An integrated model for supplier selection: an automobile industry case study

In manufacturing industries, supplier selection is considered to be an important decision in managing the supply chain. Today's globally competitive business environment requires suppliers to supply raw materials and outsourced parts punctually – in the right quantity and with consistent quality. Manufacturers are increasingly concerned about supplier selection since reliable suppliers enable them to reduce inventory costs and improve product quality. The present paper, therefore, proposes a model based on the integration of the Analytic Hierarchy Process (AHP) and Grey Relational Analysis (GRA) for supplier selection. The additive normalisation method is used as the prioritisation method to calculate the priority vectors. We also developed a decision support system using Excel to perform the mathematical analysis and obtain the results. The case study was conducted in a leading automobile components manufacturer to demonstrate the application of the proposed model.