A Distance-Based Multi-Criteria Decision Making Approach to Problem of Supplier Involvement in New Product Development

Abstract

Because of rising global competition and more rapid technological changes, the need for faster development of products with higher quality and reliability has increased, also elevating the importance of supplier involvement. Accordingly, companies give high priority to development of relationships with their suppliers, including collaborative product development. This paper focuses on evaluating current suppliers, which are to be involved in design decisions and product development processes. First, an overview of the supplier involvement in product development process is described. Then, a questionnaire form is introduced, which was administered to 40 automotive suppliers to determine the supplier selection criteria’s importance levels. Survey results were evaluated using statistical means for reliability and suitability. Finally, in order to select the best supplier, results were evaluated using a method integrating Analytical Network Process (ANP) and Technique for Order Preference by Similarity to Ideal Solution (TOPSIS). The evaluation criteria were weighted with ANP, and then supplier companies were ranked using TOPSIS methodology.