%0 Journal Article
%T A Study of Multicriteria Decision Making for Supplier Selection in Automotive Industry
%A Nadia Jamil
%A Rosli Besar
%A H. K. Sim
%J Journal of Industrial Engineering
%D 2013
%I Hindawi Publishing Corporation
%R 10.1155/2013/841584
%X This paper is designed to present the effectiveness of group multicriteria decision making in automotive manufacturing company focusing on the selection of suppliers in Malaysia. The process of selecting suppliers is one of the most critical and challenging endeavor in any supply chain management. There are five decision making tools being analyzed in this study, namely, analytical hierarchy process (AHP), fuzzy analytical hierarchy process (FAHP), technique for order performance by similarity to ideal solution (TOPSIS), fuzzy technique for order performance by similarity to ideal solution (FTOPSIS), and fuzzy analytical hierarchy process integrated with fuzzy technique for order performance by similarity to ideal solution (FAHPiFTOPSIS). The scores of ranking among the suppliers in each MCDM tools (AHP, FAHP, TOPSIS, FTOPSIS, and FAHPiFTOPSIS) show significantly comparable variation. Scores of the best supplier is then compared to the lowest supplier for all MCDM tools whereby this reflects that the highest percentage goes to TOPSIS with scoring of 79.37%. On the contrary, FAHPiFTOPSIS demonstrated the lowest score variation of 22.42% which indicates that FAHPiFTOPSIS is able to eliminate biasness in supplier selection process. 1. Introduction A supply chain is a system which connects several departments from procurement of raw materials, to manufacturing, warehousing, and distribution of the products to the customers. Part of the contribution to supply chain complexity is the geographical outsourcing for cheaper supply and new market penetration. The complexity of supply chain is aggravated further when industry rely too much on multirange products and frequent introduction of new products as a strategy to meet different segmented market demands. In automotive industry, such situation is rampant. The frequent introduction of new models and shorter product lifecycles compounded by fast order-delivery require high level of agility and flexibility of the suppliers, thereby, exacerbating the supply chain complexity. Hence, the right selection of supplier becomes more complicated. With the mounting complexity of supply chain, the selection of the suppliers becomes very challenging. The recent incident in Fukushima, Japan, devastated by massive earthquake and nuclear disaster, and major floods in Thailand, had affected severely many Malaysian industries as well as industries in other parts of the world [1]. Those Malaysian companies which have their suppliers associated with these companies have suffered critical production problems, in particular,
%U http://www.hindawi.com/journals/jie/2013/841584/