A Hybrid Fuzzy Analytic Network Process (FANP) and Data Envelopment Analysis (DEA) Approach for Supplier Evaluation and Selection in the Rice Supply Chain

Chia–Nan Wang,Van Thanh Nguyen,Duy Hung Duong,Hanh Tuong Do

doi:10.3390/sym10060221

Abstract

In the market economy, competition is typically due to the difficulty in selecting the most suitable supplier, one that is capable to help a business to develop a profit to the highest value threshold and capable to meet sustainable development features. In addition, this research discusses a wide range of consequences from choosing an effective supplier, including reducing production cost, improving product quality, delivering the product on time, and responding flexibly to customer requirements. Therefore, the activities noted above are able to increase an enterprise’s competitiveness. It can be seen that selecting a supplier is complex in that decision-makers must have an understanding of the qualitative and quantitative features for assessing the symmetrical impact of the criteria to reach the most accurate result. In this research, the multi-criteria group decision-making (MCGDM) approach was proposed to solve supplier selection problems. The authors collected data from 25 potential suppliers, and the four main criteria within contain 15 sub-criteria to define the most effective supplier, which has viewed factors, including financial efficiency guarantee, quality of materials, ability to deliver on time, and the conditioned response to the environment to improve the efficiency of the industry supply chain. Initially, fuzzy analytic network process (ANP) is used to evaluate and rank these criteria, which are able to be utilized to clarify important criteria that directly affect the profitability of the business. Subsequently, data envelopment analysis (DEA) models, including the Charnes Cooper Rhodes model (CCR model), Banker Charnes Cooper model (BCC model), and slacks-based measure model (SBM model), were proposed to rank suppliers. The result of the model has proposed 7/25 suppliers, which have a condition response to the enterprises’ supply requirements.

Highlights

The task of selecting suppliers becomes more important in today’s competitive and global environment when it is impractical or virtually impossible to create high-quality, low-cost, successful products without a vendor
Supplier evaluation and selection have been identified as important issues that could affect the efficiency of a supply chain
The analytic network process (ANP) model is combined with a fuzzy set, to evaluate the supplier selection criteria and define the priorities of each supplier, which are able to be utilized to clarify important criteria that directly affect the profitability of the business

Summary

Introduction

The task of selecting suppliers becomes more important in today’s competitive and global environment when it is impractical or virtually impossible to create high-quality, low-cost, successful products without a vendor. Vendor selection is one of the most important. Expected goal of selecting a vendor is necessary to reduce the risk in buying, making an optimum decision, and establishing a sustainable alliance between buyers and suppliers [2]. Choosing suppliers is a decision-making process because a business expects to obtain a supplier [3]. It requires a powerful analytical approach, via utilizing decision-support tools, which is capable of addressing multiple criteria [4]. The supplier’s price includes many qualitative and qualitative conflicts

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Methods

Results

Discussion

Conclusion