Supplier Selection for Automotive Industry Using Multi-Criteria Decision Making Techniques

Abstract

This paper is aimed to suggest an approach for evaluating and selecting suppliers for an automotive manufacturing company, based on multi-criteria decision making methods. As an initial step, main criteria and sub-criteria which affect the evaluation and selection process of a supplier are identified. Secondly, DEMATEL approach is implemented to the main criteria in order to expose cause and affect interrelationship among them which is required by Analytic Network Process (ANP) method. At the third step, ANP methodology is applied for calculating the weights of each sub-criterion. After obtaining the weights of the sub-criteria, alternative suppliers are evaluated and ranked using TOPSIS method. At the end, the supplier with the highest performance indices is selected as the best supplier

Keywords

• Supplier selection, multi-criteria decision making, DEMATEL, ANP, TOPSIS

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