A Modified Technique for Order Preference and its Application to Supplier Selection Problem

Abstract:

Supplier selection is one of the most important activities in supply chain management. The appropriate choice of supplier would help the company in terms of reducing purchase risk, maximizing the overall profit and increasing customer satisfaction. However, the method of selecting appropriate supplier is not straightforward as it involves number of potential companies with diverse criteria. This paper aims to propose a modified technique for order preference by incorporating the concepts of entropy weight, linguistic weighted average and cosine similarity measure. The proposed method is tested with a case of supplier selection problem. Of the five candidate suppliers, it is found that the supplier S₃ is the best candidate. It indicates that the proposed method offers a feasible solution to supplier selection problem.

• Periodical: Advanced Materials Research (Volume 903)
• Pages: 353-358
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.903.353
• Online since: February 2014
• Authors: Adawiyah Otheman, Lazim Abdullah*
• Keywords: Cosine Similarity Measure, Decision-Making, Order Preference, Supplier Selection, Supply Chain Management

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