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

Manas Ranjan Pani, Rakesh Verma and G. Sahoo

International Journal of Procurement Management, 2012, vol. 5, issue 6, 784-796

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. (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (1)

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