Supplier Selection in Blood Bags Manufacturing Industry using-TOPSIS Model

Venkatesh,V.G., Paul J., Milan T.,Vijees, V., Anshad, M., Rameshwar Dubey*
Introduction
In the urrent !m"etiti#e w!rld, mana$ement !% su""ly hain #ertial needs t! be m!nit!red
%!r the suess t! the "r!urement %unti!n irres"eti#e !% the industry. &ealth are su""ly
hain is be!min$ m!re dynami and needs l!ts !% su""!rt in terms !% $i#in$ "r!urement
deisi!n %ramew!rk that enables them t! "er%!rm e%%iiently. It is m!re !m"le' in health
are industry #is(a)(#is !ther industries beause !% the im"at !n "e!"le*s health re+uirin$
ade+uate and aurate medial su""ly a!rdin$ t! the "atient*s needs ,-eier,.//01. The
main stake h!lders identi%ied in the health are su""ly hains are2 medial de#ie
manu%aturers, "harma "r!duers and in%!rmati!n ser#ie "r!#iders al!n$ with e+ui"ment
manu%aturers ,Pitta et al, 34451. In the areas !% health are, bl!!d trans%usi!n "r!ess is
ha#in$ hi$h attenti!n these days beause !% inrease in demand and sa%ety e'"etati!ns !% the
d!nated bl!!d. ,Rytila and 6"ens, 34478 Reyn!lds et al., 344.1. 6e#eral studies "ertainin$ t!
the bl!!d su""ly hain in the areas suh as "r!urement, st!ra$e and trans"!rtati!n ha#e been
%!und ,9ha"man et al.,34458 Dalen et al.,344/8 D!bbin et al.,344/1. The r!le !% bl!!d
,!lleti!n1 ba$s in the health are industry is hi$hly im"erati#e and bein$ !bser#ed as !ne !%
the ritial elements in their su""ly hain. These items as they a%%et the +uality !% su""ly
hain, they are termed as ritial materials and t! be s!ured %r!m a""r!#ed su""liers !nly
wh! ha#e the "r!#en re!rd !% meetin$ the hi$h standards set u" by the industry and
re$ulat!ry auth!rities ,:ilkins!n, 344;1. The standards e'"eted %r!m these su""liers always
learly e'"ressed in the !"eratin$ !ntrat and a$reed am!n$ the stakeh!lders. The bl!!d ba$
manu%aturin$ industry is a nihe industry whih alls %!r the a""liati!n !% multi riteria
deisi!n makin$ in its !#erall "r!urement "r!ess with the %u<<y !r unertain situati!ns.
The study !n bl!!d ba$ su""ly hain is #ery im"!rtant as the e%%et !uld be ended in
traumati and su""lier s!ures are #ery limited. 6eletin$ the ri$ht su""liers is m!st !%ten a
s!"histiated "r!ess as it sa#es si$ni%iant am!unt %!r the !r$ani<ati!n ,&a+ et al., 34471.
&ene, su""lier de#el!"ment and mana$ement is #ery ruial in this "artiular d!main !%
interest. The ri$ht s!ure an "r!#ide the ri$ht +uality !% material !n time at a reas!nable
"rie ,&ei<er and Render, 344.1. It !uld be !ne !% the m!st di%%iult "r!esses %!r an
!r$ani<ati!n t! deide u"!n. :eber et al.,,.//.1 ar$ues that in any "r!duti!n "r!ess, raw
material and !m"!nent !sts themsel#es arry =4> !% the t!tal !st. Due t! the lar$e su""ly
base and the %at that it w!uld !st a l!t t! a !m"any, it is im"erati#e t! ha#e a r!bust
su""lier seleti!n "r!ess. This is due t! de"endene !n their su""liers t! meet ust!mers*
demands. This alls %!r s!me real deisi!n makin$ systems t! hel" mana$ers make the a"t
deisi!n based !n many +ualitati#e and +uantitati#e riteria. Vari!us the!retial and
em"irial ha#e been !nduted in the su""lier?su""lier seleti!n "r!ess. Traditi!nal
meth!d!l!$ies !% the su""lier seleti!n "r!ess in researh literature inlude the ate$!rial
meth!d, the !st(rati! meth!d, wei$hted("!int e#aluati!ns, mathematial "r!$rammin$
m!dels, linear !r mi'ed inte$er "r!$rammin$ t! $!al and multi(!bjeti#e linear "r!$rammin$
m!dels, Data @n#el!"ment M!dels, and statistial !r "r!babilisti a""r!ahes and tehni+ues
suh as A&P and AAP ,Timmerman, @., ./;78 D!bler et al.,.//48 Gh!dsy"!ur et al.,.//;8
Bahraman et al.,344C8 :eber et al.,34448 Dli#eira et al.,34438 Ean et al.,344C8 Ten$ et
al.,34401.
Multi riteria deisi!n makin$ ,M9DM1 tehni+ues, e#!l#ed !#er the "eri!d, ha#e $i#en the
s!lid %ramew!rk %!r the su""lier seleti!n "r!esses in#!l#in$ b!th +ualitati#e and
+uantitati#e %at!rs. These M9DM meth!ds hel" t! s!l#e the real w!rld deisi!n issues. This
is beause they an handle b!th multi"le and !n%litin$ riteria. This "a"er tries t! a""ly the
Tehni+ue %!r Order Pre%erene by Similarity t! Ideal S!luti!ns ,TDP6I61, "r!"!sed by
&wan$ and E!!n ,./;.1, with a %u<<y situati!n %!r su""lier seleti!n "r!ess in the bl!!d
ba$ manu%aturin$ industry. This is beause !m"anies !%ten de"end !n their su""liers t!
meet di#ersi%ied ust!mers* demands. The tehni+ue w!uld be able t! a!mm!date s!me
de$ree !% subjeti#ity that !%ten ann!t be e'"ressed in "ure numeri sales and re+uires
lin$uisti e'"ressi!ns. The w!rk adds a new dimensi!n t! the a""liati!n !% !"erati!ns
researh tehni+ue in the health are set!r, as awareness and a""liati!n !% M9DM
tehni+ues in the least e'"l!red d!mains are $ainin$ "r!minene. The "a"er is !r$ani<ed as
%!ll!ws 2 6eti!n 3 disusses the re#iew !% the w!rk !#erin$ -l!!d ba$ su""ly hains and
their im"!rtane in !#erall health are, a""liati!n !% M9DM tehni+ues in the su""lier
seleti!n "r!ess, seleti!n and %eatures !% TDP6I6 in the #ari!us en#ir!nments, with the
detailed disussi!ns !n attributes in the seleted d!main, bl!!d ba$ manu%aturin$8 6eti!n C
disusses the meth!d!l!$y inludin$ the disussi!ns !n the seleti!ns #ari!us "arameters8
6eti!n 5 ends with !nlusi!ns disussi!ns !n the %indin$s %!ll!wed by 6eti!n 0 e'"lainin$
the limitati!ns and %urther s!"e !% the researh in the bl!!d su""ly hains.
2. Literature Review
6u""lier seleti!n and mana$ement is always a base and !mm!n "r!blem %!r any su""ly
hains and many tehni+ues ha#e been e#!l#ed !#er the "eri!d t! %ailitate the "r!ess
e%%eti#ely. The "resent w!rk !% re#iew has been attem"ted thr!u$h the systemati literature
re#iew ste"s by %!ll!win$ the "r!t!!l !% "lannin$, !ndutin$, and re"!rtin$?disseminati!n.
,Tran%ield et al.,344C1. The re#iew "r!ess has been strutured as %!ll!ws2 &ealth are su""ly
hain es"eially, bl!!d mana$ement system, bl!!d ba$ manu%aturin$ and a""liati!n !%
#ari!us M9DM tehni+ues in the su""lier seleti!n "r!ess and %inally !n TDP6I6 meth!d.
-ased !n systemati re#iew "r!ess, the e'erise has been !nduted n!t !nly limited t!
