An Integrated approach based on MADM and MODM for supplier selection and assembler selection in supply chain management

Minimization of costs and maximization of product quality are key factors for success in a supply chain network (SCN).The SCN is considered four echelons: suppliers, middle assemblers, final assembler and retailers that supply a single type product consists of four components. In this paper in addition to the supplier selection, the assemblers and warehouses are selected. The assembly process of the products such as automobile, tractor, consist of multiple stage, therefore in this paper, the assemblers are divided in two groups: multiple middle assemblers (which assemble the component of the product), a final assembler (assembles the final product). In this paper an integrated approach for middle assemblers selection based on multi attribute decision making (MADM) and suppliers selection based on multi objective decision making (MODM) is proposed. First the weight of the attributes (cost, quality, delivered time and warranty) is determined by ENTROPY method and then the middle assemblers are selected by TOPSIS method. The model consists of two minimization of costs and maximization of quality which is solved by CHEBYSHEV goal programming to select suppliers. Application of proposed method is shown by numerical example and optimal solutions have been compared considering one objective and two objectives.