An integrated fuzzy AHP and TOPSIS model for supplier evaluation

Abstract

In today's modern supply chains, the adequate suppliers' choice has strategic meaning for entirecompanies' business. The aim of this paper is to evaluate different suppliers using the integratedmodel that recognizes a combination of fuzzy AHP (Analytical Hierarchy Process) and the TOPSISmethod. Based on six criteria, the expert team was formed to compare them, so determination oftheir significance is being done with fuzzy AHP method. Expert team also compares suppliersaccording to each criteria and on the base of triangular fuzzy numbers. Based on their inputs, TOPSISmethod is used to estimate potential solutions. Suggested model accomplishes certain advantages incomparison with previously used traditional models which were used to make decisions aboutevaluation and choice of supplier.