Optimization Techniques in Engineering

30A Novel MCGDM Approach for Supplier Selection in a Supply Chain Management

Bipradas Bairagi

Department of Mechanical Engineering, Haldia Institute of Technology, Haldia, India

Abstract

This research work aims to explore a novel multicriteria group decision making approach for supplier selection in supply chain management. This approach is capable of considering multiple conflicting subjective criteria and their subcriteria. In this technique, performance ratings of alternatives and weights of subjective criteria and associated subcriteria are extracted from the experience and unanimous opinion of a group of experts. The performance ratings are normalized to squeeze and transform into required sense. Normalized ratings of alternatives are integrated with the weights of criteria and subcriteria. Absolute weighted ratings are defined and expressed in terms of integration of arithmetic and geometrical mean of their weighted performance ratings. Absolute weighted rating is used for measuring performance indices of the alternatives. Alternatives are arranged in the descending order of their performance indices. The alternative with the highest performance index is selected as the best alternative. The proposed approach is illustrated with a suitable supplier selection problem considering multiple subjective criteria and subcriteria. The result shows that the proposed method is effective and useful for selection of the best supplier under multicriteria decision making environment. ...