Abstract
Supplier risks have attracted significant attention in the supply chain risk management literature. In this article, we propose a new computational system based on the ‘Fuzzy Extended Analytic Hierarchy Process (FEAHP)’ method for supplier selection while considering the relevant risks. We sought to evaluate the opportunities and limitations of using the FEAHP method in supplier selection and analyzed the support of the system developed through the real case of a Brazilian oil and natural gas company. The computational approach based on FEAHP automates supplier selection by determining a hierarchy of criteria, sub-criteria, and alternatives. First, the criteria and sub-criteria specific to the selection problem were identified by the experts taking the relevant literature as a starting point. Next, the experts performed a pair-wise comparison of the predefined requirements using a linguistic scale. This evaluation was then quantified by calculating the priority weights of criteria, sub-criteria, and alternatives. The best decision alternative is the one with the highest final score. Sensitivity analysis was performed to verify the results of the proposed model. The FEAHP computer approach automated the supplier selection process in a rational, flexible, and agile way, as perceived by the focal company. From this, we hypothesized that using this system can provide helpful insights in choosing the best suppliers in an environment of risk and uncertainty, thereby maximizing supply chain performance.
Highlights
The supplier selection process is a vital aspect of the supply chain, as it encompasses several risks inherent to businesses
Based on the literature review presented we identified some important observations on the problem of supplier selection considering risks: a. the risk types and risk factors prominent in the literature refer mainly to aspects of supplier operational efficiency; b. the integrated Fuzzy Analytic Hierarchy Process (AHP) approach helps to develop the capabilities of traditional AHP and Fuzzy methods, overcoming some of their individual weaknesses; c. there is limited literature on the use of Fuzzy AHP
The computational system for supplier selection considering risks proposed in this paper is based on the ‘Fuzzy Extended Analytic Hierarchy Process’ (FEAHP) method by
Summary
The supplier selection process is a vital aspect of the supply chain, as it encompasses several risks inherent to businesses. We discussed the use of an integrated multi-criteria decision-making approach for solving an important problem in today’s supply chains, second, we proposed a new computational system that supports supplier selection in a rational, flexible, and agile way, and third, we applied the computational tool developed in a real case of supplier selection while considering risks of a large oil company, which allowed important empirical analyses for the area of supply chain, logistics, and operations management. Besides this introduction, this paper has five more sections.
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
