Project Report Final Version
Project Report Final Version
By:
▪ NAJI Doha
▪ EZ-ZERRIFI AMRANI Malak
Supervised by:
A special thanks to Ms. EZZINE Latifa, for her administrative support and facilitation, which
have contributed to the smooth progression of our project.
We would also like to extend our appreciation to our dedicated industrial supervisor, Ms.
LEBHAR Ikram, whose practical wisdom, industry knowledge, and mentorship have enriched
our project experience. Her commitment to excellence has been a driving force behind our
endeavors.
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List of figures
Figure 1: Rating scale. ................................................................................................................................. 14
Figure 2: The proposed methodology .................................................................................................. 19
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List of tables
Table 1:Random Index, with n the number of alternatives………………………………………….14
Table 2: QQOQCP method. ........................................................................................................................ 15
Table 3: Decision matrix ............................................................................................................................ 20
Table 4: Normalized matrix ...................................................................................................................... 20
Table 5: Weights for every criterion ..................................................................................................... 20
Table 6: Weighted normalized decision matrix ................................................................................ 21
Table 7: Value of PIS and NIS ................................................................................................................... 21
Table 8: The separation measures from the PIS and the NIS ...................................................... 21
Table 9: The relative closeness to the ideal solution ...................................................................... 21
Table 10: Final ranking using TOPSIS .................................................................................................. 22
Table 11: Decision matrix ......................................................................................................................... 22
Table 12: Values of f* and f-..................................................................................................................... 22
Table 13: Values of Rj and Sj .................................................................................................................... 22
Table 14: Values of Qj ................................................................................................................................. 23
Table 15: Final ranking using VIKOR .................................................................................................... 23
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List of abbreviations
AHP: Analytic Hierarchy Process
AI: Artificial Intelligence
BWM: Best Worst Method
COPRAS: COmplex PRoportional Assessment
DM: Decision Making
DSC: Digital Supply Chain
IoT: Internet of Things
MAH: Maximize Agreement Heuristic
MCDM: Multi Criteria Decision Making
MULTIMOORA: Multi Objective Optimization based on Ratio Analysis plus the Full
Multiplicative Form
NIS: Negative Ideal Solution
PF: Proximity Factor
PIS: Positive Ideal Solution
SC: Supply Chain
TFN: Triangular Fuzzy Numbers
TOPSIS: Technique for Order Preference by Similarity to Ideal Solution
VIKOR: VlseKriterijumska Optimizacija I Kompromisno Resenje
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Table of contents
Introduction....................................................................................................................................................... 7
I. Introduction ...................................................................................................................................... 10
5. MULTIMOORA method...................................................................................................... 10
I. Introduction ...................................................................................................................................... 18
Bibliography ................................................................................................................................................... 25
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Introduction
A supply chain is a network of organizations, individuals, activities, resources, and
information involved in the creation and distribution of goods or services, from the source
of raw materials to the end customer. The supplier provides raw materials to the
manufacturer, the manufacturer ships finished products to the distributors, the
distributors pass on selected amounts of the products to retailers who ultimately sell the
products to consumers.
Whilst every stage is considered important and crucial in the process of production,
procurement is considered as a key element. This stage involves sourcing and purchasing
raw materials or components from suppliers. Evidently, manufacturers are required to
select a supplier. This choice has repercussions across the entire value network,
influencing product quality, operational efficiency, ultimately, the success of an
organization in the competitive market and most importantly client’s satisfaction.
Nowadays, in the dynamic landscape of Industry 4.0, the traditional contours of supply
chain management are undergoing a profound metamorphosis. Organizations are striving
to adapt to the demands of this era, it has become imperative to revisit and redefine the
very essence of the supply chain that fuels industrial ecosystems. With all the last
repercussions, the re-evaluation of methods for selecting suppliers has become essential.
Amidst all these changes, a novel and forward-looking approach in supplier selection
surfaced by employing a combination of MCDM techniques and machine learning. In fact,
combining the analytical rigor of MCDM with the computational capabilities of AI
enhances the precision and efficiency of their decision-making processes. MCDM offers a
structured framework for evaluating suppliers based on multiple criteria, whilst AI
techniques, such as machine learning algorithms, contribute predictive analytics and
data-driven insights. This synergy enables organizations to not only assess supplier
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performance across diverse parameters but also to anticipate future trends and potential
risks.
