Using ANP and ELECTRE Methods for Supplier Selection: Cable Industry Application

Year 2018, Volume: 22 Issue: 5, 1190 - 1198, 01.10.2018

Hakan Öztürk , Ebru Pekel Birol Elevli

https://doi.org/10.16984/saufenbilder.315330

Cited By: 3

Abstract

Business
has to perform their activities in increasingly competitive environment due to
emerging technologies and globalization. To be successful in this competitive
environment, they have to make decisions to ensure superiority over its
competitors. One of the important decisions for the future of the business is
the selection of right suppliers. The right selection of suppliers that will
provide  the necessary resources will be
an advantage to businesses. Choosing the right supplier will lead to increase
in product quality, decrease in costs, to increase customer satisfaction and
production flexibility. Therefore, accurate and impartial manner in the
selection of suppliers is a necessity. In this study, supplier selection
problem is discussed for business operating in the cable industry.

Supplier
selection, due to the excess of the criteria for effective decision-making and
the alternative, is defined as "Multi-Criteria Decision Making
Problem". Different methods have been developed to solve the
multi-criteria decision making problem. In this study, “Analytic Network
Process (ANP)” and “Elimination Et ChoixTraduisant La Realité (ELECTRE)”  methods used to complement each other and it
was applied to the selection of suppliers for a cable manufacturing company operating
in Samsun. Supplier selection criteria used in the study has been identified as
the 6 main criteria and 19 sub-criteria in accordance with the literature.
These criteria may be both qualitative and quantitative. The weight of Criteria
is determined by taking into account the opinions of experts. The information
obtained from them used as input for Super Decision program for ANP
approach.  Then weights of  the criteria 
and the performance of seven suppliers for each criteria  have been used as input for ELECTRE method.
The required calculations are made for the application of ELECTRE method using
Microsoft Excel programme. As a result of these calculations suppliers were
evaluated and ranked. Thus it was determined the best supplier for business.

Keywords

Multi-criteria Decision Making, ANP, ELECTRE, Supplier Selection

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