Supplier Evaluation and Selection Considering Competitive Capabilities using MADM Technique

In recent years, supplier selection problem has become one of the most important issues for establishing an effective supply chain system. Many quantitative and qualitative factors such as quality, price, and flexibility and delivery performance must be considered to determine suitable supplier. Then, supplier selection is a multi-attribute decision making (MADM) problem.  Several models and techniques have been developed to deal with this problem. In this study, FRS application is described in supplieir evaluation and selection problem. The Shannon entropy method has been used to calculate the each of indicators weights. The advantage of this method is that the positive or negative indicators, does not affect the calculation method.This is a descriptive-survey study which is done in large automotive components in Semnan. The results indicate that Parmida, Samfar, Gharb Steel and Shishe Imeni Kabir companies are at the first to fourth, respectively in the ranking based on competitive capabilities.