Advertisement

Selecting the best supplier at a steel-producing company under fuzzy environment

  • Süleyman ÇakırEmail author
ORIGINAL ARTICLE

Abstract

Supplier selection is a crucial multi-criteria decision-making (MCDM) problem which requires a tradeoff between multiple criteria denoting vagueness and imprecision with the involvement of a group of experts. Fuzzy MCDM methods allow for modeling the decision processes involving imprecise and subjective information expressed as linguistic variables or fuzzy numbers by decision-makers. In this paper, considering information fusion between criteria and linguistic terms, a robust supplier selection algorithm based on the hybrid use of a modified fuzzy Analytic Hierarchical Process (FAHP) and generalized Choquet fuzzy integral (GCFI) methods is proposed. The FAHP is employed in order to obtain importance weights of the evaluation criteria and then the GCFI is used to achieve the overall performance values of supplier alternatives. The suggested methodology has been conducted in a real case application for supplier selection problem in a steel-producing company operating in Turkey. We also showed the robustness of the devised methodology through a sensitivity analysis and compared the obtained results with other MCDM methods. Consequently, it is concluded that the proposed integrated approach can effectively handle supplier selection and other MCDM problems especially when there are interdependent sub-criteria in a complex hierarchy of evaluation criteria.

Keywords

Supplier selection Fuzzy AHP Generalized choquet fuzzy integral 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Yu C, Wong TN (2015) An agent-based negotiation model for supplier selection of multiple products with synergy effect. Expert Syst Appl 42:223–237CrossRefGoogle Scholar
  2. 2.
    Pang B, Bai S (2013) An integrated fuzzy synthetic evaluation approach for supplier selection based on analytic network process. J Intell Manuf 24:163–74CrossRefGoogle Scholar
  3. 3.
    Chen CT, Lin CT, Huang SF (2006) A fuzzy approach for supplier evaluation and selection in supply chain management. Int J Prod Econ 102:289–301CrossRefGoogle Scholar
  4. 4.
    Wu C, Barnes D (2011) A literature review of decision-making models and approaches for partner selection in agile supply chains. J Purch Supply Manag 17:256–274CrossRefGoogle Scholar
  5. 5.
    Bhattacharya A, Geraghty J, Young P (2010) Supplier selection paradigm: an integrated hierarchical QFD methodology under multiple-criteria environment. Appl Soft Comput 10:1013–1027CrossRefGoogle Scholar
  6. 6.
    Zadeh LA (1965) Fuzzy sets. Inf Control 8:338–353MathSciNetCrossRefzbMATHGoogle Scholar
  7. 7.
    Junior FRL, Osiro L, Carpinetti LCR (2014) A comparison between fuzzy AHP and fuzzy TOPSIS methods to supplier selection. Appl Soft Comput 21:194–209CrossRefGoogle Scholar
  8. 8.
    Aydın S, Kahraman C (2011) A modified fuzzy analytic hierarchy process based multicriteria decision-making methodology for assessing e-commerce website quality: a case study in Turkey Proceedings of the World Congress on Engineering WCE 2011 London UKGoogle Scholar
  9. 9.
    Tsai HH, Lu IY (2006) The evaluation of service quality using generalized Choquet integral. Inf Sci 176:640–663CrossRefzbMATHGoogle Scholar
  10. 10.
    Soukup ER (1987) Supplier selection strategies Journal of Purchasing and Materials. Management 23:7–12Google Scholar
  11. 11.
    Willis TH, Huston CR, Pohlkamp F (1993) Evaluation measures of just-in-time supplier performance. Prod Invent Manag J 2:1–5Google Scholar
  12. 12.
    Chai J, Liu J, Ngai E (2013) Application of decision-making techniques in supplier selection: a systematic review of literature. Expert Syst Appl 40:3872–3885CrossRefGoogle Scholar
  13. 13.
    Saaty TL (1996) Decision makings with dependence and feedback: the analytic network process PA: RWS Publications PittsburghGoogle Scholar