"ublished j!urnals listed in the databases but als! !m"rised #ari!us $enuine res!ures,
re"!rts "ublished by authenti a$enies suh as :&D, rele#ant industry res!ures, internet
and interati!n with the stakeh!lders and "ratiti!ners. The e'erise has als! hel"ed us t!
build di%%erent "ers"eti#e !% bl!!d trans%usi!n su""ly hain.
Blood Manage!ent in t"e #ealt" $are Supply $"ain
The inreasin$ demand %!r health are ser#ies with the better %ailities and redued !sts is
always a hallen$in$ task t! mana$e the res!ures in its su""ly hain. The bl!!d ser#ie has
been re!$ni<ed as a $l!bal business and the "r!duts are be!min$ !mm!dities ,6tarr,
34441. Mana$in$ the su""ly and demand !% bl!!d in the su""ly hain is #ery ritial t! the
li%e !r death and thus mana$in$ them is a hallen$in$ task. ,D!bbin et al.,344/8 Pierskalla,
34401. The w!rk !% Jennin$s, ,./=C1 is the "i!neer !ne in the bl!!d su""ly hain with the
identi%iati!n !% three im"!rtant attributes suh as, sh!rta$e, wasta$e and the !st !%
trans"!rtati!n and in%!rmati!n. Als!, bl!!d has been !ntinu!usly re!$ni<ed and researhed
as a sare and "rei!us res!ure ,Vam#akas, .//78 G!!dn!u$h et al.,.///8 Reyn!lds et al.,
344.8 9ha"man and 9!!k, 344., Paul @hrlih Institute, 34..1. Im"!rtane !% st!ra$e and
in#ent!ry and #ari!us in#ent!ry m!dels in the bl!!d su""ly systems ha#e been re"!rted by
#ari!us researhers. The im"!rtant w!rks are $i#en in the %!ll!win$ table.
Auth!r? Eear Disussi!n?Findin$s
Aahmias,./;31 Di%%erene between !n#enti!nal "erishable in#ent!ry
mana$ement and bl!!d in#ent!ry mana$ement thr!u$h
assi$ned and unassi$ned in#ent!ry.
Prasta!s,./;51 A""liati!n !% DR tehni+ues in -l!!d su""ly hain
Dwens et al., ,344.1 Analy<ed the im"at !% a#era$e a$e !% units !n the
in#ent!ry "er%!rmane in bl!!d 6u""ly hains
R!k et al., 34448 Rytila et al.,
34478 Pierskella, 34408 Delen et al.,
344/
Im"!rtane !% bl!!d su""ly in the Trans%usi!n Industry
Bastasaliaki, 344;8 9ardi$an et al.,
344/8 Mur"hy and M 6weeney,
344/8
6e"arati!n !% the !m"!nents in the bl!!d and their
st!ra$e "attern.
-r!dheim et al., ./=08 9!hen and
Prasta!s, ./;.8 B!"ah et al.,
344;8 Van Dijik et al., 344/8
-l!!d -ank In#ent!ry M!dels
-elien et al., ,34..1 Re#iew !n the bl!!d "r!duts su""ly hains
6ebastian, &:6 ,34.C1 VMI im"lementati!n in the -l!!d su""ly hain
The r!le !% bl!!d banks and the ass!iated de#ies are #ery im"erati#e in their su""ly hains.
,9hrist!"her, 34401.Further, it is e#ident %r!m the literature that st!ra$e, maintenane !% the
bl!!d in the entire su""ly hain is hi$hly a !m"le' "r!ess in the !ld su""ly hain. ,:&D,
34401. There are standards "ublished by them. Fr!m the ab!#e "art !% re#iew, we !uld
establish the im"!rtane !% bl!!d in the health are su""ly hain and the status !% the researh
with res"et its su""ly hain !#erin$ in#ent!ry, su""ly hain strate$y. &!we#er, the
authenti in%!rmati!n !n the bl!!d su""ly hain su""!rtin$ de#ies and their res"eti#e
manu%aturin$ "r!esses um su""ly hains with their n!rms are #ery sare in the
mana$ement and sienti%i literature. The ne't "art !% the re#iew will !#er the $l!bal
medial de#ies, "!siti!n !% bl!!d ba$s in the !#erall de#ies industry %r!m the a#ailable
literature and their im"!rtane in the health are su""ly hain.
Medical devices and Blood %ags
Medial de#ies are inte$ral "art !% health are industry. Fr!m sim"le banda$e t!
s!"histiated de#ies medial de#ies %!rms an essential "art !% health are system. Aew
medial tehn!l!$ies and de#ies are inreasin$ly bein$ "ushed int! the market as a "!tential
way t! redue health are !sts and im"r!#e the +uality !% are. ,9hatterjee,344/1. The
medial de#ies industry is an attrati#e and hi$hly "r!%itable !ne. 9!m"anies in this d!main
!"erate in a hi$hly !m"etiti#e en#ir!nment and re+uire a hi$h a"ital e'"enditure in !rder t!
de#el!" inn!#ati#e "r!duts. Further, medial de#ies industry is als! harateri<ed by the
absene !% +uality in%!rmati!n and "rie trans"areny ,R!bins!n, 344;8 Institute !% Mediine
R!und table Re"!rt, 34.41. Alth!u$h s!me de#ies are s!ld in !m"etiti#e !mm!dity
markets, sellers !% the m!re e'"ensi#e and s"eiali<ed de#ies !"erate in !li$!"!listi
markets with %ew !m"etit!rs ,Pauly et al., 344;1. Medial "r!duts inlude %r!m sim"le
banda$es t! the li%esa#in$ aut!mated mahines. The "r!dut sa%ety and their risks are always
the maj!r issues t! be handled. ,Maruhek et al., 34..1.
:ilkins!n ,344;1 summari<es all the e+ui"ment and materials used in the bl!!d su""ly hain.
They are bl!!d !lleti!n m!nit!rs, d!n!r !uhes, bl!!d ba$s, saline s!luti!ns, bl!!d
$r!u"in$ rea$ents, and many m!re. Am!n$ th!se items, Im"!rtane !% -l!!d ba$ in the
trans%usi!n mediine s"ae is hi$h, whih ensures sterility in the "r!esses !% d!nati!n and
trans%usi!n. They are dis"!sable and "re%erred re"laements %!r $lass b!ttles. Guality !% ba$s
is utm!st im"!rtant, as they are li%e sa#in$ de#ies. The #ari!us se$ments are %urther sub(
di#ided t! inlude di%%erent bl!!d bankin$ e+ui"ment s"ei%i t! eah se$ment. A!w, in s!me
!untries like India, the em"hasis has been $i#en t! re(use the ba$s, ,beause !% land re%ill
issues1 but still it is at the l!w ae"tane le#el due t! #ari!us !nerns !% washin$ meth!ds,
leaka$es and "!tential sterility issues. The -l!!d -a$ market an be br!adly se$mented int!
bl!!d !lleti!n e+ui"ment, bl!!d "r!essin$ e+ui"ment, bl!!d st!ra$e e+ui"ment, and bl!!d
ell se"arat!rs. ,Medial -uyer, 34.31. It als! disusses the de#el!"ment !% the latest
tehn!l!$ies with res"et t! bl!!d ba$ manu%aturin$ industry with #ari!us ty"es. :ilkins!n
,344;1 eluidates h!w the !untries %ae the "r!blems in the re$ulati!ns with res"et t! bl!!d
ba$ industry desribin$ it as the l!n$ and strin$ent !m"liane n!rm. The manu%aturin$
re+uirements and re$ulati!ns als! disussed brie%ly in that disussi!n. It has been ar$ued that
due !nsiderati!n has been $i#en t! the seleti!n !% the su""liers in the manu%aturin$
"r!ess %!r maintainin$ the +uality as that is the utm!st "ri!rity, by disussin$ the "arameters
used in the "r!ess. The "arameters ha#e been disussed e'tensi#ely in the !min$ seti!ns.
Further re"!rt %r!m medialbuyer.!.in analy<es the status !n $l!bal markets !% bl!!d ba$s
and its trends in the !min$ years. The authenti literature re#iew is #ery limited with res"et
t! the bl!!d ba$ manu%aturin$ industry, there is a $!!d s!"e %!r e'"l!rin$ the industry in
terms !% "r!urement %!r the bl!!d ba$s. The Fi$ure . $i#es a shemati %l!w !%
manu%aturin$ in -l!!d ba$ industry. In the ne't seti!n, the su""lier seleti!n thr!u$h
Multiriteria Deisi!n Makin$ M!dels has been disussed e'tensi#ely.

