An integrated fuzzy MCDM approach for risk evaluation of new product in a pipe industry

Abstract

New Product Development (NPD) process is recognised as one important competitive advantage for most companies which include high risk and uncertainty. Hence, this study aims at accelerating new product introduction and improving the quality of decision-making in NPD process under risks and uncertain conditions. This paper suggests an integrated framework based on the Fuzzy Analytic Hierarchy Process (AHP) and the Fuzzy Technique for Order Performance by Similarity to Ideal Solution (TOPSIS), to evaluate new products in a fuzzy environment where the vagueness and subjectivity are handled with linguistic values parameterised by triangular fuzzy numbers. The Fuzzy AHP is implemented to calculate weights of the risk criteria, and the Fuzzy TOPSIS method is applied to obtain a final ranking. Finally, the proposed approach is implemented for NPD evaluation of a pipe and fitting industry. The results reveal the supply risks have the highest effect on risk evaluation of new products.