In the global competitiveness and growing market environment, “Actual competition is not between firms against firm, than supplier against supplier”. Globally in the fastest market development world gets closer and closer. Consumers prefer fast delivery, economical product, excellent service and high quality product with desired service level. For successful management of this supply chain, supplier considered as the base source for all processes. Therefore, an efficient supplier selection and evaluation process needs to be incorporate. The main purpose of this paper is to provide an extensive state-of-the-art literature review and critique of the studies related to various aspects of supplier selection problem over the past two decades. Research papers appearing in the reputed and leading international journals from 1991 to 2011 are gathered and analyzed. Primary focus is given on more than 200 published and unpublished works. It has been referred extensively to carry out state-of-the-art review for supplier selection problem. Finally, paper provides future perspective based on current research trends available in the published literature.

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