www.tjprc.org SCOPUS Indexed Journal editor@tjprc.org A HYBRID MCDM MODEL FOR SUPPLIER SELECTION IN SUPPLY CHAIN SANATAN RATNA, ASHISH GOSWAMI, KUMAR ANAND, ANAND KR. RAI & AKASH YADAV Department of Mechanical Engineering, ASET, Amity University, Noida, Uttar Pradesh, India ABSTRACT Decision makers in SMEs across the world are in dilemma as a lot of suppliers with varying suitability are available in the market due to globalization and the liberalization of the Indian economy. The decision needs to be taken about the selection of the best supplier while keeping into account the various degrees of variations in the different criteria. This needs to be done to form an agile manufacturing environment. The current research work deals with the selection of the supplier based on six criteria among twenty-five suppliers. In order to achieve this, a hybrid MCDM model which consists of Grey Relational Analysis (GRA), Analytical Hierarchy Process (AHP) and Technique for Order Performance by Similarity to Ideal Solution (TOPSIS). GRA is used to shortlist the most important criteria among a number of criteria available. AHP is used to give weightage to the various selected criteria. At the end, the TOPSIS method is used to select the best supplier among the available twenty-five suppliers. The hybrid GRAPH-TOP model hence developed is used to analyze the supply chain management of an SME (forging industry) in Delhi NCR. KEYWORDS: SME, MCDM, AHP, GRA, TOPSIS, Agile manufacturing environment & Supply Chain Management Received: Jan 22, 2019; Accepted: Feb 12, 2019; Published: Apr 13, 2019; Paper Id.: IJMPERDJUN201915 INTRODUCTION Decision makers in SMEs across the world are spoilt for choice as the number of alternatives lying in front of them is vast. The decision needs to be taken about the selection of the best supplier while keeping into account the various degrees of variations in the different criteria. The current research work deals with the selection of the supplier based on six criteria among twenty-five suppliers. In order to achieve this, a hybrid MCDM model which consists of Grey Relational Analysis (GRA), Analytical Hierarchy Process (AHP) and Technique for Order Performance by Similarity to Ideal Solution (TOPSIS). GRA is used to shortlist the most important criteria among a number of criteria available. AHP is used to give weightage to the various selected criteria. At the end, the TOPSIS method is used to select the best supplier among the available twenty-five suppliers. The hybrid GRAPH-TOP model hence developed is used to analyze the supply chain management of an SME (forging industry) in Delhi NCR. METHODOLOGY The proposed methodology consists of ant integrated MCDM approach combining GRA, AHP &TOPSIS. The grey system theory was developed by Deng Julong of China in the year 1982. The concept of Grey system is basically a representation of an incomplete or uncertain information system as the grey color lies between black (no information) & white (all information). The method can convert a multi-response problem into a single response optimization problem by finding grey relation grades (GRG). AHP has been proved as a simple yet effective tool for multi-criteria decision making with plenty of applications reported in the fields of management science, Original Article International Journal of Mechanical and Production Engineering Research and Development (IJMPERD) ISSN (P): 2249-6890; ISSN (E): 2249-8001 Vol. 9, Issue 3, Jun 2019, 143-150 © TJPRC Pvt. Ltd.