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Selecting a proper supplier is a crucial problem for the entire manufacturing company because of its strategic importance. Supplier selection problem is a multi-criteria decision making (MCDM) problem which involves both quantitative and qualitative factors, some of which conflict with each other. In order to satisfy the customers’ demand, a good supplier must supply high-quality materials, deliver proper quantities of materials at right time, reduced costs and provide excellent services to the customers’ requirement. Grey theory is a mathematical method based on the theory of Deng (1989) which was put forward in 1982. It is an effective method used to solve problems which involve discrete data and incomplete information. Due to the various advantages of Grey multiple attributes decision, this paper proposes an evaluation method to rank different suppliers based on multiple criteria. The overall performances of six suppliers are evaluated in this paper based on multiple criteria by using a Grey Relational Analysis method. The entire methodology is illustrated with the help of a case study and finally the rank of each supplier is determined according to its results and the optimal supplier is selected.

A Grey Based Decision Making Approach for Supplier Selection