Integration of ABC Analysis with Fuzzy DEMATEL and Fuzzy TOPSIS in Supplier Selection and Ranking Problems

Abstract

While performing Always Better Control (ABC) analysis in an automobile industry, A category items are given higher priority, neglecting B and C category items which comprise 80% of the total inventory. Little attention to tail spend account poses problems in managing suppliers, unscheduled deliveries, and environmental issues. To address this gap a Multi-criteria decision making approach is proposed for supplier selection in each inventory class by integrating ABC Analysis with Fuzzy Decision-making trial and evaluation laboratory and Fuzzy Technique for Order Preference by Similarity to Ideal Solution. The best suppliers are selected based on criteria weights and criteria interrelationships for each A, B, and C inventory items. The study shows that managers have to focus on key criteria rather than a whole set of criteria for A, B, and C inventory suppliers thus saving costs and effort. The results show that delivery and environmentally friendly products as common and important criteria for supplier selection in each inventory items. The research results will help the decision-makers and policymakers in solving the supplier selection problems in the automobile sector and other similar sectors.