Supplier Performance Evaluation in Supply Chain Management Using Fuzzy TOPSIS Based on Vertex Method

Abstract

Supplier selection is a critical yet complex process in the competitive automotive industry, often hampered by subjective judgment and uncertainty. This study proposes a hybrid fuzzy multi-criteria decision-making (MCDM) framework integrating fuzzy AHP and fuzzy TOPSIS to enhance selection reliability. Within this framework, fuzzy AHP determines the weights of criteria: profitability, relationship closeness, technological capability, conformance quality, and conflict resolution. Fuzzy TOPSIS, utilizing the vertex method for precise distance measurement, is then applied to rank alternatives. A case study of three Malaysian automotive suppliers demonstrates the framework’s effectiveness. Results and comparative analyses confirm that this integrated approach provides a robust, stable, and flexible decision-support tool for managing imprecise information in industrial procurement.