&ig ' ( Blood Bag Supply $"ain
Supplier Selection t"roug" Multiple-$riteria )ecision Ma*ing +M$)M, Met"ods
Multi 9riteria Deisi!n Makin$ ,M9DM1 meth!ds struture the "r!blem with multi"le
,+ualitati#e as well as the +ualitati#e %at!rs1 t! arri#e at an ae"table deisi!n. It hel" the
analysts t! in!r"!rate the trade(!%%s, multi"le and !n%litin$ $!als ,:an$ et al., 344/1.
D#er =4 tehni+ues !% M9DM ha#e been de#el!"ed in the "ast 54 years. They are ha#in$
a""liati!ns in di%%erent d!mains with #ari!us !mbinati!ns and the researh in this d!main
has $!t the m!mentum durin$ last deade. Ae#ertheless, &! et al.,,34.41 ar$ue that
indi#idual tehni+ues are m!re "!wer%ul than !mbined tehni+ues. A ta'!n!my has been
!nstruted under di%%erent ate$!ries ,6hyur et al., 34471.
All these m!dels an be lassi%ied int! three br!ad ate$!ries. ,H!ken, 344=1. They are 2
Model types Representative Tec"ni-ues +e.a!ples,
Value Measurement M!dels
Analyti &ierarhy Pr!ess ,6aaty, ./;41 and
#ariati!ns !% A&P, Multi Attribute Itility
The!ry ,Beeney, R. et al.,./=71.
G!al, As"irati!n and Re%erene He#el
M!dels
G!al Pr!$rammin$ ,I$ni<i!, ./=71 and TDP6I6
,&wan$ et al.,./;.1
Dutrankin$ Tehni+ues @H@9TR@ ( @Himinati!n @t 9h!i' Traduisant la
R@alitJ @liminati!n and 9h!ie @'"ressin$
Reality ,R!y,./7;1 and PRDM@T&@@(
Pre%erene Rankin$ Dr$ani<ati!n Meth!d %!r
@nrihment !% @#aluati!ns ,-rans et al., ./;01
In manu%aturin$ industries, the raw materials and !m"!nent "arts an e+ual u" t! =4 "er
ent !% the "r!dut !st ,Gh!dsy"!ur et al., .//;1 and !#er 04 "er ent !% all +uality de%ets
an be traed bak t! "urhased material ,Talluri et al., 34471. The su""lier seleti!n "r!blem
re+uires the !nsiderati!n !% multi"le !bjeti#es, and an be #iewed as a multi(riteria
deisi!n(makin$ ,M9DM1 "r!blem. ,-hutta et al., 34438 Ramanathan, 344=1.
Hast %ew years, m!re attenti!n has been $i#en in the su""lier seleti!n m!dels usin$ #ari!us
t!!ls, as it "lays an im"erati#e r!le !n !ntr!llin$ the e%%iieny !% "r!duti!n "r!ess.
@#aluati!n !% su""liers is a "r!ess that leads !m"anies t! selet their desired su""liers.
This "r!ess has tw! main aims, whih are t! redue all !sts !% "urhasin$ and t! inrease
the !#erall #alue !% the "urhasin$ ,&and%ield et al., 34..1. 6u""lier seleti!n meth!ds in the
bl!!d ba$ su""ly hain are hi$hly ine#itable as they maintain hi$hly strin$ent !nditi!ns in
the su""ly !% +uality raw materials ,:ilkins!n, 344;1. The w!rk !% Diks!n ,./771 was !ne
!% the !ri$inal studies in su""lier seleti!n area with 3C attributes t! assess the "er%!rmane
!% su""liers. 6wi%t ,.//01 selets and analyses the seleti!n "r!ess with 3. riteria.
Researhers "r!"!sed su""lier e#aluati!n and seleti!n meth!ds %!r strate$i s!urin$ based
!n l!n$(term relati!nshi"s and strate$i "artnershi"s. ,Bamann et al.,34458 &!n$ et al., 34408
Ara< et al., 344=8 &uan$ et al.,344=8 Drd!!badi et al.,20091. The seleti!n m!dels d! n!t
!nsider !m"le' and unertainty in business situati!ns in the #ari!us "urhasin$
en#ir!nments. ,de -!er et al., .//;1. In the last deade, :!rk %r!m Hi et al.,.//;1 is !ne !%
the "i!neer w!rks in the %u<<y en#ir!nments. Dhdar et al. ,34451 attem"ted t! e#aluate the
su""liers* "er%!rmane in a %u<<y en#ir!nment. They !nsidered $enerati!n !% %u<<y rules.
Fen$ et al.,34401 "r!"!sed a seleti!n meth!d based !n %u<<y deisi!n the!ry and
harateristis !% su""ly hain mana$ement %!r the ri$ht !mbinati!n and seleti!n am!n$
andidate su""liers and !uts!ured "arts. -ayrak et al.,344=1 w!rked !n a %u<<y multi
riteria $r!u" deisi!n makin$ a""r!ah t! su""lier seleti!n based !n %u<<y arithmeti
!"erati!n. 9h!u et al. ,344;1 "r!"!sed strate$y ali$ned %u<<y sim"le multi(attribute ratin$
tehni+ue ,6MART1 %!r seletin$ the su""lier seleti!n. These attributes are analysed ,Table
.1 thr!u$h #ari!us M9DM tehni+ues ,-!ran et al., 344/12
Ken<, ./;.8 Timmermann, ./;78 9ate$!rial Meth!d, :ei$hted P!int
meth!d
Pan, ./;/8 9haudhry et al.,.//C8 :eber et
al.,.//C8 &ajidimitri!u et al., 34438.
G!al and Mathematial Pr!$rammin$ %!r
Vend!r 6eleti!n.
Gre$!ry,./;78 6!uku", ./;=8 Vend!r Per%!rmane Matri' A""r!ah
Th!m"s!n, .//48 Vend!r Pr!%ile Analysis
Aarasimhan,./;C8 -arbar!s!$lu et al.,.//=8
Gh!dsy"!ur et al., .//;8 Fae< et al.,344=,
Bahraman, 344C8 -!<da$ et al., 344C8 &a+ et
al., 34478 -ayrak et al., 344=8 9han et al.,
,344;18 B!ul, 6ar!j et al., 34..8
Analyti &ierarhy Pr!ess,A&P1 L
Fu<<y A&P, AAP
:eber et al., .//78 Aarasimhan et al.,344.8 Vend!r Rati!nali<ati!n and Pe%!rmane
@ast!n et al., 34438 Ramanathan, R.,344C8
Ean$ et al.,344C8 :u, 344/8 T!l!! et al.,
34..8
anlaysis thr!u$h Data @n#el!"ment
Analysis ,D@A1.
Ta%le ' /pplication of various M$)M tec"ni-ues in Supplier Selection
Fr!m the ab!#e multi"le meth!ds t! s!l#e the real time business issues, Tehni+ue %!r Drder
Pre%erene by 6imilarity t! Ideal 6!luti!n ,TDP6I61 !ntinue t! $ain im"!rtane in the
su""lier mana$ement %ield. . The "a"er "r!"!ses the tehni+ue !mbined with Fu<<y
a""r!ah t! hel" in the su""lier seleti!n "r!ess !% bl!!d su""ly hain, whih is the least
e'"l!red area. The ne't seti!n re#iews the meth!d !% TDP6I6 and its a""liati!n in the
#ari!us areas !% su""ly hain mana$ement.
TOPSIS
&wan$ et al., ,.//.1 "i!neered the !ne"t !% TDP6I6. The m!del !nsiders b!th the
"!siti#e and ne$ati#e ideal s!luti!ns. P!siti#e riteria ma'imi<e the bene%it riteria and
minimi<e the !st, whereas the ne$ati#e idea s!luti!n ma'imi<es the !st riteria and
minimi<es the bene%it riteria. 9hen et al.,(1992) ncorporated the fuzzy method of
anayss wth TOPSIS method. Over the ast two decades, ths technque
has evoved and apped to the varous ndustra decson steps.
