A grey-based decision-making approach to the supplier selection problem in a steelmaking company

Abstract

Purpose The purpose of this paper is to propose a supplier selection method using grey system theory for a steelmaking company in Libya. Design/methodology/approach In order to tackle incompleteness and imprecision of human’s judgments, grey numbers were used. This work uses a grey-based approach to represent decision makers’ comparison judgments and extent analysis method to select the best supplier. Therefore, an example of a selection problem of a steelmaking company in Libya was used to illustrate the proposed approach. Findings Supplier selection in a supply chain is a critical strategic decision for company’s success and has attracted much attention of both academic scholars and decision makers. The authors have found that the Grey model can play an important role in improving supplier selection strategy, especially when it is in a situation where complex sustainability environments (i.e. Libya) exist. Originality/value No literature has been found till date for selection of supplier using grey system theory in a steelmaking company in Libya. An attempt in this regard could enhance a decision-making technique for selecting the best suppliers for the selected case company.