Supplier selection with the PSI method

Abstract

The Preference Selection Index (PSI) method is a powerful tool in multi-criteria decision making (MCDM), which has gained popularity due to its ability to evaluate alternatives without the need to assign relative weights to the criteria. This makes it an ideal choice for complex processes such as supplier selection, where decision criteria are often multiple and diverse, such as cost, quality, reliability, delivery time, among others. In the context of this research, the PSI method will be applied to optimize supplier selection, offering an objective and simplified approach that reduces subjectivity in the process. The Preference Selection Index (PSI) method is a powerful tool in multi-criteria decision-making (MCDM) that has gained popularity for its ability to evaluate alternatives without the need to assign relative weights to the criteria. This makes it an ideal choice for complex processes like supplier selection, where decision criteria are often numerous and varied, including cost, quality, reliability, and sustainability. In a dynamic business environment, integrating multi-criteria approaches, such as the PSI, not only enhances the accuracy of supplier evaluations but also enables organizations to better align with their strategic needs. Moreover, considering sustainable factors has become increasingly important, highlighting the need for selection methods that balance operational efficiency with environmental impact. This study aims to validate the effectiveness of the PSI method compared to traditional approaches, ensuring that the selection process aligns with business objectives and contributes to more effective supply chain management. Companies seeking to optimize their operations and supply chain require tools that allow them to make informed decisions, as choosing the right supplier directly impacts operational performance. This study seeks to validate the effectiveness of the PSI method compared to other traditional approaches, ensuring that the selection process is consistent with business needs and objectives.