Technque has been dentfed as one of the powerfu technques n MCDM
methods and apped ntensvey n the areas of supper seecton n
procurement functon.|Zhang et a. (2012), Awasth et al.(2011),
Buyukozkan et al.(2011), Daaah et al.(2011), Deng et al.(2011),
Fazoahtabar et al.(2011), |oa et al.(2011), Kara (2011), Lao and Kao
(2011), Sngh et al.(2011), Wang et al.(2011), Roghanan et al.(2010),
Bhattacharya et al.(2007)|. A compete revew of appcaton of TOPSIS
was done by Ma|d et al.(2012). Technque has been apped n the
ndustry areas such as Desgn (Shh, 2008; Wang, 2009), Marketng, Rsk
predcton and Customer reatonshp management (Peng et al.,2011;
Zand et al.,2011;), Heath, Safety and envronment management (Grass
et al., 2009; Svaprakasam et al., 2011; Yue, 2011). Further, Tabe 2
represents the appcaton of TOPSIS based technques n some dfferent
domans.
/ut"or +s, Paper Purpose
6ekar, V., Mulanjur, G.
and Thia$arajan, A
,34.C1
6ustainable !ne"t
seleti!n usin$ m!di%ied
%u<<y TDP6I6.
The ase !r$ani<ati!n needs t! selet
the best !ne"t am!n$ the de"ited
and used t! in%use sustainability
durin$ early "r!dut desi$n and
de#el!"ment "hases usin$ TDP6I6.
6ianaki, D.A.8 Mas!um,
M.A.6 ,34.C1
A Fu<<y TDP6I6 A""r!ah
%!r &!me @ner$y
Mana$ement in 6mart Grid
:ith 9!nsiderin$
&!useh!ldersM Pre%erenes.
This "a"er dem!nstrates a %u<<y
TDP6I6 deisi!n(makin$ a""r!ah t!
+uanti%y and e#aluate !nsumersM
"re%erenes at the mir!(le#el when
usin$ eletrial de#ies a!rdin$ t! a
real(time "rie sheme !% demand
res"!nse in !rder t! best mana$e the
use !% a""lianes. This enables and
su""!rts h!useh!lders t! ma'imi<e
their "artii"ati!n in demand res"!nse
"r!$rams.
Gu!, :, -ai, D, 6han, F,
9hen, 6, Khan$, G, L
Pan, & ,34..1
9!m"aris!n !% !mbined
tehni+ues suh as
A&P?TDP6I6 with
AAP?TDP6I6 in 6eleti!n
!% Manu%aturin$ Vend!rs.
The rankin$ results !% A&P?TDP6I6
and AAP?TDP6I6 were !m"ared
with eah !ther in seleti!n !%
manu%aturin$ #end!rs and it was
!nluded that AAP?TDP6I6 is m!re
reas!nable and %easible than
A&P?TDP6I6.
Hiu, 9., Fra<ier, P.,
Bumar, H., MaGre$!r,
9. and -lake, A. ,34471
9athment(:ide :etland
Assessment and
Pri!riti<ati!n Isin$ the
Multi(9riteria Deisi!n(
Makin$ Meth!d TDP6I6.
In this study, a multi(riteria deisi!n(
makin$ meth!d, TDP6I6 ,the
Tehni+ue %!r Drder Pre%erene by
6imilarity t! Ideal 6!luti!n1, was
ada"ted t! assist in the r!le !%
assessin$ wetland !nditi!n and
rehabilitati!n "ri!rity in the 9larene
Ri#er 9athment ,Aew 6!uth :ales,
Australia1.
9ha, E and Jun$, M
,344C1
6atis%ati!n assessment !%
multi(!bjeti#e shedules
usin$ neural %u<<y
meth!d!l!$y.
A meth!d!l!$y %!r "r!#idin$ a
!nsistent dimensi!nless and $l!bal
shedule assessment s!re %!r #ari!us
"er%!rmane indiat!rs is "r!"!sed.
9hu, T.9h. ,34431 Faility l!ati!n seleti!n
usin$ %u<<y TDP6I6 under
$r!u" deisi!ns.
Presents a %u<<y TDP6I6 m!del under
$r!u" deisi!ns %!r s!l#in$ the %aility
l!ati!n seleti!n "r!blem, where the
ratin$s !% #ari!us alternati#e l!ati!ns
under di%%erent subjeti#e attributes
and the im"!rtane wei$hts !% all
attributes are assessed in lin$uisti
#alues re"resented by %u<<y numbers.
Fen$,9.M. and :an$,
R.T. ,344.1
9!nsiderin$ the %inanial
rati!s !n the "er%!rmane
e#aluati!n !% hi$hway bus
industry.
A "er%!rmane e#aluati!n "r!edure
%!r hi$hway buses with the %inanial
rati! taken int! !nsiderati!n is
attem"ted t! !nstrut. TDP6I6
meth!d is used %!r the !utrankin$ !%
hi$hway bus.
Den$,&., Eeh,9.&. and
:illis,R.J. ,34441
Inter(!m"any !m"aris!n
usin$ m!di%ied TDP6I6
with !bjeti#e wei$hts.
F!rmulati!n !% inter(!m"any
!m"aris!n "r!ess as a multi(riteria
analysis m!del, TDP6I6.
Ta%le 2 /pplication of TOPSIS tec"ni-ues in various do!ains
The ab!#e re#iew e'erise !n the bl!!d ba$ market as well as M9DM( TDP6I6 tehni+ue
#i#idly su""!rts the a""liati!n !% %u<<y TDP6I6 tehni+ue in the seleted d!main !%
interest, -l!!d ba$ manu%aturin$. It als! lea#es the s!"e %!r a""liati!n !% !ther M9DM
tehni+ues in the "artiular %ield !% interest.
0. Met"odology
The !bjeti#e !% this researh "a"er is t! identi%y the buyin$ "arameters and de#el!" the
m!del thr!u$h TDP6I6 tehni+ue %!r the bl!!d ba$ industry hel"in$ them t! selet the
+uali%ied and ri$ht su""lier. The "r!ess has been d!ne in the tw! sta$es 2 .1 6eleti!n and
researhin$ !n the suitable "arameters %!r su""lier seleti!n %!r bl!!d ba$ raw material
su""ly8 31 De#el!"ment !% a TDP6I6 meth!d!l!$y e#entually it w!uld hel" the seleti!n
"r!ess by rankin$ them. F!r the seleti!n !% ri$ht "arameters, su""ly hain e'euti#es in
bl!!d ba$ industry in India s"ei%ially with the "r!urement and su""lier seleti!n
res"!nsibilities were !ntated. These "r!%essi!nals re"resent #ari!us bl!!d ba$
manu%aturin$ !m"anies in India, w!rkin$ %r!m the e'euti#e r!le t! the strate$i r!le.
Their #iews were a"tured usin$ a semi(strutured inter#iew manner. Due t! the
!n%identiality, !m"any*s name has n!t been re#ealed in this w!rk. The su""liers are
analysed !n the basis !% s!me dimensi!ns and di%%erent riteria whih !mes under th!se
dimensi!ns ,Tin$ et al., 344;8 Drd!!badi, 344/1. As a %irst ste", the "!siti!n !% bl!!d ba$
has been !n%irmed with res"et t! "urhase "!rt%!li! matri' ,Brilja,./;31. It is "laed in
the hi$h !m"le'ity and hi$h strate$i im"!rtane +uadrant ,Fi$.31. At the base le#el, it
su""!rts the su""lier*s r!le and their im"!rtane in bl!!d ba$ su""ly hains.

