Supplier Selection Using MCDM Method in TV Manufacturing Organization

The aim of this study was to provide an analytical tool to evaluate and select the best supplier(s)/vendor(s) in fuzzy environment for Television (TV) manufacturing organization. A hierarchy through which decision makers can bring about a comparison among the suppliers was worked out and software for the same was developed. The methodology for selection was based upon multiple criteria decision making/multiple attribute decision making (MCDM/MADM) method using technique for order preference by similarity to ideal solution (TOPSIS). MCDM approach and application of TOPSIS proved to be a powerful technique for rapid, performance evaluation, comparative assessment and selection of supplier(s). Biasness in decision making process was avoided using weights for DM’s based on their proficiency in the problem under consideration. The suppliers were evaluated and selected on the basis of criteria/attributes (quality, delivery, price, and suggestion acceptance) and weights were assigned (0.5, 0.3, 0.1, and 0.1) to them. The ranking/selection order of ten suppliers (alternatives) was determined as C4, C5, C10, C7, C2, C6, C1, C8, C9, and C3. Although the study concentrates on TV manufacturing organization, however the methodology can be adopted by any organization if the criteria and alternatives are clearly defined. Results have provided valuable suggestions to suppliers on how to improve each criterion so that they could bridge the gap between actual and aspired performance values in the future. The decision-aiding software was implemented in C language to automate the supplier(s) selection process.

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