A Fuzzy Multi-criteria Decision Making Approach for Supplier Selection Under Fuzzy Environment

Abstract

Supplier selection is crucial and multi-criteria decision making problem in supply chain. Nowadays in competitive business environment, supplier selection is a critical task for purchasing department in every organization. Appropriate supplier helps manufacturer to reduce cost, consistent quality product, and enhance competitiveness in market. In order to select potential supplier, it is essential to tradeoff between tangible and intangible factors. Uncertainty and vagueness of decision makers opinion is an important characteristic of this problem. Fuzzy analytical hierarchical process (AHP) and extent analysis method is used to choose appropriate supplier under fuzzy environment. The application procedure of FAHP and extent analysis method is elaborated through numerical example.