Fuzzy TOPSIS and Grey Relation Analysis Integration for Supplier Selection in Fiber Industry

Abstract

In the present work, selection of right corrugated box supplier for fibre industry is studied. Decision makers independently evaluate the supplier’s strength for both qualitative (quality, reliability, flexibility, stability, capability, and availability) and quantitative (order volume, price, delivery, credit period and location) criteria’s with conflict in nature. Inappropriate choice of supplier by traditional approach could result in financial losses. Hybrid approach (Fuzzy TOPSIS and Grey relational analysis GRA) is proposed to select the right corrugated box supplier from the pool of suppliers for Fiber industry located in Goa, India. Fuzzy TOPSIS method is applied to evaluate the qualitative criteria, whereas, GRA for quantitative criteria’s for selecting the best supplier. Considering the ranks obtained from both the qualitative and quantitative criteria’s evaluated by Fuzzy TOPSIS and GRA, the best supplier is selected. In addition, sensitivity analysis is performed to know the changes in rank of suppliers with variation in preferential weights assigned to qualitative and quantitative criterion.

Keywords

• supplier selection
• multi criteria decision making
• fuzzy topsis
• grey relation analysis
• sensitivity analysis