Supplier Selection with Shannon Entropy and Fuzzy TOPSIS in the Context of Supply Chain Risk Management

Supplier selection is the process of finding the right suppliers, at the right price, at the right time, in the right quantities, and with the right quality. The aim of this paper, is supplier selection in the context of supply chain risk management. Thus nine criteria of quality, on time delivery and performance history and six risks in the supply chain including supply risk, demand risk, manufacturing risk, logistics risk, information risk and environmental risk considered for evaluating suppliers. Shannon entropy is used for weighing criteria and fuzzy TOPSIS is applied for ranking suppliers. Findings show that, in the spare parts supplier selection problem, demand risk is the most important factor.