SUPPLIER SELECTION USING MULTI-
CRITERIA DECISION MAKING
at
LUCAS-TVS
S.ANGARAYAN
2010201004

1.1 SUPPLIER SELECTION
• Important in purchase decision
• Criteria to be considered
– Cost
– Quality
– Time of delivery
– Service

1.2 NEED FOR THE STUDY
• Faulty selection of a supplier can lead to
– Huge costs
– Loss of market

1.3 SCOPE OF THE STUDY
• Specific to LUCAS – TVS.
• NOT generic.
• Under the given criteria by the company.

1.4 STATEMENT OF THE PROBLEM
• Presence of the numerous suppliers for
various processes.
• Faulty selection can cause a huge loss.
• Absence of a systematic selection process.

2.1 LITERATURE REVIEW
• Various methods/models for prequalification
of suppliers
– Categorical methods
– Data envelopment analysis
– Cluster analysis
– Case-based-reasoning

• Decision models for the final choice-phase
– Linear weighting models
– Total cost of ownership models
– Mathematical programming models
– Statistical models
– Artificial intelligence (AI)-based models
– Technique For Order preference BY Similarity to
Ideal Situation
– AHP (Analytical Hierarchy Process)

3.1 Objectives of the study
• Primary Objective
– To arrive at a supplier decision that will best suit
the needs of the company.
• Secondary Objective
– To devise a systematic procedure for the supplier
selection decision.
• TOPSIS
• AHP

3.4 Data Collection
• The data is being collected from the
Sales/Purchase departments of the Lucas-TVS.
• The data consists of the existing records and
ratings.

3.6 Limitations of study
• The data is secondary in nature.
• The scorings may be arbitrary.

REFERENCE
Basic Techniques Framework
Luitzen de Boer, Eva Labro, Pierangela Admiral Tool & Manufacturing
Morlacchi, “A review of methods “Supplier Rating System”
supporting supplier selection”.
Extended Study
• Betül Özkan, Hüseyin Başlıgil, Nergis Şahin, “Supplier Selection Using
Analytic Hierarchy Process: An Application From Turkey”
• Ali Nazeri, Hadi Meftahi, Prof. Awaluddin bin Mohamed Shaharoun.
"Supplier Evaluation and Selection in SCM using Fuzzy AHP"