Abstract
Supplier selection problem has a major regard in terms of the performance of supply chain of an organization. Several various approaches were proposed, including the analytic hierarchy process, fuzzy analytic hierarchy process, and fuzzy technique for order of preference by similarity to ideal solution (TOPSIS). However, no comparative researches of these three approaches related to the supplier selection problem have been carried out. Therefore, this article proposes a methodology to evaluate the selected approaches. The evaluation was conducted based on the following factors: agility during the decision process, computational complexity, number of criteria and alternative suppliers, and adequacy in supporting a group decision. The methodology is implemented in X company. The results show that each approach is convenient to the supplier evaluation and selection problem, particularly toward the support of group decision-making and uncertainty modeling. In terms of computational complexity, analytic hierarchy process performs better than fuzzy TOPSIS and fuzzy analytic hierarchy process. Moreover, the fuzzy TOPSIS approach is better suited to the supplier evaluation and selection in terms of agility during the decision process, the number of criteria and alternative suppliers, and the adequacy in supporting a group decision.
Highlights
Chain management (SCM) is a methodology for incorporating the agent elements of an association in order to make a general arrangement for the association, while fulfilling the administration approach and maintaining the greatest conceivable reduction in cost based on an unreliable understanding of the conditions of a rival association
An multi-criteria decision-making (MCDM) tool is illustrated to support the decision-makers in evaluating and selecting the best supplier among the list of competing suppliers. It contains four major elements: [1] the criteria used in the evaluation of all competing suppliers; [2] a list of competing suppliers and their impact on each criterion, the data of which are gathered from supplier selection experts in the purchasing department as well as through related studies; [3] the MCDM tool utilizing the three approaches, that is, analytic hierarchy process (AHP), fuzzy AHP, and fuzzy TOPSIS, to assist the decision-maker in comparing and evaluating the various supplier alternatives based on the gathered data regarding the company criteria and supplier benefits; and [4] a comparison between the three approaches to select the best one for the supplier evaluation and selection problem
An MCDM tool was developed to select the best supplier at X company
Summary
Chain management (SCM) is a methodology for incorporating the agent elements of an association in order to make a general arrangement for the association, while fulfilling the administration approach and maintaining the greatest conceivable reduction in cost based on an unreliable understanding of the conditions of a rival association. The committee consists of employees from the purchasing department, research and development section, and end users of the selected commodities The aim of this process is to reward the best supplier and encourage the other suppliers to enhance their performance in order to be eligible to supply the company with the commodity in the future. The criteria used to evaluate the best suppliers are those utilized by Kahraman et al. with certain modifications, as agreed upon by the purchasing department, the decision-maker, in the company. These criteria are divided into supplier performance, product performance, service performance, and cost criteria.
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