An integrated approach for selecting a vendor using grey relational analysis

This paper develops a new model for evaluating and selecting the vendor using an integrated approach of Grey Relational Analysis (GRA) along with an Analytical Hierarchy Process (AHP) in a For-ward Supply Chain Model (FSCM). The paper aims to demonstrate how the model can help in solving such decisions in practice. It also examines the structure of the decision hierarchy, whether it can represent vendor selection decisions in reality and whether it covers all key factors affecting vendor selection choices. The effectiveness of the GRA model is illustrated with an Original Equipment Manufacturing (OEM) industry in southern part of India and the results of GRA were validated using the result obtained from AHP. The proposed model helps the industry to effectively select the vendor.