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An integrated approach of ISM and fuzzy TOPSIS for supplier selection

Author

Listed:
  • Tran Thi Tham
  • Nguyen Trong Tri Duc
  • Tran Thi My Dung
  • Hong-Phuc Nguyen

Abstract

Supplier selection is one of the most important tasks that contribute to the success of supply chain management. Choosing the right supplier will bring many benefits to the enterprises, such as costs reduction, profit increase, flexibility and competitiveness improvement. This study is conducted to develop a methodology that provides suitable supplier selection solution. Firstly, a set of 23 criteria are used to analyse the relationships between criteria by using interpretive structural modelling (ISM). The less important criteria will be eliminated though the model. Next, the fuzzy TOPSIS method, which focus on the distance from alternatives to positive ideal solution and negative ideal solution is applied to evaluate and rank suppliers. The result of ISM suggests choosing 22 appropriate criteria among the original 23 criteria used for the supplier selection problem. The result of fuzzy TOPSIS shows the ranking of six suppliers through a case study of a plastic packaging company.

Suggested Citation

  • Tran Thi Tham & Nguyen Trong Tri Duc & Tran Thi My Dung & Hong-Phuc Nguyen, 2020. "An integrated approach of ISM and fuzzy TOPSIS for supplier selection," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 13(5), pages 701-735.
    • Handle: RePEc:ids:ijpman:v:13:y:2020:i:5:p:701-735
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    Cited by:

    1. Amirkeyvan Ghazvinian & Bo Feng & Junwen Feng & Hossein Talebzadeh & Maria Dzikuć, 2024. "Lean, Agile, Resilient, Green, and Sustainable (LARGS) Supplier Selection Using Multi-Criteria Structural Equation Modeling under Fuzzy Environments," Sustainability, MDPI, vol. 16(4), pages 1-22, February.

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