Supplier Selection through AHP-VIKOR Integrated Methodology

International Journal of Industrial Engineering

© 2016 by SSRG - IJIE Journal

Volume 3 Issue 3

Year of Publication : 2016

Authors : K.G.Durga Prasad, M.V.Prasad, S.V.V.Bhaskara Rao and C.S.Patro

10.14445/23499362/IJIE-V3I5P101

How to Cite?

K.G.Durga Prasad, M.V.Prasad, S.V.V.Bhaskara Rao and C.S.Patro, "Supplier Selection through AHP-VIKOR Integrated Methodology," SSRG International Journal of Industrial Engineering, vol. 3,  no. 3, pp. 1-6, 2016. Crossref, https://doi.org/10.14445/23499362/IJIE-V3I5P101

Abstract:

Supplier selection is one of the significant aspects of any supply chain. The incorrect decision on supplier selection affects not only the specific buyer but also the entire supply chain. The selection of good supplier may lead to reduce purchasing risk, maximize overall value to the purchaser and to establish reliable long-term relationships between buyers and suppliers. In fact, supplier selection is a multi-criteria decision making problem which includes both qualitative and quantitative factors. In this paper a methodology has been proposed by integrating Analytic Hierarchy Process (AHP) and Multi-criteria Optimization and Compromise Solution technique called VIKOR with a view to resolving the uncertainty while selecting the best one among various alternatives. A case study has been conducted in a manufacturing company to demonstrate the proposed methodology.

Keywords:

Supplier selection, Multi-criteria decision making, AHP, VIKOR.

References:

[1] Adhikary. P., Roy. P.K and Mazumdar.A (2015), “Selection of small hydro power project site: A multi criteria optimization technique approach”, APRN Journal of Engineering and Applied Sciences, Vol.10, No.8, pp.3280- 3285.
[2] Asadabadi.M.R (2014), “A hybrid QFD-based approach in addressing supplier selection problem in product improvement process”, International Journal of Industrial Engineering Computations, Vol. 5, No.4, pp.543-560.
[3] Chang, C.W., Wu, C.R., Lin, C.T. and Lin, H.L. (2007), „Evaluating digital video recorder systems using analytic hierarchy and analytic network processes, Information Sciences, Vol.177, No.16, pp.3383-3396.
[4] Chatterjee.P, Mukherjee.P and Chakraborty.S (2011), “Supplier selection using compromise ranking and outranking methods”, Journal of Industrial Engineering International, Vol.7, No.14, pp.61-73.
[5] Djordjevic. M.Z., Puskaric.H. and Djordjevic.A (2014), “Evaluation and ranking of artificial hip prosthesis suppliers by using a fuzzy TOPSIS methodology”, International Journal for Quality Research, Vol.8, No.2, pp.155-168
[6] Durga Prasad.K.G., Venkata Subbaiah.K, Venu Gopala Rao.Ch and Narayana Rao.K (2012), “Supplier evaluation through Data Envelopment Analysis”, Journal of Supply chain Management Systems, Vol.1, No.2, pp.1-11.
[7] Elanchezhian, C., Ramnath, B.V. and Kesavan, R. (2010), “Vendor Evaluation using multi criteria decision making technique”, International Journal of Computer Applications, Vol.5, No.9, pp. 4-9.
[8] Haldar.A, Ray.A, Banerjee.D and Ghosh.S (2012), “A hybrid MCDM model for resilient supplier selection”, International Journal of Management Science and Engineering Management, Vol.7, No.4, pp. 284-292.
[9] Handfield, R., Walton, S.V., Sroufe, R and Melnyk, S.A. (2002), “Applying environmental criteria to supplier assessment: A study in the application of the Analytic Hierarchy Process”, European Journal of Operation Research, Vol.141, No.1, pp.70-87.
[10] Kacker, R. N (1985),“Off-line quality control, parameter design and the Taguchi method”. Journal of Quality Technology, Vol.17, No.4, pp.176 -188.
[11] Kamal.M., Al-Subhi Al-Harbi(2001), “ Application of the AHP in project management”, International Journal of Project Management, Vol.19, No.1 , pp 19-27.
[12] Kassaee.M. Farrokh. M and Nia.H.H (2013),” An integrated hybrid MCDM approach for vendor selection problem”, Business and Management Horizons, Vol. 1, No.1, pp. 153- 170.
[13] Khan.S, Aruna, B.D and Verma M (2014), “Adaptation of the AHP as multi-criteria decision making approach and testing the original AHP over two evaluative criteria”, International Journal of Scientific and Engineering Research, Vol.5 No.6, pp963-968.
[14] Kilincci.O and Onal.S.A (2011), “Fuzzy AHP approach for supplier selection in a washing machine company”, Expert Systems with Applications, Vol. 38, No.8, pp.9656-9664.
[15] Liu.W(2016), “VIKOR method for group decision making problems with ordinal interval numbers”, International Journal of Hybrid Information Technology, Vol.9, No.2, pp 67-74.
[16] Nydic, R.L and Hill, R.P. (1992), “Using Analytic Hierarchy Process to structure the supplier selection procedure”, International Journal of Purchasing and Materials Management, Vol.28, No.2, pp.31-36.
[17] Opricovic, S (1994), “Preference stability of compromise solution in multiple decision making”, XIth International Conference on Multiple Criteria Decision Making, Coimbra, Portugal.
[18] Pal.O, Gupta.A.K and Garg R.K (2013), “Supplier selection criteria and methods in supply chains: A review”, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, Vol.7, No.10, pp.2667 - 2673.
[19] Rajiv.B and Darshana.B(2014). “Supplier selection for construction projects through TOPSIS and VIKOR multicriteria decision making methods”. International Journal of Engineering Research and Technology, Vol.3, No.5, pp. 1971-1976.
[20] Rao.R.V (2007), “Decision making in the manufacturing environment: using graph theory and fuzzy multiple attribute decision making methods”, Springer, London.
[21] Saaty, T.L (1980), “The Analytic Hierarchy Process”, McGraw-Hill Company, New York.
[22] Siadat. S.H and Maleki. C (2015), “Selection of suppliers using TOPSIS method based on green supply chain criteria - case study”, A Journal of Economics and Management, Vol. 4, No.1, pp.103-120.
[23] Tam, M.C.Y and Tummala, V.M.R (2001), “An application of the AHP in vendor selection of telecommunications system”, Omega, Vol.29, No.2, pp. 171 – 182.
[24] Thiruchelvam.S and Tookey. J.E (2011), “Evolving trends of supplier selection criteria and methods”, International Journal of Automotive and Mechanical Engineering, Vol.4, No.2, pp437-454.
[25] Triantaphyllou. E and Mann.S.H (1995), “Using the Analytic hierarchy process for decision making in engineering applications: some challenges”, International Journal of Industrial Engineering: Applications and Practice, Vol.2, No.1, pp.35-44.
[26] Tzeng.G.H and Huang. J.J (2011), “Multi-attribute decision making: Methods and Applications, CRC Press, Boca Raton.
[27] Venkata Subbaiah.K, Durga Prasad.K.G., Uma Bharathi and Soma Sekhara Rao.K (2011), “Integrating Factor analysis and Analytic Hierarchy process for library service quality, International Journal for Quality Research, Vol.5, No.3, pp.205-212.
[28] Yahya, S. and B. Kingsman (1999), “Vendor rating for an entrepreneur development programme: a case study using the analytic hierarchy process method”, Journal of the Operational Research Society, Vol.50, No.9, pp. 916- 930.