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Chapter one: Literature Review and project context
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I. Introduction
In this section, we concentrate on two vital components of our project. Initially, we
undertake extensive research, exploring key domains like machine learning, deep
learning, neural networks, IoT, and various Multi-Criteria Decision-Making (MCDM)
methods. This research phase is crucial for establishing a comprehensive theoretical
foundation essential for our project's evolution. Additionally, we delve into framing our
project using systematic methods, ensuring a clear roadmap for its development.
3. MCDM method
Multi Criteria Decision Making refers to a systematic and structured approach used to
resolve complex problems involving conflicting criteria. It offers decision-makers a formal
methodology to rank alternatives and make informed choices, even under highly intricate
conditions.
4. BWM method
Best Worst Method is a valuable Multi-Criteria Decision-Making (MCDM) technique that
facilitates the assignment of importance weights to evaluation criteria by making pairwise
comparisons between the best alternative and all others, as well as between the worst
alternative and all others.
5. MULTIMOORA method
MULTIMOORA is a method used to solve a wide range of management-related
optimization problems characterized by the presence of conflicting objectives. It consists
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of three main phases with MOORA being one of them. It includes three main phases: a
ratio system approach MOORA, a reference point approach, and a full multiplicative form
approach.
6. COPRAS method
COPRAS Method is a valuable Multi-Criteria Decision-Making (MCDM) technique that
facilitates the assignment of importance weights to evaluation criteria by making pairwise
comparisons between the best alternative and all others, as well as between the worst
alternative and all others.
7. MAH method
MAH is a method used to aggregate in a final consensus ranking. Its techniques are used
to evaluate and make decisions when faced with multiple conflicting criteria.
8. TOPSIS method
TOPSIS is a method used for ranking alternatives and provides a convenient approach to
untangle MCDM. It is built on fundamental concepts of positive ideal solutions (PIS) and
negative (NIS) and it requires the best alternative to be the one situated at both the
smallest distance from the PIS and the farthest distance from the NIS. [2]
𝑥𝑖𝑗
𝑟𝑖𝑗 =
√∑𝑛𝑖=1 𝑥𝑖𝑗 2
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c) Calculate the weighted normalized decision matrix
We assign weights to each criterion 𝑤𝑗 and then we calculate the weighted normalized
values in the following way:
𝑣𝑖𝑗 = 𝑤𝑗 × 𝑟𝑖𝑗
N.B: ∑ 𝑤𝑗 = 1 !!
e) Calculate the separation measures from the PIS and the NIS
The separation of each alternative from the PIS is given as:
If the alternatives representing the farthest distance from the NIS and closest to the PIS
were identical, we would have concluded our calculation at this stage, but since that is not
the case, we should add an additional step.
∗
𝐸−
𝑆 = −
𝐸 + 𝐸+
9. VIKOR method
The VIKOR is a multi-criteria decision-making (MCDM) technique used to select the best
alternative from a set of options. It is particularly useful when there are conflicting criteria
and a need to find a compromise solution. [3]
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Here are the steps involved in the VIKOR method:
Let M ([𝑥𝑖𝑗 ]) be a Decision matrix, I the number of criteria and j the number of alternatives.
e) Propose a solution A for which Q is minimum and verifies the two conditions 𝑪𝟏 and 𝑪𝟐
• 𝐶1 : Acceptability condition
𝑄(𝐵) − 𝑄(𝐴) ≥ 𝐷𝑄
1
where B the second best alternative and 𝐷𝑄 = | 1−𝑗 | and j being the number
of alternatives.
• 𝐶2 : Stability condition
A should be the best solution based on the S and R rankings
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a) Define the Decision Hierarchy:
Develop a hierarchical structure with a goal at the top level, the attributes/criteria at the
second level, and the alternatives at the third level.
Pair-wise comparison matrix is created with the help of a scale of relative importance.
𝑎𝑖1 𝑎𝑖2
; ;… with aij is the value of each cell.
∑𝑎𝑖1 ∑𝑎𝑖2
-Calculate the criteria weight by averaging all the elements in the row.
𝑎1𝑗 𝑎2𝑗
; ;… with j is the number of alternatives.
𝑗 𝑗
-Then we calculate the weighted sum value by adding all the values in each row.
WSV1=∑a1j…
-Next, we calculate the ratio by dividing the weighted sum value by the criteria weight.
