An integrated supplier selection methodology incorporating QFD and DEA with imprecise data

Abstract

Supplier evaluation and selection is an important group decision making problem that involves not only quantitative criteria but also qualitative factors incorporating vagueness and imprecision. This paper proposes a novel fuzzy multi-criteria group decision making framework for supplier selection integrating quality function deployment (QFD) and data envelopment analysis (DEA). The proposed methodology allows for considering the impacts of inner dependence among supplier assessment criteria through constructing a house of quality (HOQ). The lower and upper bounds of the weights of supplier assessment criteria are identified by adopting fuzzy weighted average (FWA) method that enables the fusion of imprecise and subjective information expressed as linguistic variables. An imprecise DEA methodology is implemented for supplier selection, which employs the weights of supplier assessment criteria computed by FWA utilizing the data from the HOQ and the supplier ratings with respect to supplier assessment criteria. The application of the proposed framework is demonstrated through a case study in a private hospital in Istanbul.