Applying fuzzy and grey theory to multi-criteria decision-making model for supplier selection: A corporate social responsibility perspective

Abstract

This research combined fuzzy and grey theories to develop a multi-criteria decision-making model to deal with problems regarding supplier selection. Prior research on supplier selection mainly focused on suppliers’ capabilities from the perspective of manufacturers; however, with the increasing attention paid to corporate social responsibility, in addition to capabilities, supplier’s corporate social responsibility should be taken into consideration for selection. In the process of supplier selection, the fuzzy theory was adopted to deal with assessment items which involve subjectivity and uncertainty. Moreover, manufacturers often encountered a common difficulty of information insufficiency, so they used only a limited set of criteria to conduct assessment; to tackle information shortage, we adopted grey relational analysis of the grey theory. As a result, this research utilized a combination of fuzzy and grey theories to develop an easier, fairer and more practical method for companies to decide on appropriate suppliers. This paper provided a detailed description of selection procedures and demonstrated it with a simulated case. Key words: Supplier, selection, fuzzy theory, grey theory, multi-criteria decision-making (MCDM).