  14. 14.
    Liou JH, Chuang YC, Tzeng GH (2014) A fuzzy integral-based model for supplier evaluation and improvement. Inf Sci 266:199–217MathSciNetCrossRefGoogle Scholar
  15. 15.
    Laarhoven PJM, Pedrycz W (1983) A fuzzy extension of Saaty’s priority theory. Fuzzy Sets Syst 11:199–227MathSciNetCrossRefzbMATHGoogle Scholar
  16. 16.
    Calabrese A, Costa R, Menichini T (2013) Using fuzzy AHP to manage intellectual capital assets: an application to the ICT service industry. Expert Syst Appl 40:3747–3755CrossRefGoogle Scholar
  17. 17.
    Buckley JJ (1985) Fuzzy hierarchical analysis. Fuzzy Sets Syst 17:233–247MathSciNetCrossRefzbMATHGoogle Scholar
  18. 18.
    Chang DY (1996) Applications of the extent analysis method on fuzzy AHP. Eur J Oper Res 95:649–655CrossRefzbMATHGoogle Scholar
  19. 19.
    Kahraman C, Cebeci U, Ruan D (2004) Multi-attribute comparison of catering service companies using fuzzy AHP: the case of Turkey. Int J Prod Econ 87:171–184CrossRefGoogle Scholar
  20. 20.
    Herrera-Viedma E, Herrera F, Chiclana F, Luque M (2004) Some issues on consistency of fuzzy preference relations. Eur J Oper Res 154:98–109MathSciNetCrossRefzbMATHGoogle Scholar
  21. 21.
    Zeng J, An M, Smith NJ (2007) Application of a fuzzy based decision-making methodology to construction project risk assessment. Int J Proj Manag 25:589–600CrossRefGoogle Scholar
  22. 22.
    Chan FTS, Kumar N, Tiwari MK, Lau HCW, Choy KL (2008) Global supplier selection: a fuzzy-AHP approach. Int J Prod Res 46:3825–3857CrossRefzbMATHGoogle Scholar
  23. 23.
    Kilincci O, Önal SA (2011) Fuzzy-AHP approach for supplier selection in a washing machine company. Expert Syst Appl 38:9656–9664CrossRefGoogle Scholar
  24. 24.
    Zeydan M, Colpan C, Cobanoğlu C (2011) A combined methodology for supplier selection and performance evaluation. Expert Syst Appl 38:2741–2751CrossRefGoogle Scholar
  25. 25.
    Kar AK (2014) Revisiting the supplier selection problem: an integrated approach for group decision support. Expert Syst Appl 41:2762–2771CrossRefGoogle Scholar
  26. 26.
    Lin Y, Lin C, Yu H, Tzeng G (2010) A novel hybrid MCDM approach for outsourcing vendor selection: a case study for a semiconductor company in Taiwan. Expert Syst Appl 37:4796–4804CrossRefGoogle Scholar
  27. 27.
    Vinodh S, Ramiya RA, Gautham RG (2011) Application of fuzzy analytic network process for supplier selection in a manufacturing organization. Expert Syst Appl 38:272–280CrossRefGoogle Scholar
  28. 28.
    Montazer G, A Saremi HQ, Ramezani M (2009) Design a new mixed expert decision aiding system using fuzzy ELECTRE III method for vendor selection. Expert Syst Appl 36:10837–10847CrossRefGoogle Scholar
  29. 29.
    Sevkli M (2010) An application of the fuzzy ELECTRE method for supplier selection. Int J Prod Res 48:3393–3405CrossRefzbMATHGoogle Scholar
  30. 30.
    Chen T, Wang H, Lu Y (2011) A multicriteria group decision-making approach based on interval-valued intuitionistic fuzzy sets: A comparative perspective. Expert Syst Appl 38:7647–7658CrossRefGoogle Scholar
  31. 31.
    Chai JY, Liu JNK, Xu ZS (2012) A new rule-based SIR approach to supplier selection under intuitionistic fuzzy environments International. J Uncertain Fuzziness Knowl-based Syst 20:451–471CrossRefzbMATHGoogle Scholar
  32. 32.
    Saen RF (2010) Developing a new data envelopment analysis methodology for supplier selection in the presence of both undesirable outputs and imprecise data. Int J Adv Manuf Technol 51:1243–1250CrossRefGoogle Scholar
  33. 33.
    Wang J, Cheng C, Huang K (2009) Fuzzy hierarchical TOPSIS for supplier selection. Appl Soft Comput J 9:377–386CrossRefGoogle Scholar
  34. 34.
    Chen LY, Wang T (2009) Optimizing partners’ choice in IS/IT outsourcing projects: the strategic decision of fuzzy VIKOR. Int J Prod Econ 120:233–242CrossRefGoogle Scholar
