Hybrid Optimisation for Supply Chain Management: A Case of Supplier Selection by CRITIC, ARAS and TOPSIS Techniques

Abstract

Supply chain management is the core strategic approach for enhancing organisational efficiency and hence, the execution of goals. The supply chain concept has been stimulated in many ways, including supplier selection and evaluation. Supplier selection has always been a matter of concern for any organisation. It has always been a challenging task for the decision-maker to find the most suitable supplier for stock among the many numbers, which is based on different types of evaluation processes and criteria. Although a number of multiple-criteria decision making (MCDM) methods are available for finding answers to MCDM questions, it has been observed that, in most of these methods, the pecking order of results is highly reactionary to the modifications made in attribute weights. In most multiple-criteria decision making (MCDM) models, re-examination is needed when different weights are assigned to different criteria, as it is a pivotal step. The determining of the significance of criteria is the core issue that is usually confronted in multiple-criteria decision making. There is present work based on the hybridisation of the two different types of MCDM methods, first is the Criteria Importance Through Intercriteria Correlation (CRITIC) Method for weightage calculation, and the second group of methods is Additive Ratio Assessment (ARAS) and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) method. The latter methods are used for carrying out the individual supplier’s rank with respect to criteria, in a way, selecting the most suitable supplier for a manufacturing firm. In this study and with the aid of illustrative examples, the supplier’s ranking performance is calculated and compared with one another. In the descriptive example, a manufacturing firm is looking to selecting the most suitable supplier among the 14 suppliers and four different criteria including quality, price/value, delivery and service.