Combination of TOPSIS and 0-1 Programming for Supplier Selection in Supply Chain Management

Supplier selection decisions are usually made by multiple decision makers according to multiple criteria. A method combining the technique for preference by similarity to ideal solution (TOPSIS) and 0-1 programming was proposed for supplier selection in supply chain management. First, the priority orders of suppliers under each criteria given by individual decision makers were aggregated to the ranking orders in the group´s view by TOPSIS considering weights of decision makers. Then, the final integrated ranking orders of all suppliers were derived from the group´s priority orders of them with respect to each criteria by 0-1 programming. A numerical example was presented to demonstrate the application of the proposed method and the comparisons of the results have shown the method is effective.