  35. 35.
    Chang B, Chang C, Wu C (2011) Fuzzy DEMATEL method for developing supplier selection criteria. Expert Syst Appl 38:1850–1858CrossRefGoogle Scholar
  36. 36.
    Chou S, Chang Y (2008) A decision support system for supplier selection based on a strategy-aligned fuzzy SMART approach. Expert Syst Appl 34:2241–2253CrossRefGoogle Scholar
  37. 37.
    Golmohammadi D, Mellat-Parast M (2012) Developing a grey-based decision making model for supplier selection. Int J Prod Econ 137:191–200CrossRefGoogle Scholar
  38. 38.
    Azadeh A, Alem SM (2010) A flexible deterministic stochastic and fuzzy data envelopment analysis approach for supply chain risk and vendor selection problem: simulation analysis. Expert Syst Appl 37:7438–7448CrossRefGoogle Scholar
  39. 39.
    Chen Y (2011) Structured methodology for supplier selection and evaluation in a supply chain. Inf Sci 181:1651–1670CrossRefGoogle Scholar
  40. 40.
    Falagario M, Sciancalepore F, Costanti N, Pietroforte R (2012) Using a DEA cross efficiency approach in public procurement tenders. Eur J Oper Res 218:523–529MathSciNetCrossRefzbMATHGoogle Scholar
  41. 41.
    Üstün O, Demirtaş EA (2008) An integrated multi-objective decision-making process for multi-period lot-sizing with supplier selection. Omega 36:509–521CrossRefGoogle Scholar
  42. 42.
    Wang T, Yang Y (2009) A fuzzy model for supplier selection in quantity discount environments. Expert Syst Appl 36:12179–12187CrossRefGoogle Scholar
  43. 43.
    Özkök BA, Tiryaki F (2011) A compensatory fuzzy approach to multi-objective linear supplier selection problem with multiple-item. Expert Syst Appl 38:11363–11368CrossRefGoogle Scholar
  44. 44.
    Lin R (2012) An integrated model for supplier selection under a fuzzy situation. Int J Prod Econ 138:55–61CrossRefGoogle Scholar
  45. 45.
    Hsu B, Chiang C, Shu M (2010) Supplier selection using fuzzy quality data and their applications to touch screen. Expert Syst Appl 37:6192–6200CrossRefGoogle Scholar
  46. 46.
    Yeh W, Chuang M (2011) Using multi-objective genetic algorithm for partner selection in green supply chain problems. Expert Syst Appl 38:4244–4253CrossRefGoogle Scholar
  47. 47.
    Rezaei J, Davoodi M (2012) A joint pricing lot-sizing and supplier selection model. Int J Prod Res 50:4524–4542CrossRefGoogle Scholar
  48. 48.
    Tsai W, Hung S (2009) A fuzzy goal programming approach for green supply chain optimization under activity-based costing and performance evaluation with a value-chain structure. Int J Prod Res 47:4991–5017CrossRefzbMATHGoogle Scholar
  49. 49.
    Haleh H, Hamidi A (2011) A fuzzy MCDM model for allocating orders to suppliers in a supply chain under uncertainty over a multi-period time horizon. Expert Syst Appl 38:9076–9083CrossRefGoogle Scholar
  50. 50.
    Feng B, Fan Z, Li Y (2011) A decision method for supplier selection in multiservice outsourcing. Int J Prod Econ 132:240–250CrossRefGoogle Scholar
  51. 51.
    Yu M, Goh M, Lin H (2012) Fuzzy multi-objective vendor selection under lean procurement. Eur J Oper Res 219:305–311CrossRefzbMATHGoogle Scholar
  52. 52.
    Shaw K, Shankar R, Yadav SS, Thakur LS (2012) Supplier selection using fuzzy AHP and fuzzy multi-objective linear programming for developing low carbon supply chain. Expert Syst Appl 39:8182–8192CrossRefGoogle Scholar
  53. 53.
    Shankar L, Basavarajappa B, Kadadevaramath S, Chen JCH (2013) A bi-objective optimization of supply chain design and distribution operations using Non-Dominated Sorting algorithm: a case study. Expert Syst Appl 40:5730–39CrossRefGoogle Scholar
  54. 54.
    Amin SH, Zhang G (2012) An integrated model for closed-loop supply chain configuration and supplier selection: multi-objective approach. Expert Syst Appl 39:6782–6791CrossRefGoogle Scholar
  55. 55.
    Kara SS (2011) Supplier selection with an integrated methodology in unknown environment. Expert Syst Appl 38:2133–2139CrossRefGoogle Scholar
