Supplier selection in rank order using fuzzy ahp and fuzzy molp with sensitivity analysis

Abstract

Supply chain management (SCM) plays a great role in any company, a good SCM requires a good selection of all its components. One of the components is the raw material supplier selection that needs to consider both tangible and intangible factors in each supplier. Therefore, we can use fuzzy AHP which uses an intangible approach and fuzzy MOLP which uses a tangible approach. In this paper, we aim to use both methods to get the rank order of the best suppliers from all 5 suppliers in a woodworking company. The result shows that both methods can work together as the rank order from both methods gives the same result. However, sensitivity analysis is done in case both methods give different rank order. Sensitivity analysis shows that change in criteria from 10% to 100% make a variance in fuzzy AHP from 0% to 30% while fuzzy MOLP from 75% to 100%. That means fuzzy AHP is more robust than fuzzy MOLP. We also found that fuzzy AHP is influenced heavily by the expertise of the expert as two experts give different results while fuzzy MOLP is more objective-oriented using real data. These results suggest that each Method has its own characteristics that must be put into mind when we use it.