187

188 Die Unternehmung, 66. Jg., 2/2012

Table 2: MCDM categories in SCM per year

Since 2009, integrated approaches constitute the bulk of contributions. Furthermore, we

Die Unternehmung, 66. Jg., 2/2012 189

Table 3: MCDM methods in SCM per year

190 Die Unternehmung, 66. Jg., 2/2012

2 International Journal of Production 8 5 1 14

^ Supply Chain Management: An In 5 1 6

^ European Journal of Operational 3 2 5

g Computers & Industrial Engineer 3 3

HE Annual Conference. Proceed

International Journal of Physical

12 Journal of Cleaner Production 1 1 1 3

^ Journal of the Operational Re 1 1 1 3

Table 4: Top 13 journals and conference proceedings

Die Unternehmung, 66. Jg., 2/2012 191

721 3219 21 4612

Multi-objectiveintegrlinearoptimzation1 Multi-objectivelinearprogram ing Non-clas ical Total TableS:MCD methodcmbinatonsi SCM

192 Die Unternehmung, 66. Jg., 2/2012

Application Total number

Distribution [22], [68] 2

Table 6: Application areas of MCDM in SCM

Die Unternehmung, 66. Jg., 2/2012 193

Share of inte Case studies

Complete network 3 AHP 67% 0%

Manufacturing net 3 AHP 0% 33%

Reverse logistics 2 AHP 100% 100%

Table 7: Overview SCM