TY - GEN
T1 - An integrated QFD-TOPSIS methodology for supplier selection in SMEs
AU - Kumaraswamy, Aditya Hosanagara
AU - Bhattacharya, Arijit
AU - Kumar, Vikas
AU - Brady, Malcolm
PY - 2011/1/1
Y1 - 2011/1/1
N2 - Supplier selection, within a supply-chain network, is a decision of strategic importance to SMEs. The selection involves trading-off multiple cardinal and ordinal criteria in an optimal fashion. Such a decision is multi-criteria in nature. "Technique for Order Preference by Similarity to Ideal Solution" (TOPSIS) is a distance-based multi-criteria decisionmaking tool that considers both ideal and negative-ideal solutions within its feasible solution domain. In reality, ideal solution is not attainable. Therefore, TOPSIS considers the shortest Euclidean distance from the ideal solution to have a composite of the best performance values exhibited by a candidate-alternative for each of the criteria. However, TOPSIS does not have provision to allow cross-functional planning criteria evolved from the multi-functional teams of SMEs. At this juncture, Quality Function Deployment (QFD), an existing cross-functional planning technique, is suitable integrated with TOPSIS for latter's better flexibility. The proposed methodology is validated using a benchmark problem from the literature. As an example, ten candidatesuppliers are ranked using the developed methodology considering eight disparate criteria and cost factors. Selection of the best candidate-supplier is made based upon a nondimensional selection-index containing the objective factor decision weight. The implication of the research lies within the flexibility of the proposed methodology for the purpose of the decision-making in SMEs.
AB - Supplier selection, within a supply-chain network, is a decision of strategic importance to SMEs. The selection involves trading-off multiple cardinal and ordinal criteria in an optimal fashion. Such a decision is multi-criteria in nature. "Technique for Order Preference by Similarity to Ideal Solution" (TOPSIS) is a distance-based multi-criteria decisionmaking tool that considers both ideal and negative-ideal solutions within its feasible solution domain. In reality, ideal solution is not attainable. Therefore, TOPSIS considers the shortest Euclidean distance from the ideal solution to have a composite of the best performance values exhibited by a candidate-alternative for each of the criteria. However, TOPSIS does not have provision to allow cross-functional planning criteria evolved from the multi-functional teams of SMEs. At this juncture, Quality Function Deployment (QFD), an existing cross-functional planning technique, is suitable integrated with TOPSIS for latter's better flexibility. The proposed methodology is validated using a benchmark problem from the literature. As an example, ten candidatesuppliers are ranked using the developed methodology considering eight disparate criteria and cost factors. Selection of the best candidate-supplier is made based upon a nondimensional selection-index containing the objective factor decision weight. The implication of the research lies within the flexibility of the proposed methodology for the purpose of the decision-making in SMEs.
KW - AHP
KW - Decision-making
KW - Multicriteria
KW - QFD
KW - SME
KW - Supplier selection
KW - TOPSIS
UR - http://www.scopus.com/inward/record.url?scp=83155161172&partnerID=8YFLogxK
U2 - 10.1109/CIMSim.2011.55
DO - 10.1109/CIMSim.2011.55
M3 - Conference contribution
AN - SCOPUS:83155161172
SN - 9780769545622
T3 - Proceedings - CIMSim 2011: 3rd International Conference on Computational Intelligence, Modelling and Simulation
SP - 271
EP - 276
BT - Proceedings - CIMSim 2011
PB - The Institute of Electrical and Electronics Engineers (IEEE)
T2 - 2nd International Conference on Computational Intelligence, Modelling and Simulation 2011, CIMSim 2011
Y2 - 20 September 2011 through 22 September 2011
ER -