A grey decision-making and factor analysis technique approach to the supplier selection problem: A case study of Sazeh Gostar Saipa Company

Subject Areas : مدیریت

Maghsoud amiri ¹ , narges saberi ² , hassan haleh ³

1 - استادیار دانشکده مدیریت و حسابداری، دانشگاه علامه طباطبایی ، تهران، ایران
2 - کارشناسی ارشد دانشکده صنایع و مکانیک، دانشگاه آزاد اسلامی، قزوین، ایران (عهده¬دار مکاتبات)
3 - استادیار دانشکده صنایع و مکانیک، دانشگاه آزاد اسلامی، قزوین، ایران

Received: 2011-08-10 Accepted : 2011-09-28 Published : 2012-09-22

Keywords: TOPSIS, Multiple attribute decision making (MADM), Grey Theory, Grey decision-making, Factor analysis technique,

Abstract :

Supplier Selection is a Multiple-Attribute Decision- Making (MADM). The Grey Decision-Making method is a proper technique for ranking suppliers in cases where the existing qualitative attribute is in an uncertain environment. Taking Advantages of the grey theory concept, linguistic variables areturned in togrey numbers and then used in MADM techniques. But an important issue in most MADM techniques such asTOPSISmethod is independencerequest of attributes, which if notconsidered, may lead to false results. The proposed approach in this article is Factor Analysis(FA) technique for determination of independent factors and their substitution with attributes in grey TOPSIS method.In the proposed approach,independent factors areobtained by FA technique after determination ofthe weights of attributes and making initial grey decision- making matrix. Weight of any factor is obtained from average of the attributes' weight related to its factor. Alsocomponents of the grey decision- making matrix after FA rank will be obtainedfrom average of attribute components related to any factor in initial decision- making  matrix. Finally, the suppliers are being ranked by using grey possibility degree.  In this paper, the suggested approach  has been used to ranking  the five suppliers of  SazehGostarSaipa company.