Title: A heuristic method for supplier selection using AHP, entropy and TOPSIS

Authors: Manas Ranjan Pani; Rakesh Verma; G. Sahoo

Addresses: Department of MCA, Seemanta Engineering College, Jharpokharia, Mayurbhanj, Orissa – 757086, India. ' Operations Management, NITIE Mumbai, Mumbai – 400087, India. ' Department of Information Technology, Birla Institute of Technology, Mesra, Ranchi, Jharkhand – 835215, India

Abstract: Purchasing is the primary point of contact with most supply-chain partners and thus among the most important activities. The decisions taken at the purchasing stage has a great impact on the overall supply-chain and production planning processes and on the overall performance of the firm. Thus, studies in decision support can have a huge positive impact in the processes in procurement. In this paper, we apply a proposed heuristic method (AET) as a combination of AHP (analytical hierarchy procedure), entropy, and technique for order preference by similarity to an ideal solution (TOPSIS) to select the best supplier. Finally a hypothetical case has been used to demonstrate the concept while choosing a supplier using the proposed AET model.

Keywords: multicriteria decision making; MCDM; supplier selection; analytical hierarchy process; AHP; entropy; TOPSIS; supply chain management; SCM; e-procurement; electronic procurement; procurement management.

DOI: 10.1504/IJPM.2012.049715

International Journal of Procurement Management, 2012 Vol.5 No.6, pp.784 - 796

Published online: 16 Aug 2014 *

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