A Hybrid Multi-Criteria Decision-Making Approach Based on ANP-Entropy TOPSIS for Building Materials Supplier Selection.

Chun-Ho Chen

doi:10.3390/e23121597

Abstract

This article will tell you how to combine “entropy” in the model to reduce the bias of multi-criteria evaluation. Subjective weights are usually determined by decision makers based on their professional background, experience and knowledge, and other factors. The objective weight is obtained by constructing an evaluation matrix of the information based on the actual information of the evaluation criteria of the scheme, and obtained through multi-step calculations. Different decision-making methods are based on different weight types. Considering only one of the two weights often leads to biased results. In addition, in order to establish an effective supply chain, buyers must find suitable merchants among suppliers that provide quality products and/or services. Based on the above factors, it is difficult to choose a suitable alternative. The main contribution of this paper is to combine analytic network process (ANP), entropy weight and the technique for order preference by similarity to an ideal solution (TOPSIS) to construct a suitable multi-criteria decision (MCDM) model. By means of ANP-entropy weights to extend the TOPSIS method, ANP-entropy weights are used to replace subjective weights. A supplier selection decision-making model based on ANP-entropy TOPSIS is proposed. At last, the sensitivity analysis shows that, taking the selection of building materials suppliers as an example, the hybrid ANP-entropy TOPSIS method can effectively select suitable suppliers.

Highlights

The decision-making process usually needs to consider multiple attributes and criteria at the same time, and multiple technologies and methods are needed to assist decision making
In order to select suitable building material suppliers, in this research, we propose a hybrid multi-criteria decision-making model based on analytical network process (ANP)-entropy TOPSIS
From the second stage to the fourth stage of the research framework of this article, a weight value can be obtained that can replace the subjective weight value set by the decision maker in the traditional TOPSIS method, that is, the ANP-entropy weight value of TOPSIS

Summary

Introduction

The decision-making process usually needs to consider multiple attributes and criteria at the same time, and multiple technologies and methods are needed to assist decision making. Supplier evaluation and selection is an important part of business operations. The main purpose of the evaluation process is to select the most suitable supplier, not to find the supplier with the best technology, the shortest delivery period, or the lowest price [2,3]. In the early stages of the supply chain, selecting the most advantageous supplier is one of the most important tasks. In the decision-making method for the management of complex areas in the supply chain, it is especially necessary to determine certain criteria in advance [10]. Academia and practice have conducted extensive research on supply chain management

Methods

Results

Conclusion