&i$h
6trate$i
Im"!rtane
!% 9ate$!ry
6u""lier
Bloo
d
Bag
H!w
&i$h
H!w
Fi$ 3 ,Ad!"ted %r!m Brilja, ./;3 and Medial -uyer, 34.31
Fr!m the e'hausti#e list, they ha#e been asked t! h!!se and substantiate the rele#ane t! the
bl!!d ba$ raw material su""ly "r!ess. The initial .4 dimensi!ns and 3C riteria were drilled
d!wn t! 0 "ri!rity dimensi!ns and .0 riteria ,5 sub(riteria1 a%ter ha#in$ intense disussi!ns
and re#iews with the seleted %irms* "urhasin$ team members. The hierarhial struture in
the %!rm !% attribute tree is sh!wn in Fi$. C and the harateristis !% eah dimensi!n with
res"et t! the bl!!d ba$ su""ly hain ha#e been e'"lained bel!w.
.
9!m"le'ity !% Value hain -ene%its a"ture
&ig 0 /ttri%ute tree for supplier selection
Product 1uality This "arameter indiates the "erenta$e !% "r!duts whih !n%!rms t! the
standards set by the +uality de"artment !% y!ur %irm. 6ine bl!!d ba$ is a li%e sa#in$ "r!dut,
the "r!dut +uality is !% utm!st im"!rtane. Any %ailure t! meet the raw material +uality may
ha#e a harm%ul e%%et !n the ust!mer. Patients and "hysiians need t! be in%!rmed ab!ut the
bene%its and risks !% medial de#ies and the !m"anies makin$ the de#ies sh!uld be held
a!untable i% they %ail t! ahie#e this standard ,9ur%man et al., 344/1. &ene, the +uality
"lays an im"!rtant r!le in the seleti!n !% su""liers.
M!st !% the Indian !m"anies are %ailin$ t! meet the Gl!bal standards in the bl!!d ba$
+uality8 e#entually they are unable t! a+uire a !nsiderable market share in the !#erseas
market. F!r e'am"le, 9itri aid, used as a stabilisin$ a$ent sh!uld meet the Indian
Pharma!"!eia ,IP1 ? Inited 6tates Pharma!"!eia ,I6P1? -ritish Pharma!"!eia ,-P1
standards %!r s!lubility, arseni !ntent, sul"hate !ntent, ir!n !ntent et. 9!n%!rmane
+uality and desi$n +uality are the tw! !m"!nents !% +uality. The %!rmer is de%ined as the
absene !% de%et and the latter is the de$ree !% ust!mer satis%ati!n with the "r!duts
harateristis. The n!n(!n%!rmane !% the raw materials t! the +uality standards an ause
Internal !r @'ternal %ailure. Inlike internal %ailure, e'ternal %ailure an shake the $!!dwill !%
the !m"any. The attributes !% this dimensi!n are
i1 De%et 6ra" Rati!2 Perenta$e !% "r!duts sra""ed !r %!und de%eti#e due t!
the l!w +uality raw material.
ii1 Pr!dut rejeti!n Rati!2 Perenta$e !% "r!duts that are !m"letely rejeted
due t! the l!w +uality raw material.
iii1 Guality system2 A "arameter t! hek whether the su""lier has +uality
erti%iati!ns? standards.
)elivery Perfor!ance There an be situati!ns where the su""lier may n!t adhere t! the
deli#ery date and there an be a sh!rta$e in the +uantity !% "r!duts deli#ered. The lesser the
delay and sh!rta$e better will be the Deli#ery Per%!rmane dimensi!n. A l!w Head time
hel"s in reduin$ in#ent!ry and thereby brin$in$ d!wn the w!rkin$ a"ital re+uired %!r the
manu%aturer.
The attributes !% this dimensi!n are2
i1 Deli#ery Time delays2 Deli#ery time is the time re+uired t! trans"!rt the
"r!dut %r!m su""lier t! manu%aturer. This BPI measures e'tra time re+uired t!
deli#er the !rder.
ii1 Deli#ery Guantity sh!rta$e2 Di%%erene in +uantity !rdered t! the +uantity
deli#ered.
iii1 Head time t! !rder2 Head time is the time between reei#in$ an !rder and
deli#erin$ the "r!dut !r ser#ie t! the ust!mer.
Durin$ an e"idemi !utbreak, there w!uld be a sur$e in the demand %!r the bl!!d ba$s. I% the
lead time taken is t!! hi$h !r the deli#ered +uantity is l!w %r!m the su""lier, then it be!mes
#ery di%%iult %!r the manu%aturers t! meet the demand. F!r e'am"le, the lead time %!r
Aeedle h!lder assembly ,A&A1, E !nnet!r, Tube !nnet!r et. are m!re than .44 days.
&ene it is im"erati#e t! identi%y the su""liers wh! an "r!#ide the raw materials in lar$e
+uantities and with lesser lead time.
&inancial Status The #alues de%inin$ this dimensi!n an be !btained %r!m the %inanial
statements !% the su""lier. In the Indian -l!!d -a$ industry, the su""liers wh! are +uali%yin$
t! internati!nal standards are less. In suh ases, the mana$er has t! !uts!ure it %r!m the
%!rei$n nati!ns. 6ine establishin$ a relati!nshi" with the su""lier itsel% is time !nsumin$
and has !st im"liati!ns, the mana$er sh!uld l!!k !n a l!n$ term "ers"eti#e by
intr!s"etin$ the %inanial #iability and %inanial "er%!rmane !% the su""lier. This dimensi!n
hel"s the manu%aturer t! understand the %inanial health !% the su""lier as well as ab!ut the
l!n$ term trade reliability !% the ust!mer.
The attributes !% this dimensi!n are
i1 Assets and debts2 Isin$ this we an %ind !ut h!w muh !% the su""liers assets
are %inaned by b!rr!wed m!ney.
ii1 In!me and @arnin$s2 In!me sh!ws the su""liers sales re#enue and earnin$s,
the "r!%it a%ter !"eratin$ e'"enses. I% the In!me t! e'"ense rati! is s! hi$h ,ie. ab!#e
industry standards1, we an !nlude that there is s!me !"erati!nal %law in the
su""lier side and i% n!t reti%ied, the b!tt!m line will be a%%eted. In se#ere ases, this
an lead t! s!l#eny als!.
iii1 9ash Fl!ws2 9ash %l!w sh!ws the am!unt !% m!ney whih has %l!wed in !r
!ut !#er a "eri!d !% time. 9!m"anies with $!!d ash in%l!ws in#est m!ney in m!re
and m!re business de#el!"ment !r RLD ati#ities. Th!se !m"anies an "ay !%% their
liabilities in time.
Purc"asing costs The t!tal am!unt s"ent t! buy a "r!dut is the "urhasin$ !st !% the
"r!dut. 6!me !% the raw materials and !m"!nents used in the manu%aturin$ !% bl!!d ba$s,
%!r e'am"le PV9 ,P!ly#inyl hl!ride1 materials, A&A ,Aeedle &!lder Assembly1, 9R9
,9!nentrated Red ,bl!!d1 9ell1 %ilter et., are !stly and these !st w!uld then be arried
!#er t! the end user. A lar$e "!rti!n !% the Indian market %!r bl!!d ba$ !nsists !% "!!r
"e!"le, wh! ann!t a%%!rd this inremental !st. &ene it is #ital %!r an !r$ani<ati!n t! selet
a su""lier wh! an "r!#ide the raw materials at least "rie and at ri$ht +uality. The
NPurhasin$ !stsO "arameter inludes the !st !% the raw materials, har$es s"end t! desi$n
and manu%ature the "r!dut, the trans"!rtati!n !st, the "r!%its !% the seller, Drderin$ !sts
et. This w!uld ha#e a asadin$ e%%et !n the end "r!dut "rie, ad#ersely a%%etin$ the
ust!mer. The BPIs ass!iated with the Purhasin$ !sts are 2
i1 Pr!dut Prie2 Hatest "rie !% the "r!dut !r the urrent "rie whih a %irm
s"end t! buy the "r!dut.
ii1 Trans"!rtati!n !st2 Am!unt s"ends t! brin$ the "r!dut %r!m the su""lier t!
y!ur manu%aturin$ unit.
iii1 Drderin$ 9!sts2 inludes the !sts !% "re"arin$ and issuin$ a "urhase !rder.
