Title: An integrated model for supplier selection using fuzzy analytical hierarchy process: a steel plant case study

Authors: Sasikumar Gnanasekaran, Selladurai Velappan, P. Manimaran

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 Mechanical Engineering, Kamaraj College of Engineering and Technology, Virudunagar, 626 001, India

Abstract: Supplier selection is one of the most important functions to be performed by the purchasing department. The supplier selection is a multi-criteria decision making (MCDM) problem involving both qualitative and quantitative criteria. In order to select the best suppliers, it is necessary to make a trade off between tangible and intangible criteria that conflict with each other. Today|s globally competitive business environment warrants suppliers to supply raw materials punctually in the right quantity and quality. Manufacturers are increasingly concerned about supplier selection since reliable suppliers enable them to reduce inventory costs and improve product quality. This paper proposes an integrated model based on fuzzy analytical hierarchy process (AHP) for supplier selection. A decision support system (DSS) has been developed using Visual Basic and MS Access. The case study was conducted in a leading steel plant to demonstrate the application of the proposed model.

Keywords: supplier selection; supply chain management; SCM; analytical hierarchy process; fuzzy AHP; integrated models; purchasing; multicriteria decision making; MCDM; qualitative criteria; quantitative criteria; tangible criteria; intangible criteria; globalisation; competition; competitiveness; raw materials; punctuality; inventories; cost reduction; product improvement; decision support systems; DSS; steel plants; India; procurement management.

DOI: 10.1504/IJPM.2010.033447

International Journal of Procurement Management, 2010 Vol.3 No.3, pp.292 - 315

Published online: 02 Jun 2010 *

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