Evaluation of Supplier Selection in Manufacturing Industries using Grey Relational Analysis- A Case Study

Selection of supplier is one of the most critical activities performed by the organizations because of its strategic importance. Over the years a number of quantitative approaches have been applied to supplier selection problems. The selection process is commonly based on their previous performance records, so the ranking determines which supplier will get their supply contract. However a survey on current evaluation methods shows that they are all less objective and lack accurate data processing. These evaluation criteria often conflict, however and it is frequently impossible to find a supplier that excels in all areas. In addition some of the criteria are quantitative and some are qualitative. Thus a methodology is needed that can capture both subjective and objective evaluation measures. In this paper, we presented AHP and Grey Relational Analysis to establish a complete and accurate evaluation model for selecting suppliers based on multiple criteria and places the order quantities among them for a spinning industry KeywordsSupplier Selection, Grey Relational Analysis, AHP..