Fuzzy multi-criteria approach to ordering policy ranking in a supply chain

Abstract

In this paper, a new fuzzy multi-criteria mathematical model for the selection of the best among a finite number of ordering policy of raw material in a supply chain is developed. The problem treated is a part of the purchasing plan of a company in an uncertain environment and it is very common in business practice. Optimization criteria selected describe the performance measures of ordering policies and generally their relative importance is different. It is assumed that the values of the optimization criteria are vague and imprecise. They are described by discrete fuzzy numbers and by linguistic expressions. The linguistic expressions are modeled by discrete fuzzy sets. The measures of belief that one ordering policy is better than another are defined by comparing fuzzy numbers. An illustrative example is given.