VENDOR SELECTION AND QUOTA ALLOCATION BY USING FUZZY TOPSIS AND LINEAR PROGRAMMING

Abstract

Vendor selection is an important aspect of a supply chain. The objective of vendor selection is to reduce purchasing risk, maximize overall value to the purchaser and build a long term, reliable relationships between buyers and suppliers. Therefore selection of a good vendor is an important decision making process for an organization. An inappropriate decision affects not only that specific buyer but also the entire supply chain. In general, many quantitative and qualitative factors such as quality, price, and flexibility and delivery performance must be considered to determine suitable vendors. Vendor selection is a multi-criteria decision making problem. In the real-world situations, due to incomplete and vague information, the required data (imprecise in nature) for decision making often cannot be described deterministically. Therefore, in order to make more realistic decisions, fuzzy sets theory can be applied in such cases. So we have used Fuzzy TOPSIS method to deal with imprecis...