2ood !anage!ent Principles +2MP,
:!rld &ealth Dr$ani<ati!n Re"!rt ,:&D Re"!rt, 34..1 has s"ei%ied G!!d Manu%aturin$
Praties ,GMP1 %!r a health are manu%aturin$ unit. Fr!m the re!mmended "raties,
3 dimensi!ns and 5 riteria are taken and %inali<ed a%ter series !% brainst!rmin$ sessi!n with
the industry e'"erts. The dimensi!ns are i1 Pers!nnel and ii1 -uildin$ and %aility.
Personnel The su""lier sh!uld ha#e en!u$h number !% +uali%ied "ers!nnel t! arry !ut the
manu%aturin$ tasks. Al!n$ with assurin$ +uality, the su""lier has t! make sure that the
"ers!nnel are $i#en initial and !ntinu!us trainin$. This dimensi!n de%ines the +uali%iati!n
!% the "ers!nnel w!rkin$ in the manu%aturin$ units and their hy$iene re+uirements.
6u""liers are e'"eted t! maintain the re!rds and strit "ratie !n the same. -el!w are the
tw! attributes !% this dimensi!n are
i1 Pers!nnel +uali%iati!ns2 This attribute is the measure !% the +uali%iati!n !% the
em"l!yees in#!l#ed in the "r!duti!n "r!ess. The "ers!nnel sh!uld be well
#ersed with the manu%aturin$ "r!esses and "raties. In !rder t! kee" u" the
+uality standards, they sh!uld be $i#en induti!n as well as !ntinu!us trainin$.
J!b r!tati!n sh!uld be $i#en at re$ular inter#al s! as t! kee" the em"l!yees m!re
!m"etent.
ii1 Pers!nnel &y$iene2 The "ers!nnel sh!uld be trained in "ers!nal hy$iene. They
sh!uld n!t be all!wed t! w!rk i% he is su%%erin$ %r!m any in%eti!us diseases.
Pers!nnel sh!uld wear lean l!thes and "r!teti#e a""arels and sh!uld be
instruted t! a#!id diret !ntat with the in#ent!ry s! as t! "re#ent
!ntaminati!n. 6m!kin$, drinkin$ and eatin$ sh!uld n!t be all!wed in the
"r!duti!n area. The "ers!nal hy$iene "r!edure sh!uld be a""lied t! e#ery!ne
wh! enters the "r!duti!n area.

Building and &acility The "laement !% the buildin$, the lay!ut !% the entire "r!duti!n
area, hy$iene en#ir!nment an ha#e an im"at !n the +uality !% the bl!!d ba$ "r!duti!n.
&ene, %!ll!win$ "arameters ha#e been inluded2
i1 Desi$n and !nstruti!n2 The l!ati!n !% the buildin$ and the lay!ut !% the
w!rk s"aes sh!uld be desi$ned in suh a way t! minimi<e !ntaminati!n.
The "ers!nnel sh!uld be "r!#ided with t!ilet %ailities, the lab!rat!ries sh!uld
be se"arated %r!m any %!rei$n "artile entry and the raw materials sh!uld als!
be se"arated %r!m eah !ther and "aked well.
ii1 Itilities2 The utilities that !uld a%%et the "r!dut +uality sh!uld be well
maintained and ser#ied at re$ular inter#als.
)evelop!ent of TOPSIS !odels
In this seti!n, "a"er will disuss the ste"s in#!l#ed in de#el!"in$ TDP6I6 m!del. T!
maintain the !n%identiality !% su""lier names, we ha#e taken the n!tati!n !% A., A3 and AC.
Step '2 T! identi%y the riteria whih need t! be !nsidered while deidin$ an alternati#e.
Then lassi%y these riteria as diret !r indiret. Diret means m!re the better ,e.$., Guality1,
and indiret means less the better ,e.$., !st1.
:ith the hel" !% industry e'"erts we ha#e identi%ied Purhasin$ 9!sts, Pr!dut Guality,
Finanial 6tability, Deli#ery Per%!rmane, and the Pr!duti!n Failities and
"urhasin$9a"aity as !ur main riteria. @ah !% its attributes has been menti!ned in the
earlier seti!n. :e an lassi%y Pr!dut Guality, Finanial 6tability, Deli#ery Per%!rmane
and Pr!duti!n Failities L 9a"aity t! be !ur diret riteria and Purhasin$ 9!st t! be !ur
l!ne indiret riteri!n.
Step 22 T! deide !n the alternati#es.
:e are assumin$ !ur C alternati#es t! be A., A3 and AC.
Step 02 T! de%ine the lin$uisti terms and the %u<<y ratin$s %!r b!th alternati#es and the
riteria Hin$uisti terms mean ratin$s suh as P!!r, G!!d, Very G!!d et., in ase !%
alternati#es and H!w, &i$h, Very &i$h et., in ase !% the riteria. Fu<<y Ratin$s here
re"resent the Trian$ular Fu<<y Aumber ,TFA1. TFA will be in the %!rm A P ,a, b, 1.
Q
,A1
,'1 P
Het us assume there are m "!ssible alternati#es A
i
,i P ., 3....m1. These alternati#es need t! be
e#aluated a$ainst n riteria 9
j
,j P ., 3....n1. The wei$hts !% the riteria are den!ted by w
j
,j P
.,3....n1. The ratin$s %!r eah alternati#e A
i
with res"et t! eah riteri!n 9
j
$i#en by eah
deisi!n maker d
k
,k P ., 3...B1 are den!ted by D
k
P '
ijk
,i P ., 3....m8 j P ., 3....n8 k P .,
3....B1 with membershi" %unti!n Q
,A1
,'1.
:e ha#e de%ined the lin$uisti terms and the %u<<y ratin$s %!r b!th riteria and the
alternati#es as sh!wn in the tables C and 5 res"eti#ely.
0 x<a
(x-a)/ (b-a) axb
(c-x)/ (c-b) bxc
0 x>c
Very Poor VP 1 1 3
Poor P 1 3 5
Far F 3 5 7
Good G 5 7 9
Very Good
VG 7 9 9
Triangular Fuzzy Scale
Lngustc Terms for crtera ratngs
Linguistic Term
Ta%le 0 Linguistic Ter!s for t"e $riteria Ratings
Very Low VL 1 1 3
Low L 1 3 5
Medum M 3 5 7
Hgh H 5 7 9
Very Hgh VH 7 9 9
Lngustc Terms for aternatve ratngs
Triangular Fuzzy Linguistic Term
Ta%le 3 Linguistic Ter!s for t"e /lternatives Ratings
Step 32 T! rate eah !% the riteria based !n the lin$uisti terms ,and %u<<y numbers1. This
must be d!ne by !lletin$ the %eedbak %r!m e'"ert deisi!n makers. Dne this is d!ne, we
must alulate the a$$re$ate wei$ht %!r eah riteri!n. I% the %u<<y ratin$ '
ijk
P ,a
ijk
, b
ijk
,
ijk
1
and the wei$ht w
jk
P ,w
jk.
, w
jk3
, w
jkC
1, iP., 3....m and jP., 3....n are $i#en by the k
th
deisi!n,
then the a$$re$ate %u<<y ratin$ ,'
ij
1 !% alternati#es and with res"et t! eah riteri!n an be
alulated as
,'
ij
1 P ,a
ij
, b
ij
,
ij
1
:here,
a
ij
P minRa
ijk
1 b
ij
P ,.?B1 * ,S
kP. t! B
Rb
ijk
T
ij
P ma'R
ijk
T ....,.1
And the a$$re$ate %u<<y wei$ht ,w
j
1 !% eah riteri!n is %!und as
,w
j
1 P ,w
j.
, w
j3
, w
jC
1
:here,
:
j.
P minRw
jk.
T w
j3
P ,.?B1 * ,S
kP. t! B
Rw
jk3
T w
jC
P ma' Rw
jkC
T ....,31
The im"!rtane !% eah !% the riteria has been deided by e'"erts ,D., D3 and DC1 in the
industry. The ratin$s ,lin$uisti terms1 $i#en by C e'"erts ha#e been menti!ned in Table2 0.
:e are assumin$ that in D.*s e'istin$ seleti!n "r!ess, he %irst eliminate all the hi$hly
"ried su""liers. And then he $!es in %!r seleti!n !% a su""lier based !n his !m"any*s
seleti!n "r!ess. This is urrently bein$ "ratied in a %irm in India, whih we d! n!t want
t! re#eal as it w!uld a%%et the %irm*s re"utati!n..T! alulate the riteria wei$ht, we need t!
