Decision Making Support Systems with VIKOR Method For Supply Chain Management Problems

In this work scientific and simple calculation method for manufacturer?s decision-makers to choose the most ideal supplier in the Supply Chain Management problem has been provided. As a fundamental decision-making for manufacturers, the quality of supplier performance not only affects the downstream business, but also determines the success of the whole supply chain. Therefore, choosing suitable suppliers in the supply chain becomes a key strategic step; it directly impacts the benefit for manufacturers. This paper deals with the supplier selection problem based on VIKOR algorithm (Vlse Kriterijumska Optimizacija Kompromisno Resenje) which is a compromise multiple criteria decision making approach with entropy method which gives the weights to indicators. The VIKOR algorithm deals with the conflicts between indicators based on certain way to sort the scheme and choose the best scheme. A numerical example is proposed to illustrate the effectiveness of this algorithm. However, Sensitivity Analysis for the weighting vectors is performed to make the result of evaluations more objective and accurate