An integrated AHP and TOPSIS approach to supplier selection in supply chain management

Supply chain management (SCM) is one of the most important competitivestrategies used by modern enterprises. Supplier selection is an important issue insupply chain management. Suppliers were ranked according to TOPSIS methodby the criteria weights obtained with AHP method. The advantage of thismethod is that it allows decision makers to set multiple aspiration levels forsupplier selection problems. Supplier selection is a multi-criteria decisionmaking problem which includes both qualitative and quantitative factors. Theaim of this study is to develop a methodology to evaluate suppliers in supplychain cycle based on Technique for Order Preference by Similarity to IdealSolution method (TOPSIS). The integrated model is illustrated by an examplein a watch firm. Finally, an empirical study is conducted to demonstrate theprocedure of the proposed system and identify the suitable supplier.

Keywords:

supplier selection , AHP , TOPSIS , supply chain management