Evaluvation and selection of suppliers using TOPSIS

Abstract

The understanding of the concept, maximum profit is not only the aim of an organization but consideration of their effects on society and environment also matters, leads to the concept of Green management. The recent change in the environment and climate increased the concern of environmental protection, which depicts the necessity to transform into green production. In order to solve the environmental related issues, the first step of the production is to find the right vendor for raw materials, that is implementation of Green supplier is one of the methods and the criteria are greening the vendor or supplier. When the first step is taken according to Green management principles obviously the further stage continue to follow the principles. However, selection of a supplier is a basic multi-criteria decision-making problem. The traditional method for supplier selection is hectic and not practical. For this, most popular MCDM technique TOPSIS (Technique for order preference by similarity to ideal solution) is used and the solution obtained through Analytical Hierarchy Process (AHP) is checked.