Title: An integrated model for supplier selection: an automobile industry case study

Authors: Sasikumar Gnanasekaran, Selladurai Velappan, Sivasangari Ayappan

Addresses: Department of Mechanical Engineering, Bannari Amman Institute of Technology, Sathyamangalam 638 401, India. ' Department of Mechanical Engineering, Coimbatore Institute of Technology, Coimbatore 641 014, India. ' Department of Electronics and Communication Engineering, Bannari Amman Institute of Technology, Sathyamangalam 638 401, India

Abstract: In manufacturing industries, supplier selection is considered to be an important decision in managing the supply chain. Today|s globally competitive business environment requires suppliers to supply raw materials and outsourced parts punctually – in the right quantity and with consistent quality. Manufacturers are increasingly concerned about supplier selection since reliable suppliers enable them to reduce inventory costs and improve product quality. The present paper, therefore, proposes a model based on the integration of the Analytic Hierarchy Process (AHP) and Grey Relational Analysis (GRA) for supplier selection. The additive normalisation method is used as the prioritisation method to calculate the priority vectors. We also developed a decision support system using Excel to perform the mathematical analysis and obtain the results. The case study was conducted in a leading automobile components manufacturer to demonstrate the application of the proposed model.

Keywords: supplier selection; supply chain management; SCM; grey relational analysis; GRA; analytical hierarchy process; AHP; decision support systems; DSS; automobile industry; automotive components manufacturing.

DOI: 10.1504/IJSOM.2010.029496

International Journal of Services and Operations Management, 2010 Vol.6 No.1, pp.89 - 105

Published online: 30 Nov 2009 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article