Journal of International Business Operations and Trade Policy

Authors: Dr. C.S. Chethan Kumar, Mr. Deepak Kumar

Abstract: The aim of this paper is to analyze the criteria for supplier evaluation process, determine the best supplier and review different methods that help to make this decision. The first phase of this project involved the study of the existing system, followed by identification of the problem. It is identified that the present system considers only three criteria for evaluation and the system gives more importance to Quality. This, results in the supplier focusing on only Quality, while ignoring others. Also, there is no distinction between the supplier performances. This project also refers to the work carried out not only by Dickson but also by different authors that progressed in this area. Based on the views of various authors till date, a new list has been developed. This list contains the most important criteria that will lead to a more precise and fair supplier selection process. The supplier evaluation system is redesigned by considering three more criteria after referring to various journals. Four techniques namely Analytical Hierarchic Process (AHP) and Techniques for Order Preference by Similarity to an Ideal Solution (TOPSIS), Fuzzy Analytical Hierarchic Process (FAHP) and Fuzzy Techniques for Order Preference by Similarity to an Ideal Solution (FTOPSIS) were used to evaluate and rate multiple suppliers.

Both qualitative and quantitative factors have been considered in the evaluation process and a clear distinction has been made between suppliers by the use of the four methods. Thus, the problems of the present system were identified and it was proposed that the company could adopt any of the 4 methods that best suits their requirement. The above methodology can be extended to various other decision making problems like project selection, personnel ranking, software selection, company profiling, company location etc.