Supplier Selection Using Integrated Fuzzy TOPSIS and MCGP: A Case Study

Abstract This study provides an overview of the fuzzy TOPSIS and Multi-Choice Goal Programming (MCGP) methods for Multi-Criteria Decision-Making (MCDM) problem under uncertain environments. Supplier selection is mostly a complex multi-criteria problem which consists of qualitative and quantitative criteria. Those criteria should be considered advertently as a final decision in comprehensive and objective supplier selection as well. This study deal with the optimum decision making for selecting supplier and allocating order by applying the proposed method of integrated fuzzy TOPSIS and MCGP (Multi-Choice Goal Programming). To deal with the uncertain and imprecise judgment of decision makers, a Fuzzy TOPSIS is utilized to express it by triangular fuzzy numbers. The final supplier selection and order allocation are obtained by integrating the closeness coefficients to the MCGP model. A numerical example is given to clarify the main results developed in this paper.

[1]  Srinivas Talluri,et al.  A note on "A methodology for supply base optimization" , 2005, IEEE Transactions on Engineering Management.

[2]  N.-E. Dahel.  Vendor selection and order quantity allocation in volume discount environments , 2003 .

[3]  Gholamhossein Mehralian,et al.  Developing a Suitable Model for Supplier Selection Based on Supply Chain Risks: An Empirical Study from Iranian Pharmaceutical Companies , 2012, Iranian journal of pharmaceutical research : IJPR.

[4]  Xiaowei Xu,et al.  Multi-criteria decision making approaches for supplier evaluation and selection: A literature review , 2010, Eur. J. Oper. Res..

[5]  Rammohan Kasuganti,et al.  Purchasing materials in the supply chain: managing a multi-objective task , 2001 .

[6]  S. Talluri,et al.  Optimization models for buyer‐supplier negotiations , 2008 .

[7]  Srinivas Talluri,et al.  Multiproduct, Multicriteria Model for Supplier Selection with Product Life-Cycle Considerations , 2006, Decis. Sci..

[8]  M. Setak,et al.  Supplier Selection and Order Allocation Models in Supply Chain Management: A Review , 2012 .

[9]  Srinivas Talluri,et al.  A Supply Risk Reduction Model Using Integrated Multicriteria Decision Making , 2008, IEEE Transactions on Engineering Management.

[10]  Seyed Hassan Ghodsypour,et al.  A decision support system for supplier selection using an integrated analytic hierarchy process and linear programming , 1998 .

[11]  Hing Kai Chan,et al.  Development of the supplier selection model—a case study in the advanced technology industry , 2004 .

[12]  Shuo-Yan Chou,et al.  A decision support system for supplier selection based on a strategy-aligned fuzzy SMART approach , 2008, Expert Syst. Appl..

[13]  David L. Olson,et al.  Comparison of weights in TOPSIS models , 2004, Math. Comput. Model..

[14]  C. Kahraman,et al.  Multi‐criteria supplier selection using fuzzy AHP , 2003 .

[15]  Ying-Ming Wang,et al.  Fuzzy TOPSIS method based on alpha level sets with an application to bridge risk assessment , 2006, Expert Syst. Appl..

[16]  Chen-Tung Chen,et al.  Extensions of the TOPSIS for group decision-making under fuzzy environment , 2000, Fuzzy Sets Syst..

[17]  Weijun Xia,et al.  Supplier selection with multiple criteria in volume discount environments , 2007 .

[18]  Samuel H. Huang,et al.  Comprehensive and configurable metrics for supplier selection , 2007 .

[19]  F. Chan,et al.  Global supplier development considering risk factors using fuzzy extended AHP-based approach , 2007 .

[20]  C. Weber.  A data envelopment analysis approach to measuring vendor performance , 1996 .

[21]  Hsing-Pei Kao,et al.  An integrated fuzzy TOPSIS and MCGP approach to supplier selection in supply chain management , 2011, Expert Syst. Appl..

[22]  Gary W. Dickson,et al.  AN ANALYSIS OF VENDOR SELECTION SYSTEMS AND DECISIONS , 1966 .

[23]  Ge Wang,et al.  Product-driven supply chain selection using integrated multi-criteria decision-making methodology , 2004 .

[24]  Madjid Tavana,et al.  A supplier selection and order allocation model with multiple transportation alternatives , 2011 .

[25]  Seyed Ahmad Yazdian,et al.  Vendor Selection Using a New Fuzzy Group TOPSIS Approach , 2009 .

[26]  F. Liu,et al.  The voting analytic hierarchy process method for selecting supplier , 2005 .

[27]  Jennifer Blackhurst,et al.  AIDEA: a methodology for supplier evaluation and selection in a supplier-based manufacturing environment , 2007, Int. J. Manuf. Technol. Manag..

[28]  David Asamoah,et al.  AHP Approach for Supplier Evaluation and Selection in a Pharmaceutical Manufacturing Firm in Ghana , 2012 .

[29]  Jitendra Kumar,et al.  A Hybrid Method for Vendor Selection using Neural Network , 2010 .

[30]  Ching-Ter Chang,et al.  On the mixed binary goal programming problems , 2004, Appl. Math. Comput..

[31]  Ching-Ter Chang,et al.  Multi-choice goal programming , 2007 .

[32]  W. H. Ip,et al.  Combining scoring method and fuzzy expert systems approach to supplier assessment: a case study , 2002 .

[33]  N. Ismail.  International Journal of Business and Management , 2013 .

[34]  Sai Hong Tang,et al.  TOPSIS and fuzzy multi-objective model integration for supplier selection problem , 2008 .

[35]  S. Talluri,et al.  A Model for Strategic Supplier Selection , 2002 .

[36]  Eddie Anderson,et al.  Operations Management—Strategy and Analysis , 1987 .