An integrated multi-objective decision making process for the performance evaluation of the vendors

The objective of the study is to select the best performing supplier among the group according to the prioritisation of performance criterion through the application of techniques like MISM (modified interpretive structural modelling), MICMAC (impact matrix cross-reference multiplication applied to a classification), and AHP (analytical hierarchy process). To understand the interaction between the factors and to prioritise them, MISM technique has been applied by using which weights have been calculated for the performance factors and establishing a contextual relationship between the available factors and then ranking of the factors is done based on the results obtained. In the MICMAC analysis, performance criteria are classified into four clusters depending upon their driving power and dependence power. This helps to find out which criteria are influencing the supplier selection process. AHP is used to rank the supplier to find the best one from the group of suppliers. After ranking the suppliers, sensitivity analysis has been applied to determine the most critical criteria i.e. how sensitive is the ranking of the alternative to the change in weights of the criterion or the alternatives. A study was done in an automotive component manufacturing industry in the southern part of India. Finally, validation of the model is performed by the sensitivity analysis.