This document summarizes a study on supplier selection at Lucas-TVS using multi-criteria decision making. The study aims to develop a systematic supplier selection procedure considering criteria like cost, quality, time of delivery and service. It will use the TOPSIS and AHP methods on existing supplier ratings and records collected from Lucas-TVS to select the best supplier for the company's needs while addressing limitations of using secondary data and potentially arbitrary scorings.

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

2. 1.1 SUPPLIER SELECTION
• Important in purchase decision
• Criteria to be considered
– Cost
– Quality
– Time of delivery
– Service

3. 1.2 NEED FOR THE STUDY
• Faulty selection of a supplier can lead to
– Huge costs
– Loss of market

4. 1.3 SCOPE OF THE STUDY
• Specific to LUCAS – TVS.
• NOT generic.
• Under the given criteria by the company.

5. 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.

6. 2.1 LITERATURE REVIEW
• Various methods/models for prequalification
of suppliers
– Categorical methods
– Data envelopment analysis
– Cluster analysis
– Case-based-reasoning

7. • 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)

8. 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

9. 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.

10. 3.6 Limitations of study
• The data is secondary in nature.
• The scorings may be arbitrary.

11. 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"