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𝑊𝑆𝑉1
𝜆1𝑗 = …
𝑊1𝑗
∑𝜆1𝑗
𝜆𝑚𝑎𝑥 =
𝑗
We should make sure that CR<0.10 in order to verify the consistency of the matrix.
n 1 2 3 4 5 6 7 8 9 10
RI 0.00 0.00 0.58 0.90 1.12 1.24 1.32 1.41 1.45 1.49
g) Make a Decision:
Make a decision based on the aggregated weights, and select the alternative that has the
highest overall score.
Who Decision-makers
2. Long-term Objective
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The long-term goal of this project is the integration of 4.0 algorithms in MCDM methods.
This helps in picking the best suppliers, lowering risks, encouraging new ideas, and
ultimately making the supply chain stronger and more successful over time.
IV. Conclusion
In summary, this chapter lays the groundwork for our project. The extensive bibliographic
research deepened our understanding of key concepts, and the QQOCQP method
systematically framed our project. We explored mathematical models and steps of
TOPSIS, VIKOR, and AHP methods. The long-term goal is a strategic and adaptive
approach to optimize supplier selections, mitigate risks, and foster innovation in the
organization's supply chain.
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Chapter two: Article analysis and real case study
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I. Introduction
In this chapter, we will be analyzing an article by the name: « An integrated and
comprehensive fuzzy multicriteria model for supplier selection in digital supply chains »,
published in 2021. In addition, we will be evaluating six suppliers using two MCDM
methods TOPSIS and VIKOR. The chosen supplier will be providing us with a management
platform.
It ranks the alternatives based on 12 criteria well chosen by a specialized team, the
criteria are as follows: Real-Time visibility, adopting advanced analytics, technical capability,
continuous collaboration, alignment of the supplier, agility, and flexibility, lack of tools and
technologies, lack of planning, lack of information sharing, lack of knowledge, lack of digital
collaboration, lack of technology integration.
➢ Phase 1: Several selection criteria are reviewed, and the key ones for supplier
selection within a DSC environment are identified.
➢ Phase 2: Experts’ opinions are collected, and the importance weights of the
criteria are calculated by fuzzy BWM.
➢ Phase 3,4,5: Third, fuzzy MULTIMOORA, fuzzy COPRAS, and fuzzy TOPSIS are
used in three distinct and parallel phases (Phase 3, Phase 4, and Phase 5,
respectively) to rank the suppliers.
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➢ Phase 6: The rankings obtained are integrated with MAH to achieve a consensus
ranking. [1]
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III. Real case study
1. TOPSIS Method
1.1. Construct the decision matrix
On a scale of 1 to 5 we assign a grade to every supplier.
C1 C2 C3 C4 C5 C6
O1 3 4 3 3 1 4
K1 2 0 1 2 1 2
S1 2 2 2 2 1 2
Z1 5 5 1 4 4 5
J1 3 4 3 3 1 4
SP1 4 5 5 5 3 5
Rij C1 C2 C3 C4 C5 C6
O1 0,366508 0,431331 0,428571 0,366508 0,185695 0,421637
K1 0,244339 0 0,142857 0,244339 0,185695 0,210819
S1 0,244339 0,215666 0,285714 0,244339 0,185695 0,210819
Z1 0,610847 0,539164 0,142857 0,488678 0,742781 0,527046
J1 0,366508 0,431331 0,428571 0,366508 0,185695 0,421637
SP1 0,488678 0,539164 0,714286 0,610847 0,557086 0,527046
C1 C2 C3 C4 C5 C6
Weight 0.3 0.15 0.15 0.2 0.1 0.1
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Table 6: Weighted normalized decision matrix
Vij C1 C2 C3 C4 C5 C6
O1 0,109952 0,0647 0,064286 0,073302 0,01857 0,042164
K1 0,073302 0 0,021429 0,048868 0,01857 0,021082
S1 0,073302 0,03235 0,042857 0,048868 0,01857 0,021082
Z1 0,183254 0,080875 0,021429 0,097736 0,074278 0,052705
J1 0,109952 0,0647 0,064286 0,073302 0,01857 0,042164
SP1 0,146603 0,080875 0,107143 0,122169 0,055709 0,052705
1.5. Calculate the separation measures from the PIS and the NIS
Table 8: The separation measures from the PIS and the NIS
Vij E+ E-
O1 0,1062218 0,1010284
K1 0,1734377 0,0733574
S1 0,1505998 0,0830
Z1 0,0986661 0,1517
J1 0,1062218 0,1010
SP1 0,0840312 0,1464
The closest alternative to the PIS is SP1 and the farthest alternative from the NIS is Z1.
