Uncertain Inventory Management Using TOPSIS and FAHP Method in Automotive Supply Chain

Abstract

Inventory management for automotive supply chain environment is complicated and uncertain due to fluctuated demands. A 1st tier company performed inventory itself collaborative with subcontractors. Traditionally, inventory is stocked by the mother company. Presently, each subcontractor must manage such inventory by themselves and they are required to evaluate their performance in order to make sure they can serve the uncertain demands. This paper proposes a novel technique for assisting a supply chain manager to make effective decision making to select suitable subcontractors to achieve competitiveness using TOPSIS and Fuzzy Analytic hierarchy process (FAHP).