!n#ert the lin$uisti ratin$ int! trian$ular %u<<y numbers and a$$re$ate as "er the %!ll!win$
%!rmula2 Het us assume that there are C deisi!n makers.
$riteria )irect4 Indirect )' )2 )0
/ggregate
weig"t
Purhasin$ 9!st Indiret VG VG VG =
/.4
4 /
Pr!dut Guality Diret G VG VG 0
;.C
C /
Finanial 6tability Diret F F F C
0.4
4 =
Deli#ery Per%!rmane Diret G VG VG 0
;.C
C /
-uildin$ and Faility Diret F G G C
7.C
C /
Pers!nnel Diret F G VG C
=.4
4 /
Ta%le 5 $riteria Influencing t"e Supplier Selection
Step 52 T! als! !llet the %eedbak %r!m industry e'"erts !n their ratin$s !% eah alternati#es
with res"et t! eah riteri!n. And then, the a$$re$ate wei$ht is alulated.
The ratin$ ,lin$uisti term1 %!r eah !% the alternati#es $i#en by industry e'"erts are tabulated
in table 7.
/ggregate fu66y rating for t"e alternatives
$riteria
/lternative
s )' )2 )0
/ggregate &u66y
Rating
Purhasin$ 9!st
A. H H H . C.44 0
A3 H H VH . 3.CC 0
AC V& V& V& = /.44 /
Pr!dut Guality
A. & V& & 0 =.7= /
A3 & & M C 7.CC /
AC V& V& & 0 ;.CC /
Finanial 6tability
A. & H M . 0.44 /
A3 H H M . C.7= =
AC V& & V& 0 ;.CC /
Deli#ery Per%!rmane
A. H VH VH . ..7= 0
A3 & & M C 7.CC /
AC & V& & 0 =.7= /
-uildin$ and Faility
A. & V& & 0 =.7= /
A3 & & M C 7.CC /
AC V& V& & 0 ;.CC /
Pers!nnel
A. H VH VH . ..7= 0
A3 & & M C 7.CC /
AC & V& & 0 =.7= /
Ta%le 7 /ggregate &u66y Ratings for t"e /lternatives
Step 72 T! !nstrut the %u<<y deisi!n matri' 2
The %u<<y deisi!n matri' ,Table=1 %!r the riteria and the alternati#es is determined as
re"resented bel!w
: P Uw
.
, w
3
.... w
n
V
'
..
'
.3 ....
'
.n
D P
'
3.
'
33 ....
'
3n
... ... .... ...
'
m.
'
m3 ....
'
mn
:here '
ij
P ,a
ij
, b
ij
,
ij
1 and w
j
P ,w
j.
, w
j3
, w
jC
1
A1 1.00 3.00 5.00 5.00 7.67 9.00 1.00 5.00 9.00 1.00 1.67 5.00 5.00 7.67 9.00 1.00 1.67 5.00
A2 1.00 2.33 5.00 3.00 6.33 9.00 1.00 3.67 7.00 3.00 6.33 9.00 3.00 6.33 9.00 3.00 6.33 9.00
A3 7.00 9.00 9.00 5.00 8.33 9.00 5.00 8.33 9.00 5.00 7.67 9.00 5.00 8.33 9.00 5.00 7.67 9.00
Budng and
Facty Purchasng Cost Product Ouaty Fnanca Stabty Devery Performance Personne
Ta%le 8 &u66y )ecision Matri. for t"e /lternatives
Step 82 T! n!rmali<e the %u<<y deisi!n matri'. The deisi!n matri' ,Table ;1 is n!rmali<ed
usin$ a linear sale trans%!rmati!n. The n!rmali<ed deisi!n matri' R is $i#en by
R P Ur
ij
V
m'n
iP., 3....m8 jP., 3....n
r
ij
P a
ij
, b
ij
,
ij


j
*
j
*
j
*
where,
j
* P ma'
i
R
ij
T %!r all Diret 9riteria
r
ij
P a
j
(
, a
j
(
, a
j
(


ij
b
ij
a
ij
where, a
j
(
P min
i
Ra
ij
T %!r all Indiret 9riteria ....,C1
A1 0.20 0.33 1.00 0.56 0.85 1.00 0.11 0.56 1.00 0.11 0.19 0.56 0.56 0.85 1.00 0.11 0.19 0.56
A2 0.20 0.43 1.00 0.33 0.70 1.00 0.11 0.41 0.78 0.33 0.70 1.00 0.33 0.70 1.00 0.33 0.70 1.00
A3 0.11 0.11 0.14 0.56 0.93 1.00 0.56 0.93 1.00 0.56 0.85 1.00 0.56 0.93 1.00 0.56 0.85 1.00
a
|
-
c
|
*
Budng and
Facty
3.00
9.00
3 1
Purchasng Cost Product Ouaty Fnanca Stabty
9
Devery Performance
1
Personne
1.00
9.00
1
9 9 9
Ta%le 9 :or!ali6ed &u66y Ratings for t"e /lternatives
Step 92 T! !nstrut the wei$hted n!rmali<ed matri' by multi"lyin$ the n!rmali<ed %u<<y
deisi!n matri' ,reated in ste" =1 by the wei$hts !% e#aluati!n riteria ,alulated in ste" 51.
V P U#
ij
V
m'n
, i P., 3....m8 j P., 3....n ....,51
:here, #
ij
P r
ij
,.1w
j
Als! t! determine the Fu<<y P!siti#e Ideal 6!luti!n ,FPI61 and Fu<<y Ae$ati#e
Ideal 6!luti!n ,FAI61.
A
*
P , #
.
*
#
3
*
.... #
n
*
1 ....,01
:here #
j
*
P ma'R#
ij
T, i P., 3....m8 j P., 3....n
A( P , #
.
(
#
3
(
.... #
n
(
1 ....,71
:here #
j
(
P minR#
ij
T, i P., 3....m8 j P., 3....n
A1 1.40 3.00 9.00 2.78 7.10 9.00 0.33 2.78 7.00 0.56 1.54 5.00 1.67 5.40 9.00 0.33 1.30 5.00
A2 1.40 3.86 9.00 1.67 5.86 9.00 0.33 2.04 5.44 1.67 5.86 9.00 1.00 4.46 9.00 1.00 4.93 9.00
A3 0.78 1.00 1.29 2.78 7.72 9.00 1.67 4.63 7.00 2.78 7.10 9.00 1.67 5.86 9.00 1.67 5.96 9.00
FPIS
FNIS
9.00 9.00 7.00 9.00
Budng and
Facty
9.00
1.00 0.56 0.33 1.67
9.00
0.33
Personne
0.78
Purchasng Cost Product Ouaty Fnanca Stabty Devery Performance
Ta%le ; <eig"ted :or!ali6ed /lternatives
Step ;2 T! alulate the distane !% eah alternati#e %r!m the FPI6 and FAI6.
The distane between 3 trian$ular %u<<y numbers a P ,a
.
,a
3
,a
C
1 and b P ,b
.
,b
3
,b
C
1, is alulated
by the %!rmula 2
d,a,b1 P W,,,a
.
X b
.
1
3
Y ,a
3
X b
3
1
3
Y ,a
C
Z b
C
1
3
1 ? C1
6imilarly, the distane between eah !% the wei$hted alternati#e ,#
ij
1 %r!m FPI6 ,#
j
*
1 and
FAI6 ,#
j
(
1 an be alulated by
d
i
*
P S
j P. t! n
d
#
,#
ij,
#
j
*
1 , i P .,3....m ....,=1
d
j
(
P S
j P. t! n
d
#
,#
ij,
#
j
(
1 , i P .,3....m ....,;1
:here, d
#
,#
ij,
#
j
*
1 and d
#
,#
ij,
#
j
(
1 is the distane !% #
ij
%r!m #
j
*
and #
j
(
res"eti#ely.
