scholarly journals A Novel Multi-Criteria Decision-Making Model for Building Material Supplier Selection Based on Entropy-AHP Weighted TOPSIS

Entropy ◽  
2020 ◽  
Vol 22 (2) ◽  
pp. 259 ◽  
Author(s):  
Chun-Ho Chen
Keyword(s):  
Decision Making ◽  
Building Material ◽  
Supplier Selection ◽  
Service Providers ◽  
Evaluation Criteria ◽  
Multi Criteria Decision Making ◽  
Topsis Method ◽  
Entropy Weight ◽  
Analytic Hierarchy ◽  
Decision Making Model

The type of criterion weight can be distinguished according to different decision methods. Subjective weights are given by decision makers based on their knowledge, experience, expertise, and other factors. Objective weights are obtained through multi-step calculations of the evaluation matrix constructed from the actual information about the evaluation criteria of the alternatives. A single consideration of these two types of weights often results in biased results. In addition, in order to build an effective supply chain source, buyers must find suitable quality products and/or service providers in the process of supplier selection. Based on the above reasons, it is difficult to accurately select the appropriate alternative. The main contribution of this paper is to combine entropy weight, analytic hierarchy process (AHP) weight, and the technique for order preference by similarity to an ideal solution (TOPSIS) method into a suitable multi-criteria decision making (MCDM) solution. The TOPSIS method is extended with entropy-AHP weights, and entropy-AHP weights are used instead of subjective weights. A novel decision-making model of TOPSIS integrated entropy-AHP weights is proposed to select the appropriate supplier. Finally, we take the selection of building material suppliers as an example and use sensitivity analysis to show that the combination of the TOPSIS method based on entropy-AHP weights can effectively select the appropriate supplier.

scholarly journals A Hybrid Multi-Criteria Decision-Making Approach Based on ANP-Entropy TOPSIS for Building Materials Supplier Selection

Entropy ◽  
2021 ◽  
Vol 23 (12) ◽  
pp. 1597
Author(s):  
Chun-Ho Chen
Keyword(s):  
Decision Making ◽  
Supplier Selection ◽  
Building Materials ◽  
Evaluation Criteria ◽  
Analytic Network Process ◽  
Topsis Method ◽  
Entropy Weight ◽  
Suitable Alternative ◽  
Multi Criteria Evaluation ◽  
Network Process

This article will tell you how to combine “entropy” in the model to reduce the bias of multi-criteria evaluation. Subjective weights are usually determined by decision makers based on their professional background, experience and knowledge, and other factors. The objective weight is obtained by constructing an evaluation matrix of the information based on the actual information of the evaluation criteria of the scheme, and obtained through multi-step calculations. Different decision-making methods are based on different weight types. Considering only one of the two weights often leads to biased results. In addition, in order to establish an effective supply chain, buyers must find suitable merchants among suppliers that provide quality products and/or services. Based on the above factors, it is difficult to choose a suitable alternative. The main contribution of this paper is to combine analytic network process (ANP), entropy weight and the technique for order preference by similarity to an ideal solution (TOPSIS) to construct a suitable multi-criteria decision (MCDM) model. By means of ANP-entropy weights to extend the TOPSIS method, ANP-entropy weights are used to replace subjective weights. A supplier selection decision-making model based on ANP-entropy TOPSIS is proposed. At last, the sensitivity analysis shows that, taking the selection of building materials suppliers as an example, the hybrid ANP-entropy TOPSIS method can effectively select suitable suppliers.

Applying the Multi-Criteria Decision Making Model for Ranking Commercial Banks: The Case of Vietnam

2019 ◽  
pp. 125-133
Author(s):  
Duong Truong Thi Thuy ◽  
Anh Pham Thi Hoang
Keyword(s):  
Decision Making ◽  
Commercial Banks ◽  
Decision Model ◽  
Business Models ◽  
Multi Criteria Decision Making ◽  
Ideal Solution ◽  
Topsis Method ◽  
Decision Making Model

Banking has always played an important role in the economy because of its effects on individuals as well as on the economy. In the process of renovation and modernization of the country, the system of commercial banks has changed dramatically. Business models and services have become more diversified. Therefore, the performance of commercial banks is always attracting the attention of managers, supervisors, banks and customers. Bank ranking can be viewed as a multi-criteria decision model. This article uses the technique for order of preference by similarity to ideal solution (TOPSIS) method to rank some commercial banks in Vietnam.

