Using a multi-criteria decision making approach (ANP-TOPSIS) to evaluate suppliers in Iran’s auto industry

Supplier selection is a multi-criteria problem which includes both tangible and intangiblefactors in these problems if suppliers have capacity or other different constraints two problems willexist: which suppliers are the best and how much should be purchased from each selected supplier?the objective of this paper is to present an integrated model and a supporting approach for effectivesupplier selection decisions and determined optimum order allocation. therefore, an integratedapproach of anp- topsis (analytic network process and technique for order preference bysimilarity to ideal solution) is proposed in choosing the best suppliers and defined the optimumquantities order among selected suppliers by using a mathematical model (multi-objective linearprogramming). hence, after library studies and interview with experts, managers and specialists insupply chain management filed, decision criterion was identified through brain storming contains ofseven main criteria for suppliers selection process. then in the second section for order allocation toevery selected suppliers in first section; we used a (molp) multi-objective linear programmingmodel. therefore objectives and subjective of suppliers and automotive company were identified inthis section. results show that applying a two phase anp-topsis methodology causes to someimportant advantages such as: long-term relationship, consist quality, lower cost, special attention andetc.