Journal of Business, Economics and Finance (JBEF), vol.2, no.2, pp.56-74, 2013 (Peer-Reviewed Journal)
In the competitive business environment of the 21st century,
organizations must reply quickly and precisely to customer demands.
The choice of suppliers and their performance assessment are becoming
major challenges that face supply chain managers or directors.
Evaluating suppliers and selecting one of them are complicated tasks
due to the fact that various criteria or objectives must be considered in
the decision making process. Also in many real world cases the criteria
are not equally important for the purchase managers. In this study, we
proposed a supplier selection analysis model considering both Analytic
Hierarchy Process (AHP) and Technique for Order Preference by
Similarity to Ideal Solution (TOPSIS) method. Subjective and objective
opinions of purchase managers/experts turn into quantitative form with
AHP. TOPSIS technique is used for calculating the supplier’s ratings.
The aim of this paper is to determine the appropriate supplier providing
the most customer satisfaction for the criteria identified in the supply
chain. In this paper, data taken from a well-known cable manufacturing
company in Turkey is used to illustrate the supplier selection procedure.
Due to the fact that main raw material used in all cables, the company
strongly focuses on supply of the Electrolytic Copper Cathode. The
company detects eight different criteria for procurement of the
Electrolytic Copper Cathode. These are origin, quality, availability,
cost, delivery requirements, cost of conveyance, reliability of supplier
and quality certificates. There are four firms providing the Electrolytic
Copper Cathode for the company.