Simulation based fuzzy tool for supplier selection with order allocation

Abstract

This paper presents a new decision making tool for automatic fuzzy based knowledge acquisition, which clubs supplier selection process with order allocation for dynamic supply chains to cope market variations. More specifically, the developed tool imitates the knowledge acquisition and manipulation in a manner similar to the decision makers who have gathered considerable knowledge and expertise in procurement domain. As per this concept, those decision criteria for supplier selection are considered first through four classes (CLASS I: Performance strategy, CLASS II: Quality of service, CLASS III: Innovation and CLASS IV: Risk), which are qualitatively meaningful. Thereafter, using fuzzy logic, the criteria application is quantitatively evaluated. As a result, the tool generates decision-making knowledge, and thereafter, the developed combination of rules for supplier selection with order allocation can easily be interpreted, adopted and at the same time if necessary, modified by decision makers/managers.