Selection of suppliers in mining. Litieras case in Argentina

Abstract

In lithium mining in the Argentine Northwest, mining companies are located strategically, depending on the availability of brines, but far from urban centers. Therefore, when selecting the right provider, it is necessary to consider multiple criteria. This paper presents the first multi-criteria decision model for selecting suppliers in the lithium industry in the Argentine Northwest, in which a criterion of great importance for the region is considered and which is novel for the sector. From it, companies can select the best supplier through a ranking of qualifications without the variation that the preference of the person making the decision supposes. Fuzzy Analytical Hierarchy Process (FAHP) methods were integrated with Fuzzy Logic and the SCOR model. Therefore, it can be used in environments of uncertainty and ambiguity, combining quantitative and qualitative information. Six criteria were defined with three levels of assessment: Quality, Price, Financial Solidity, Performance, After-sales Service, and Belonging. 729 combinations with possible selection results were obtained. This model was applied to four local suppliers by evaluating the input criteria. The result of the output variable, Supplier Preferability, was obtained, and from this, it was established which of them should be selected. This model is expected to contribute to the decision-making of mining companies in the area.