Evaluation of the Performance and Ranking of Suppliers of a Heavy Industry by TOPSIS Method

Abstract

The purpose of this paper is to evaluate the performance of the suppliers of a heavy industry and to rank them based on their performance by using Multi Criteria Decision Making Tool (MCDM) – TOPSIS Method. The Criteria and Sub Criteria for the supplier performance evaluation has been decided by a team of experts from the manufacturing industry. DEMATEL is used to calculate the weightage of the criteria and TOPSIS is used to evaluate and rank the suppliers based on these criteria. This paper ranks the suppliers of the industry based on their performance. It also provides a clear picture about various factors affecting the performance of the suppliers. This research provides an insight to all the suppliers as to where they stand with respect to their performance. It helps them identify the factors in which they need to strengthen in order to improve their performance. It also provides a competitive environment for improving their performance which ultimately aids the manufacturing industry with better results from the suppliers.