Title: Development and assessment of modified VIKOR method for multi-criteria single sourcing in supply chain
Authors: P. Parthiban, M. Punniyamoorthy, K. Ganesh, G. Ranga Janardhana
Addresses: Department of Production Engineering, National Institute of Technology, Tiruchirappalli 620 015, India. ' Department of Management Studies, National Institute of Technology, Tiruchirapalli 620 015, India. ' Integrated Supply Chain, Manufacturing Industry Solutions Unit, Tata Consultancy Services Limited, Vikhroli West, Mumbai 400079, India. ' Department of Mechanical Engineering, JNT University, Kukatpally, Hyderabad 500 072, India
Abstract: The sourcing decision plays a major role in supply chain because raw materials/semi-finished goods cost constitute the key cost of final product. We develop a modified VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) method, a compromise ranking model for evaluation and selection of sourcing partners to handle the conflicting and non-commensurable set of criteria and to identify the solution close to ideal. The modified VIKOR method is compared with two multi-criteria decision-making methods: technique for order preference by similarity to an ideal solution (TOPSIS) and elimination and choice translating reality (ELECTRE). All the three approaches were illustrated and compared for a computer retail supply chain case study. The better results of modified VIKOR are validated.
Keywords: single sourcing; modified VIKOR; TOPSIS; ELECTRE; supply chain management; SCM; supplier selection; suplier evaluation; compromise ranking models; sourcing partners; multicriteria decision making; MCDM; computer retailing; retail supply chains.
International Journal of Business and Systems Research, 2010 Vol.4 No.1, pp.94 - 116
Available online: 03 Dec 2009 *Full-text access for editors Access for subscribers Purchase this article Comment on this article