Abstract
Any productive or service organization’s success is largely dependent on its ability to choose the best suppliers. Decision-making process affects the price, quality and delivery time of the products produced by these organizations, allowing businesses to produce innovative, high-quality goods at reasonable prices and gain a competitive edge in the market. The problem addressed in the paper is that most manufacturing or service institutions’ decision makers relied solely on their own experiences or on one factor, particularly cost, when comparing providers, which meant ignoring the other criteria. The goal of this article is to assist decision makers in manufacturing and service organizations in selecting the best suppliers based on a variety of criteria. The best suppliers are identified using a three-stage process that integrates the hierarchical analysis process (AHP) with the Technique for Ordering Preferences by Similarity to the Ideal Solution (TOPSIS). The first step is to choose the criteria that will be used to compare providers, and the second is to calculate the relative weights of these criteria using AHP. The third stage involves comparing the options and ranking them in order of best to worst using TOPSIS technology, which makes use of weights that were retrieved using AHP. This paper is implemented at Thi Qar Oil Company, utilizing an Excel sheet for quick and precise calculations.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Marzouk M, Sabbah M (2021) AHP-TOPSIS social sustainability approach for selecting supplier in construction supply chain. Cleaner Environ Syst 2:1–9
Tooranloo HS, Ayatollah AS, Iranpour A (2018) A model for supplier evaluation and selection based on integrated interval-valued intuitionistic fuzzy AHP-TOPSIS approach. Int J Math Oper Res 13(3):401–417
Chi HTX (2016) Supplier selection by using AHP-TOPSIS and goal programming-a case study in Casumina Rubber Company-Vietnam. In: MATEC Web of conferences, vol 68. EDP Sciences, pp 1–5
Salehi S, Amiri M, Ghahramani P, Abedini M (2018) A novel integrated AHP-TOPSIS model to deal with big data in group decision making. In: Proceedings of the international conference on industrial engineering and operations management, pp 1043–1053
Liu Y (2017) A decision tool for supplier selection that takes into account power and performance. Open University (United Kingdom)
Pathan TZ, Kazi MM, Kharghar NM (2015) Evolution of AHP in manufacturing industry l6(12):123–127
Vasina E (2014) Analyzing the process of supplier selection. The application of AHP method
Benyoucef L, Ding H, Xie X (2003) Supplier selection problem: selection criteria and methods. Diss. INRIA
Mu E, Pereyra-Rojas M (2017) Practical decision making using super decisions v3: an introduction to the analytic hierarchy process, Springer
Tavana M, Soltanifar M, Santos-Arteaga FJ (2021) Analytical hierarchy process: revolution and evolution. Ann Oper Res 1–29
Saaty TL (1980) The analytic hierarchy process. McGraw-Hill, New York.
Fentahun TM, Bagyaraj M, Melesse MA (2021) Seismic hazard sensitivity assessment in the Ethiopian Rift, using an integrated approach of AHP and DInSAR methods. Egypt J Remote Sens Space Sci 735–744
Thomas LS, Vargas LG (2012) Models, methods, concepts and applications of the analytic hierarchy process. 2nd (ed), Springer
Marimuthu G, Ramesh G (2016) Comparison among original AHP, ideal AHP and moderate AHP models. Int Res J Eng IT Sci Res 2(5):29–35
Kolios A, Mytilinou V, Lozano-Minguez E, Salonitis K (2016) A comparative study of multiple-criteria decision-making methods under stochastic inputs. Energies 9(7):415–422
Flynn JR (2016) A business process reengineering framework using the analytic hierarchy process to select a traceability technology for spare parts management in capital-intensive industries. Diss. Stellenbosch: Stellenbosch University, pp 1–200
Bera B et al. (2021) Susceptibility of deforestation hotspots in terai-dooars belt of Himalayan foothills: a comparative analysis of VIKOR and TOPSIS models. J King Saud Univ Comput Inf Sci 1–13
Effatpanah SK et al. (2022) Comparative analysis of five widely-used multi-criteria decision-making methods to evaluate clean energy technologies: a case study. Sustainability 14(3):1–33
Verdu FM, Bernabeu G (2016) Project finance and MCDM financial models: an application in renewable energy projects. Diss. Universitat Politècnica de València
Papathanasiou J, Ploskas N (2018) Multiple criteria decision aid. Methods Examples Python Implementations 136
Onder E, Sundus DAG (2013) Combining analytical hierarchy process and TOPSIS approaches for supplier selection in a cable company. J Bus Econ Finance 2(2):56–74
Al-Zubaidy SS, Al-Bayati EI (2019) Applying the TOPSIS approach for selecting the best small project. Wasit J Eng Sci 7(2):19–23
Kengpol A, Rontlaong P, Tuominen P (2013) A decision support system for selection of solar power plant locations by applying fuzzy AHP and TOPSIS: an empirical study, pp 470–481
Maghableh GM, Mistarihi MZ (2022) Applications of MCDM approach (ANP-TOPSIS) to evaluate supply chain solutions in the context of COVID-19. Heliyon 1–14
Bhutia PW, Phipon R (2012) Application of AHP and TOPSIS method for supplier selection problem. IOSR J Eng 2(10):43–50
Hanine M, Boutkhoum O, Tikniouine A, Agouti T (2016) Application of an integrated multi-criteria decision making AHP-TOPSIS methodology for ETL software selection. Springerplus 5(1):1–17
Azimifard A, Moosavirad SH, Ariafar S (2018) Selecting sustainable supplier countries for Iran’s steel industry at three levels by using AHP and TOPSIS methods. Resour Policy 57:1–15
Muhammad J, Rahmanasari D, Vicky J, Maulidiyah WA, Sutopo W, Yuniaristanto Y (2020) Pemilihan supplier biji plastik dengan metode analitycal hierarchy process (AHP) and technique for order preference by similarity to ideal solution (TOPSIS). J INTECH Teknik Industri Univ Serang Raya 6(2):99–106
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2023 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.
About this paper
Cite this paper
Nizar, Z.M., Laith, W.H., Al-Najjar, A.K. (2023). Optimal Decision Making to Select the Best Suppliers Using Integrating AHP-TOPSIS. In: Khanna, A., Polkowski, Z., Castillo, O. (eds) Proceedings of Data Analytics and Management . Lecture Notes in Networks and Systems, vol 572. Springer, Singapore. https://doi.org/10.1007/978-981-19-7615-5_35
Download citation
DOI: https://doi.org/10.1007/978-981-19-7615-5_35
Published:
Publisher Name: Springer, Singapore
Print ISBN: 978-981-19-7614-8
Online ISBN: 978-981-19-7615-5
eBook Packages: Intelligent Technologies and RoboticsIntelligent Technologies and Robotics (R0)