A game model for selection of purchasing bids in consideration of fuzzy values

Abstract

A number of efficiency-based vendor selection and negotiation models have been developed to deal with multiple attributes including price, quality and delivery performance which is treated as important bid attributes. But some alternative vendor's preferences of attributes are difficult of quantitative analysis, such as trust, reliability, and courtesy of the vendor, which are considered to be crucial issues of recent reaches in vendor evaluation. This paper proposes a buyer-seller game model that has distinct advantages over existing methods for bid selection and negotiation, the fuzzy indexes are used to evaluate those attributes which are difficult of quantitative analysis, we propose a new method that expands Talluri (2002) and Joe Zhu (2004)'s method and allows which the elements composing problems are given by fuzzy numerical values, An important outcome of assessing relative efficiencies within a group of decision making units (DMUs) in fuzzy data envelopment analysis is a set of virtual multipliers or weights accorded to each (input or output) factor taken into account. In this paper, by assessing upper bounds on factor weights and compacting the resulted intervals, a CSW is determined. Since resulted efficiencies by the proposed CSW are fuzzy numbers rather than crisp values, it is more informative for decision maker.