Crtera
Purchasng Cost
Product Ouaty
Fnanca Stabty
Devery
Performance
Budng and Facty
Personne
d
v
(A2,FPIS) d
v
(A3,FPIS) d
v
(A1,FNIS) d
v
(A2,FNIS) d
v
(A3,FNIS)
4.93
5.31
5.42 4.72 5.31 4.60 5.28 5.03
0.32
5.53
4.64
6.30
4.10
2.63 5.79
3.11
4.88 3.76
4.56
6.90
5.08 5.30
4.60
4.88
4.60
7.98
3.67
3.37
3.76
FPIS FNIS
7.08 5.18 4.58 2.75 5.68 6.02
d
v
(A1,FPIS)
5.59
Ta%le '= )istance of /lternatives
Step '=2 T! alulate the l!seness !e%%iient !% eah alternati#e.
9l!seness !e%%iient an be alulated as
99
i
P d
i
(
? ,d
i
(
Y d
i
*
1 , iP., 3....m ....,/1
A1 A2 A3
d

*
32.60 29.88 27.96
d

-
25.00 29.57 28.22
CC
0.434 0.497 0.5023
Ta%le '' $loseness $oefficient
Step ''2 T! rank the alternati#es in dereasin$ !rder !% the l!seness !e%%iient.
Preference 1 A3
Preference 2 A2
Preference 3 A1
Ta%le '2 Priority Order
Results and &indings
The t!!l that hel"s the mana$er is e#aluatin$ and seleti!n su""lier need t! a!mm!date
s!me de$ree !% subjeti#ity. This ann!t be ahie#ed usin$ just numerial sales, but re+uires
lin$uisti e'"ressi!ns. Fu<<y l!$i all!ws the deisi!n makers t! e'"ress their wei$ht a$es in
lin$uisti terms. It hel"s in learin$ !ut the biases that !therwise w!uld ha#e !urred. Fu<<y
membershi" %unti!ns hel"s in !n#ertin$ these lin$uisti terms int! %u<<y numbers. -y
d!in$ the mathematial !"erati!ns and translatin$ them int! s!res, hel"s in rankin$ the
su""liers.
This "a"er is all ab!ut seletin$ su""liers %!r bl!!d ba$ manu%aturin$ industry in India. First
!% all, a "anel !nsistin$ !% e'"erts %r!m the industry !r related t! industry is %!rmed. F!r this
study, a "anel !% C e'"erts %r!m the industry were !nsidered. F!r !n%idential reas!ns, let us
n!w assume them t! be D., D3 and DC.9!nsider, the !m"any has C alternati#es as well Z
A., A3 and AC. In this "a"er, 7 riteria are !nsidered %!r the e#aluati!n. The riteria are Z
Purhasin$ 9!st, Pr!dut Guality, Finanial 6tability, Deli#ery Per%!rmane, -uildin$ and
Faility, and Pers!nnel.
As the %irst ste", the three deisi!n makers e#aluated the im"!rtane !% eah riteri!n and the
ratin$ !% alternati#es by usin$ the lin$uisti #ariables sh!wn in table C and table 5
res"eti#ely. The ratin$ %!r the riteria and the alternati#es are determined ne't ,Table C and
Table 51. These ratin$s are then !n#erted int! trian$ular %u<<y numbers and then a$$re$ate
%u<<y ratin$ is alulated. Ae't, the %u<<y deisi!n matri' is %!rmed and then the n!rmali<ed
%u<<y deisi!n matri'. A%ter the n!rmali<ed %u<<y deisi!n matri' is %!rmed, the wei$hted
%u<<y deisi!n matri' is determined. Al!n$ with the determinati!n !% wei$hted %u<<y
deisi!n matri', the %u<<y "!siti#e ideal s!luti!n ,FPI61 and the %u<<y ne$ati#e ideal s!luti!n
,FAI61 is determined. As the ne't ste" the distane !% eah alternati#e %r!m the FPI6 and the
FAI6 is alulated usin$ the #erte' meth!d ,@+n. = L ;1. Then, the l!seness !e%%iient !%
the three alternati#es !nsidered is alulated ,@+n. /1.
The three alternati#es are arran$ed in the dereasin$ !rder !% the l!seness !e%%iient
AC[A3[A..
The study illustrates the ability !% the %u<<y TDP6I6 t! "r!#ide a rati!nal and sienti%i
a""r!ah t! e#aluate the "er%!rmane !% di%%erent su""liers !% #ari!us raw materials in the
bl!!d ba$ manu%aturin$ industry. The results sh!w the im"!rtane !% inludin$ all the
riteria in "er%!rmane e#aluati!n. :e an als! in%er that initial sh!rt listin$ !% su""liers
based !n !st is n!t a $!!d a""r!ah %!r su""lier seleti!n.
3. $onclusion
The TDP6I6 tehni+ue !% M9DM is a #ery $!!d t!!l %!r measurin$ the "er%!rmane !%
su""liers !% bl!!d ba$ industry ,&ealth are1. 6ine the bl!!d ba$ industry su""ly hain is in
nasent sta$e, the w!rk is ha#in$ $!!d !ntributi!n t! the seleted d!main. T! im"lement the
deisi!n makin$ m!del, the researher needs t! identi%y a $r!u" !% e'"ert deisi!n makers
wh! an rate the im"!rtane !% eah riteria?attributes and a$$re$ate them by the mean
a$$re$ati!n meth!d. The riteria used in the "r!"!sed m!del were based !n the %eedbak
%r!m e'"ert deisi!n makers in the bl!!d ba$ manu%aturin$ en#ir!nment. It is im"erati#e t!
desi$n the m!del in ali$n with the real time a""liati!ns. This w!uld be "!ssible by seletin$
the ri$ht "arameters based !n +ualitati#e deisi!ns. Researher d!es n!t need t! "urhase a
hi$hly s!"histiated t!!l !r s!%tware t! d! the same. The m!del e'"ets the industry
"r!%essi!nals t! h!!se the "arameters and will $uide the "r!%essi!nals t! a""ly the !m"le'
tehni+ue #ia M6(@\9@H that an make the alulati!ns !% ratin$ an easy, less time(
!nsumin$ task and hea". Inte$rati!n !% %u<<y l!$i with TDP6I6, hel"ed in ahie#in$
better result, as it was able t! brin$ in the subjeti#e nature !% human assessment with it. The
su""liers are ranked a!rdin$ t! the dereasin$ #alue !% l!seness !e%%iient. The su""lier
with the hi$hest rankin$ is then seleted. The m!del an als! be used %!r the "r!dut
de#el!"ment "r!jet seleti!ns, manu%aturin$ system seleti!ns and distributi!n hannel
desi$n als!.
5. Li!itations > &uture scope of t"e wor*
The attributes disussed in this researh w!rk are s! s"ei%i t! the auth!r,s1 interati!n with
the "artiular d!main e'"erts a#ailable. -ut in the reality, e#ery !r$ani<ati!n will set its !wn
"arameters %!r the seleti!n !% su""liers. The unertainty situati!ns desribed in the "a"er %!r
manu%aturin$ "r!ess may #ary de"endin$ u"!n industry !"eratin$ en#ir!nments. Further
while e#aluatin$ the riteria and rankin$ the su""liers, the #ariati!ns and !bjeti#e !% the
b!tt!m line in the buyin$ !r$ani<ati!ns* balane sheet ha#e n!t been $i#en the due "ri!rity.
The ab!#e disussi!ns are m!re !n%ined t! Indian manu%aturin$ situati!ns. Generali<ati!n
!% the m!del needs t! be d!ne by takin$ the !ther "arameters "re#alent in the $l!bal
manu%aturin$ !r !untry s"ei%i !nte't. The !nsiderati!n !% researh %indin$s ann!t be
$enerali<ed due t! the !m"le'ity !% the su""lier !"eratin$ en#ir!nment in the "artiular
d!main and m!re ases may be e'"l!red t! #alidate the "r!ess. As a %uture attem"t,
researher an als! use the tra"e<!idal %u<<y sets instead !% the trian$ular !nes and #alidate
the same. The bl!!d ba$ industry an be researhed %urther with the !ther M9DM tehni+ues
in the !ther deisi!n makin$ "r!esses al!n$ its su""ly hains.
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