Ranking and Evaluation of Suppliers using AHP and TOPSIS in Calibration Laboratory

Abstract

Suppliers play a major role in enhancing an organization’s effort for achieving corporate competitiveness, hence, posing as one of the most important aspects for today’s firms. The identification and analysis of tangible and intangible factors involved while making supplier selection requires going through complex decision making process. The decision has to be based on multiple factors depending on business priorities, making it a Multi Criteria Decision Method (MCDM) problem. In this paper, the methodology has been constructed keeping in mind critical factors such as Acceptable Quantity, Quality Rating and Lots received on time. The authors have projected an integration of Analytical Hierarchal Process (AHP) and Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) for making the selection. The first stage conceives the factors influencing the decision making and the following stage helps in getting an optimal supplier. The proposed method has been used for a calibration laboratory.