Using grey-fuzzy programming approach to solve multi-objective supplier selection problem

Abstract

An increasing need to improve efficiency have been enforcing buyer companies to give more attention on their supplier. As one critical task within the company's supply chain management system, a proper supplier selection mechanism not only results in a more reliable and long term supplier-buyer partnership, but also provides opportunities to reduce various costs and realizes stable production. However, one of the main characteristic of supplier selection problem is that a fuzziness often adheres in the process of selection. In this paper, multi-objective-objective supplier selection problem is studied, and a grey fuzzy programming approach is developed to tackle uncertainty in decision maker's aspirations for fuzzy objectives, and in membership parameters of fuzzy objectives simultenously. In the formulated problem, uncertainty in the membership parameters is treated as interval grey numbers. A numerical example demonstrates our approach in providing a range of compromise solutions which impart more flexibility in supplier selection decisions.