Supplier Selection Problem based on MCDM Methods
Abstract
Supplier selection is one of the most important decision making problems including both qualitative and quantitative factors to identify Suppliers with the highest potential for meeting a firm’s needs consistently and at an acceptable cost and plays a key role in supply chain management (SCM).The purpose of this paper is applying a new integrated method to Supplier selection. Proposed approach is based on AHP and TOPSIS methods. AHP method is used in determining the weights of the criteria by decision makers and then rankings of Suppliers are determined by TOPSIS method. At the end a numerical example is presented to demonstrate the application of proposed method in selecting the suppliers.
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