scholarly journals Multi-criteria decision-making model for supporting manufacturing settlements location in Africa after COVID-19

2021 ◽  
Vol 13 ◽  
pp. 184797902110233
Author(s):  
Stefania Bait ◽  
Serena Marino Lauria ◽  
Massimiliano M. Schiraldi
Keyword(s):  
Decision Making ◽  
Value Chain ◽  
Multinational Enterprises ◽  
Value Added ◽  
Plant Performance ◽  
Multi Criteria Decision Making ◽  
African Countries ◽  
Analytic Hierarchy ◽  
Location Selection ◽  
Decision Making Model

The COVID-19 emergency is affecting manufacturing industries all over the world. Notably, it has generated several issues in the products’ supply and the global value chain in African countries. Besides this, Africa’s manufacturing value-added rate grew only 1.5 since 2018, and the foreign direct investment (FDI) from multinational enterprises (MNEs) remains very low due to high-risk factors. Most of these factors are linked to a non-optimized location selection that can adversely affect plant performance. For these reasons, supporting decision-makers in selecting the suitable country location in Africa is crucial, both for contributing to countries’ growth and companies’ performance. This research aims at presenting a comprehensive multi-criteria decision-making model (MCDM) to be used by MNEs to evaluate the best countries to develop new manufacturing settlements, highlighting the criteria that COVID-19 has impacted. Thus, it has affected countries’ performance, impacting the plant location selection choices. A combination of the Analytic Hierarchy Process (AHP) and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) methods have also been used for comparative analysis. The criteria used in the proposed approach have been validated with a panel of MNEs experts.

scholarly journals A Multi-Criteria Decision-Making (MCDM) Approach Using Hybrid SCOR Metrics, AHP, and TOPSIS for Supplier Evaluation and Selection in the Gas and Oil Industry

Processes ◽  
2018 ◽  
Vol 6 (12) ◽  
pp. 252 ◽  
Author(s):  
Chia-Nan Wang ◽  
Ying-Fang Huang ◽  
I-Fang Cheng ◽  
Van Nguyen
Keyword(s):  
Decision Making ◽  
Supplier Selection ◽  
Raw Materials ◽  
Oil Industry ◽  
Supplier Evaluation ◽  
Multi Criteria Decision Making ◽  
Analytic Hierarchy ◽  
Ahp Model ◽  
Decision Making Unit ◽  
Stability And Accuracy

Suppliers are extremely important in business operations. The supplier ensures the supply of materials, raw materials, commodities, etc. in sufficient quantity, quality, stability, and accuracy to meet the requirements of production and business with low costs and on-time deliveries. Therefore, selecting and managing good suppliers is a prerequisite for organizing the production of quality products as desired, according to the schedule, and with reasonable prices and competitiveness in the market. It is also important to gain the support of suppliers in order to continue to improve and achieve more as a business. The evaluation and selection of a supplier is a Multi-Criteria Decision-Making (MCDM) issue, in which the decision-maker is faced with both qualitative and quantitative factors. In this research, the authors propose an MCDM model using a hybrid of Supply Chain Operations Reference metrics (SCOR metrics), the Analytic Hierarchy Process (AHP) model, and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) approach for supplier evaluation and selection in the gas and oil industry. Using literature reviews on SCOR metrics, all criteria that impact supplier selection are defined in the first stage, the AHP model is applied to determine the weight of each factor in the second stage, and the optimal supplier is presented in final stage using the TOPSIS model. As a result, Decision-Making Unit 5 (DMU-05) is found to be the best supplier for the gas and oil industry in this research. The contribution of this work is to propose a new hybrid MCDM model for supplier selection in the gas and oil industry. This research also introduces a useful tool for supplier selection in other industries.

scholarly journals A MODIFIED MCDM ALGORITHM WITH CUMULATIVE ENTROPY WEIGHTS FOR SELECTING THE WINNER OF THE TENDER

2019 ◽  
pp. 46-51
Author(s):  
A. O. Matin ◽  
F. Misagh
Keyword(s):  
Decision Making ◽  
Evaluation Criteria ◽  
Specific Weight ◽  
Multi Criteria Decision Making ◽  
Efficient Management ◽  
Research Findings ◽  
Utility Rate ◽  
Input Variables ◽  
Decision Making Model ◽  
Cumulative Entropy