Vij PF
O1 0,4874708
K1 0,2972401
S1 0,3552753
Z1 0,6059514
J1 0,4874708
SP1 0,6353464
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The closest alternative to the ideal solution would be once again SP1, which confirms our
previous results.
Vij Ranking
O1 3
K1 5
S1 4
Z1 2
J1 3
SP1 1
2. VIKOR Method:
2.1. Construct the decision matrix
Table 11: Decision matrix
Alternatives C1 C2 C3 C4 C5 C6
O1 3 4 3 3 1 4
K1 2 0 1 2 1 2
S1 2 2 2 2 1 2
Z1 5 5 1 4 4 5
J1 3 4 3 3 1 4
SP1 4 5 5 5 3 5
f* 5 5 5 5 4 5
f- 2 0 1 2 1 2
Alternatives Sj Rj
O1 0.605 0.200
K1 1.100 0.300
S1 1.003 0.300
Z1 0.283 0.150
J1 0.605 0.200
SP1 0.133 0.100
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2.4. Calculate the values 𝑆 ∗ , 𝑆 − et 𝑅∗ , 𝑅−
𝑆 ∗ = 0.133, 𝑆 − = 1.100, 𝑅 ∗ = 0.100, 𝑅− = 0.300
Alternatives Qj
O1 0.4970
K1 1.0000
S1 0.9748
Z1 0.2263
J1 0.4970
SP1 0.000
SP1 is the alternative with the lowest value of Qj, hence it is the optimum choice amongst
the available alternatives.
Alternatives Ranking
O1 3
K1 5
S1 4
Z1 2
J1 3
SP1 1
Verifying acceptability conditions:
1
𝑄(𝐵) − 𝑄(𝐴) = 0.226 > | | = 0.2
1−6
IV. Conclusion
In this chapter, we conducted an analysis of an article centered around a novel proposed
model that integrates various MCDM methods. Additionally, evaluated six alternatives
using two methods TOPSIS and VIKOR based on six criteria. We have obtained the same
raking using both techniques, with SP1 being ranked first, Z1 being second, O1 and J1
being third, S1 being fourth and lastly K1 being ranked fifth.
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General Conclusion
In conclusion, the initial phase of this project has dedicated itself to a comprehensive
exploration of MCDM techniques and their application in the intricate domain of supplier
selection. Our exhaustive analysis not only delved into the theoretical underpinnings but
also culminated in the development of a robust methodology for supplier selection
employing techniques such as TOPSIS and VIKOR. This methodological foundation not
only enhances the precision of decision-making processes but also establishes a solid
framework for evaluating suppliers across multiple criteria. Furthermore, our findings
will be opening new avenues for future exploration, particularly in the integration of AI
algorithms into the decision-making process. The integration of AI holds the promise of
elevating the sophistication of supplier selection, presenting an exciting prospect for
further research and implementation in the subsequent phases of this project.
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Bibliography
[1] Madjid Tavana, Akram Shaabani, Debora Di Caprii, and Maghsoud Amiri. (2021) An
integrated and comprehensive fuzzy multicriteria model for supplier selection in digital
supply chains, Sustainable Operations and Computers 2,149–169.
[2] Abdel YEZZA. (2017) La methode TOPSIS explique pas a pas, une variante propose.
Ph.D. thesis. Available on: Step by Step Topsis.pdf
[3] K. Selvakumari, and M. Ajitha Priyadharshini. (2017) Vikor Method for Decision
Making Problem Using Octagonal Neutrosophic Soft Matrix, International Journal of Latest
Engineering Research and Applications, 41-45.
https://fs.unm.edu/neut/VikorMethodForDecision.pdf
[4] Ahmed Dhouibi, Wahiba Bali Kalboussi, and Makrem Ben Jeddou. (2015) Application
de la methode AHP pour le choix multicritere des fournisseurs, Revue Marocaine de
recherche en management et marketing, 60-71.
https://revues.imist.ma/index.php/REMAREM/article/download/3772/4433.pdf
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