An Empirical Study on Selection of Supply Chain Partner by Multi-Criteria Decision Making Method VIKOR - A Case of Automotive Industry

A supply chain is a network of entities directly or indirectly interlinked and interdependent in performing activities in moving a product or service from supplier to customer. In recent times, the role of purchasing in supply chain continues to receive growing attention. The supplier selection process is a multi-objectives problem, encompassing many tangible and intangible factors include quantitative and qualitative data in a hierarchical manner. In this study, a methodology is proposed to establish the supplier selection criteria and ranking of selected supply chain partners based on these criteria. This is achieved through the employment of powerful multi criteria decision making (MCDM) method VIKOR that will help decision makers in the procurement to attain better quality of products. A case study is carried out to exhibit the effectiveness of the developed method in a firm involved in manufacturing the automotive components.