  56. 56.
    Li L, Zabinsky ZB (2011) Incorporating uncertainty into a supplier selection problem. Int J Prod Econ 134:344–356CrossRefGoogle Scholar
  57. 57.
    Russell S, Norvig P (2003) Artificial intelligence: a modern approach, 2nd edn. Prentice Hall, New JerseyzbMATHGoogle Scholar
  58. 58.
    Sadeghieh A, Dehghanbaghi M, Dabbaghi A, Barak S (2012) A genetic algorithm based grey goal programming approach for parts supplier evaluation and selection. Int J Prod Res 50:4612–4630CrossRefGoogle Scholar
  59. 59.
    Guneri AF, Ertay T, Yucel A (2011) An approach based on ANFIS input selection and modeling for supplier selection problem. Expert Syst Appl 38(12):14907–14917CrossRefGoogle Scholar
  60. 60.
    Bai C, Sarkis J (2010) Integrating sustainability into supplier selection with grey system and rough set methodologies. Int J Prod Econ 124:252–264CrossRefGoogle Scholar
  61. 61.
    Kurt U (2014) The fuzzy TOPSIS and generalized Choquet fuzzy integral algorithm for nuclear power plant site selection—a case study from Turkey. J Nucl Sci Technol 51:1241–55CrossRefGoogle Scholar
  62. 62.
    Sugeno M (1974) Theory of fuzzy integrals and its applications. Ph.D thesis TokyoGoogle Scholar
  63. 63.
    Chang YH, Yeh CH (2002) A survey analysis of service quality for domestic airlines. Eur J Oper Res 139:166–177CrossRefzbMATHGoogle Scholar
  64. 64.
    Marichal JR, Meyer P, Roubens M (2005) Sorting multi-attribute alternatives: the TOMASO method. Comput Oper Res 32:861–877CrossRefzbMATHGoogle Scholar
  65. 65.
    Tan C (2011) A multi-criteria interval-valued intuitionistic fuzzy group decision making with Choquet integral-based TOPSIS. Expert Syst Appl 38:3023–3033CrossRefGoogle Scholar
  66. 66.
    Büyüközkan G, Feyzioğlu O, Ersoy MS (2009) Evaluation of 4PL operating models: A decision-making approach based on 2-additive Choquet integral. Int J Prod Econ 121:112–120CrossRefGoogle Scholar
  67. 67.
    Yang YO, Shieh HM, Leu C, Tzeng (2008) A novel Hybrid MCDM Model combined with DEMATEL and ANP with applications. Int J Oper Res 5:160–168Google Scholar
  68. 68.
    Auephanwiriyahul S, Keller JM, Gader PD (2002) Generalized Choquet fuzzy integral fusion. Inf Fusion 3:69–85CrossRefGoogle Scholar
  69. 69.
    Demirel T, Demirel N, Kahraman C (2010) Multi-criteria warehouse location selection using Choquet integral. Expert Syst Appl 37:3943–52CrossRefGoogle Scholar
  70. 70.
    Cebi S (2013) A quality evaluation model for the design quality of online shopping websites. Electron Commer Res Appl 12:124–135CrossRefGoogle Scholar
  71. 71.
    Degraeve Z, Labro E, Roodhooft F (2000) An evaluation of vendor selection models from a total cost of ownership perspective. Eur J Oper Res 125:34–58CrossRefzbMATHGoogle Scholar
  72. 72.
    Ahluwalia J, Gupta SK, Agrawal WP (1993) Computer-aided optimum selection of roller bearings. Comput Aided Des 25:493–499CrossRefGoogle Scholar
  73. 73.
    Erden LA, Akkök M, Taner IE (2001) Development of a knowledge-based system and a comparative study on the selection of bearings. Lubr Eng 57:7–15Google Scholar
  74. 74.
    Pan PY, Cheng K, Harrison DK (2003) A web-based agile system for rolling bearing design. Integr Manuf Syst 14:518–529CrossRefGoogle Scholar
  75. 75.
    Suppapitnarm A (2006) Catalogue-based bearing design by capturing mechanical design knowledge and experience. Proceedings of the 7th WSEAS International Conference on Automation Information Cavtat Croatia pp 32-37Google Scholar
  76. 76.
    Chen CT (2000) Extensions of the TOPSIS for group decision making under fuzzy environment. Fuzzy Sets Syst 114:1–9CrossRefzbMATHGoogle Scholar

Copyright information

© Springer-Verlag London 2016

Authors and Affiliations

  1. 1.Department of Business AdministrationRecep Tayyip Erdoğan UniversityRizeTurkey

Personalised recommendations