APPLICATION OF TOPSIS METHOD TO SUPPLIER SELECTION IN IRAN AUTO SUPPLY CHAIN

Abstract

In today's highly competitive environment, an effective supplier selection process is very important to the success of any manufacturing organization. In this context, supplier selection represents one of the most important functions to be performed by the purchasing department. Supplier selection is a multi-criterion problem which includes both qualitative and quantitative factors (criteria). A trade-off between these tangible and intangible factors is essential in selecting the best supplier. A number of models and techniques have been developed to deal with selecting and evaluating suppliers. The aim of this study is developing a methodology to evaluate suppliers in supply chain cycle based on Technique for Order Preference by Similarity to Ideal Solution method (TOPSIS). The authors, with the help of going over expertise of experts and their relevant specialized literature, could recognize variables and effective criteria in supplier selection.