Supplier Selection Problem: Integrating Grey Relational Analysis and TOPSIS

Abstract

Many processes are involved in managing the supply chain to expedite the flow of information and materials. The Supply Chain Council developed a Supply Chain Operations Reference Model (SCOR) as a cross-industry reference model for supply chain management, which identifies five major supply chain process: plan, source, make, deliver, and return. One of the subprocesses in the source process is identifying suppliers. In modern management, a company tries to establish a long-term relationship with its supplier to ensure its stable source and therefore evaluating supplier has become even more critical than ever in gaining strategic advantage in supply chain management. In this paper, we going to propose a supplier evaluation model based on grey relational analysis and TOPSIS which have been extensively applied in various fields including decision making.