An order acceptance using FAHP and TOPSIS methods: A case study of Iranian vehicle belt production industry

Abstract

Article history: Received 20 June 2011 Received in revised form August, 2, 2011 Accepted August, 3 2011 Available online 16 August 2011 Decisions related to acceptance or rejection of orders play an important role in companies engaged in make-to-order production. The incoming orders have a specific delivery date by which the customer expects the due date to be met and the order delivered. In some cases the level of input orders exceeds beyond the existing capacity. In such situations the main concern is to decide which orders must be accepted and which ones rejected taking into account the available production capacity. This paper prioritises the input orders according to a comprehensive and systematic multi criteria decision making (MCDM) model. It then proceeds with making decisions to either accept or reject orders according to the calculated prioritises and production constraints. Ultimately the optimum list of orders for acceptance is determined. The proposed model is a combination of two techniques of Fuzzy Analytical Hierarchy Process (FAHP) and Technique for Order Preference by Similarity to an Ideal Solution (TOPSIS). In this model FAHP is used to determine the weights of criteria and TOPSIS is used for prioritizing the orders. Finally the proposed model is tested for its efficiency by application to a real case. © 2012 Growing Science Ltd. All rights reserved