Supplier Selection with Fuzzy TOPSIS

Abstract

For businesses, carrying out their activities successfully is directly related to the suppliers’ efficiency as well as their own performances. Properly selected suppliers make a significant contribution to the competition capacity of enterprises. Therefore, selecting proper suppliers is regarded as a multiple criteria decision making (MCDM) problem, which includes many qualitative and quantitative factors in the process.In this study, a supplier selection model has been developed in order to help executives with proper supplier selection. In this model, Fuzzy Technique for Order Preference by Similarity to Ideal Solution (FTOPSIS) method, which is an MCDM method, was used with positive trapezoidal fuzzy numbers. The decision structure and the criteria used in decision support model have been determined based on the literature review. The result of the model demonstrated that all the suppliers evaluated in the study are suitable enough to work with, but the supplier B deserves the first place.

Keywords: Fuzzy TOPSIS, Multiple-Criteria Decision Making, Supplier Selection.