The aim of this research is to evaluate the proposed bids using impartial and entropy weights in a multi-criteria decision-making model. We use matrix data for hypothetical bidding involving nine criteria, with the presence of four domestic and two foreign contractors. Then, using cumulative entropy function, we estimate the entropy weights and use it in a multi-criteria decision-making model. The criteria of experience and knowledge in the field, good history and satisfaction in previous projects, financial and support capabilities, localization of the contractor, having the experience at the site of the project, availability and readiness of equipment and machines, the adequacy of technical staff, the work quality system, the efficient management and appropriate management system, creativity and innovation in similar tasks are the input variables of the decision model. After analyzing them, the proposals are prioritized through a multi-criteria decision-making model. The research findings include Shannon entropy and cumulative entropy-based weights for evaluation criteria and after applying the specific weight for the proposed quotation, the utility rate of each contractor is calculated. The results showed that the use of modified multi-dimensional decision-making method is more advantageous than traditional methods of evaluating bidding proposals in selecting the winner of a tender, and also using cumulative entropy weights in comparison with Shannon's leads to a more realistic choice of contractors.

scholarly journals A New Extension to a Multi-Criteria Decision-Making Model for Sustainable Supplier Selection under an Intuitionistic Fuzzy Environment

2019 ◽  
Vol 11 (19) ◽  
pp. 5413 ◽  
Author(s):  
Patchara Phochanikorn ◽  
Chunqiao Tan
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supplier Selection ◽  
Multi Criteria Decision Making ◽  
Sustainable Supply Chain ◽  
Suggested Approach ◽  
Intuitionistic Fuzzy ◽  
Fuzzy Environment ◽  
Sustainable Supplier Selection ◽  
Decision Making Model

The increase of environmental pollution has led to the rise of sustainable awareness in recent years. This trend has motivated various industries to recognize the importance of implementing sustainable supply chain practices to seek economic, environmental and social advantages. From a sustainability perspective, selecting a suitable supplier is the main component of modern enterprises. It is also a challenging problem since several criteria concerning supplier selection are interdependent with a complex character. Therefore, the contribution of this paper is a new extension to multi-criteria decision-making model (MCDM) under an intuitionistic fuzzy environment for sustainable supplier selection (SSS) based on sustainable supply chain management SSCM practices. It consists of intuitionistic fuzzy set theory (IFS) with a decision making trial and evaluation laboratory (DEMATEL) combined with an analytic network process (ANP) to identify uncertainties and interdependencies among criteria as well as analyzing the criteria weights. We modified Vise Kriterijumska Optimizacija I Kompromisno Resenje (VIKOR) to evaluate and rank the desired level of sustainable supplier performance. The suggested approach is conducted by a case study from the Thailand palm oil industry. Results show that the proposed model not only can find the most suitable sustainable supplier, but also the enterprises can aid their suppliers in improving sustainability by using the proposed method and can improve enterprises’ socio-environmental performance, which is key to achieving sustainable development.

scholarly journals A HYBRID MCDM MODEL ENCOMPASSING AHP AND COPRAS-G METHODS FOR SELECTING COMPANY SUPPLIER IN IRAN

2012 ◽  
Vol 18 (3) ◽  
pp. 529-543 ◽  
Author(s):  
Sarfaraz Hashemkhani Zolfani ◽  
I-Shuo Chen ◽  
Nahid Rezaeiniya ◽  
Jolanta Tamošaitienė
Keyword(s):  
Decision Making ◽  
Functional Ability ◽  
Supplier Selection ◽  
Evaluation Criteria ◽  
Multi Criteria Decision Making ◽  
Delivery Reliability ◽  
Distance Delivery ◽  
Technology Level

This paper is aimed at utilizing a hybrid multi-criteria decision making (MCDM) model for selecting a supplier. First, eight evaluation criteria, including cost, quality, distance, delivery reliability, reputation, technology level, compatibility and development ability are identified. The A nalytic H ierarchical P rocess (AHP) is initially used for calculating the weight of each criterion. The CO mplex PR oportional AS sessment of alternatives to G rey relations (COPRAS-G method) is adopted for ranking and selecting suppliers. In order to illustrate the functional ability of the developed model, Kalleh Company is chosen as a case study and can be used as a pattern for supplier selection and future researches.

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