An evaluation of suppliers' performance using TOPSIS method: a case study in the ecommerce industry in Iran Online publication date: Wed, 03-May-2023
by Mahboubeh Kamalkhani; Shib Sankar Sana
International Journal of Comparative Management (IJCM), Vol. 4, No. 2, 2022
Abstract: The purpose of this paper is to use the Multi Criteria Decision Making Tool (MCDM)-TOPSIS method to evaluate suppliers based on their operational performance. One of the industries that have been growing lately and has a high dependency on its suppliers is ecommerce industry. Among several criteria for supplier evaluation, five operational criteria have been chosen by the Delphi method. Analytic Hierarchy Process (AHP) is used to measure the weightage of the criteria, and TOPSIS is used to evaluate and rank the suppliers. This study provides a model that gives clear insight to the company about all the suppliers as to where they stand with respect to their performance. It is suggested that companies share the ranking with their suppliers to assist them in identifying the areas that need strengthening. Sharing these rates also provides a competitive environment to improve their performance. Application of this method is demonstrated through a case study in the ecommerce industry in Iran.
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