A hybrid MCDM model for strategic vendor selection

Abstract

Proposed in this study is a hybrid model for supporting the vendor selection process in new task situations. First, the vendor evaluation problem is formulated by the combined use of the multi-criteria decision-making (MCDM) approach and a proposed five-step hybrid process, which incorporates the technique of an analytic network process (ANP). Then the modified TOPSIS (technique for order performance by similarity to idea solution) is adopted to rank competing products in terms of their overall performances. The newly developed ANP will eventually yield the relative weights of the multiple evaluation criteria, which are obtained from the nominal group technique (NGT) with interdependence. An example is solved to illustrate the effectiveness and feasibility of the suggested model. The empirical study has demonstrated how the approach can be used for the strategic vendor selection problem. © 2006 Elsevier Ltd. All rights reserved.