SELECTION OF SUPPLIERS THROUGH DIFFERENT MULTI-CRITERIA DECISION MAKING TECHNIQUES

The main objective of the paper is to provide different multi-criteria decision making approach and to clarify the similarities and dissimilarities, advantages and disadvantages of the method in order to select the better supplier selection approach. An important problem in decision analysis is the evaluation of the difference between two or more different rankings for a set of alternatives. Since a qualified supplier is a key element and a good resource for a buyer in reducing such costs, evaluation and selection of the potential suppliers has become an important component of supply chain management. In this paper some multi-criteria decision making techniques such as Linear weighted method, Categorical method, Fuzzy approach, Analytical Hierarchical process (AHP)are discussed with example. The aim of this article is to understand the strategic operating decision area of the supplier selection process and to aid decision makers with varying degrees of importance to reach consensus in rating alternative suppliers.