multi criteria decision making in supply chain

In this paper, the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) method with MRP model is proposed to solve group belief MCDM problems.This paper focuses on implementing an inventory management demand forecasting system. It results in merging supplier management and stock management in a one coherent material flow management system with respect to supplier risk.

                           The model of Material Requirements planning system based on supplier selection is the key to optimized resources and improved inventory status, deliveries and satisfaction by using continuous reviewing and forecasting system. This paper reflects the methodology and improvement made in supplier selection based on supplier risks and material requirements planning by integrating bill of material and related constraints and various attributes, criteria for supplier selection in the system.

                          Supplier selection is a multi-criteria decision making problem (MCDM) that is affected by quantitative and qualitative (conflicting) factors. To solve the problem, an integration of TOPSIS is used to consider both tangible and intangible factors in choosing the best suppliers based on supplier risk and define the optimum quantities among the selected suppliers.

                           This paper investigates a new novel approach for this problem based on TOPSIS method while it takes into account the risk factor solely regarding the decision maker’s venture strategy. TOPSIS determines the effects of decision criteria; a set of risk categories has been deployed to affect the decision maker’s choice by normalizing the weights of risk criteria.

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Mon, 04/04/2011 - 17:40