Global Supplier Selection Using Fuzzy QFD, ANP, and TOPSIS Methods

Abstract

Supplier selection plays an important role in establishing an effective supply chain for any firm. In supplier selection, decision-makers are faced with the many criteria in supplier selection. This paper proposes an integrated multicriteria decision-making approach of Fuzzy QFD, ANP, and TOPSIS to select global suppliers. Fuzzy QFD and ANP methods are used to weight the criteria by considering the difficulty in obtaining information to evaluate the suppliers on each criterion. The criteria of global suppliers are obtained through literature reviews and divided into two categories: requirement and criteria are then selected and assessed by eight experts from departments purchasing some cable companies in Indonesia. Some of the criteria for supplier selection in this paper are very important in a global context which is generally ignored in local supplier selection such as geographical locations and money exchange rate. The proposed method classifies the criteria into four groups (priority, critical, complementary and costly). The criteria within the priority, critical and complementary groups are used to select the suppliers using TOPSIS. Based on the results with the TOPSIS method, C supplier is the best supplier because has the biggest relative value compared to other suppliers.