Fuzzy bi-criteria decision making approach for supplier selection and distribution network planning in supply chain management

Abstract

Supply chain management (SCM) is to coordinate and integrate material and information within and across organizations. Supplier selection is evaluated as a critical factor for the firms desiring improved and successful supply chain in the process of product realization that starts from the purchasing of raw or sub-assembly material till the end of delivering the final product. With the scope of this paper, a fuzzy bi-objective optimization model is discussed; who coordinates and minimizes the procurement & distribution cost of Convenience stores company and selects the best supplier. Supplier selection process is carried out on the bases of multi factors therefore it is considered as a multi criteria decision problem. The model presented in the paper is using the analytic network process (ANP), a multi criteria decision making technique for supplier selection. To obtain the best coordination, the model is converted into crisp using triangular fuzzy numbers and fuzzy membership functions and solved using fuzzy goal programming technique.