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We discussed a simulation-optimization approach using genetic algorithm to the supplier selection problem. The problem consists in selecting a portfolio of suppliers from a set of preselected candidates. The supplier selection is a multicriteria problem that includes both qualitative and quantitative criteria. In order to select the best suppliers it is crucial to make a trade off between these tangible and intangible criteria, some of which may be contradictory. The proposed approach uses discrete-event simulation for performance evaluation of a supplier portfolio and a genetic algorithm for optimum portfolio identification based on performance indices estimated by the simulation. Numerical results on a real-life case study are presented.