Supplier selection is a multi-criteria problem which includes both tangible and intangible
factors in these problems if suppliers have capacity or other different constraints two problems will
exist: which suppliers are the best and how much should be purchased from each selected supplier?
The objective of this paper is to present an integrated model and a supporting approach for effective
supplier selection decisions and determined optimum order allocation. Therefore, an integrated
approach of ANP- TOPSIS (Analytic Network Process and Technique for Order Preference by
Similarity to Ideal Solution) is proposed in choosing the best suppliers and defined the optimum
quantities order among selected suppliers by using a mathematical model (Multi-Objective Linear
Programming). Hence, after library studies and interview with experts, managers and specialists in
supply chain management filed, decision criterion was identified through brain storming contains of
seven main criteria for suppliers selection process. Then in the second section for order allocation to
every selected suppliers in first section we used a (MOLP) Multi-Objective Linear Programming
model. Therefore objectives and subjective of suppliers and Automotive Company were identified in
this section. Results show that applying a two phase ANP-TOPSIS methodology causes to some
important advantages such as: Long-term relationship, consist quality, lower cost, special attention and
etc.
Keywords: Supplier Evaluation, TOPSIS, ANP, Order Allocation.
Shahroudi K, Rouydel H. Using a multi-criteria decision making approach (ANP-TOPSIS) to evaluate suppliers in Iran’s auto industry. International Journal of Applied Operational Research 2012; 2 (2) URL: http://ijorlu.liau.ac.ir/article-1-139-en.html