Supplier Assessment and Selection Using Fuzzy Analytic Hierarchy Process in a Steel Manufacturing Company

Abstracts

Every
organization needs suppliers and no organization can exist without
suppliers. Therefore, the organizations approach to suppliers and the
selection of the appropriate supplier, its acquisition processes and
policies, and its relationships with suppliers, is of vital importance,
both to organizations and suppliers alike. No organization can be
successful without the support of its supplier base, operationally and
strategically, short or long-term.To select the best supplier, it is
essential to make an analytical decision based upon tangible and
intangible criteria. Chose and management of a supplier has to be
congruent with organizational strategy. Therefore, the vision and
strategy of the manufacturer are the key drivers for how the supply
function will be managed and how supply decisions are made and
exectuted. The proposed model in this study was applied in a steel
manufacturing company in Malaysia with the goal of reducing time in
choosing the correct supplier for the company. This study aims to
provide a systematic model stimulating correct supplier selection using
the Fuzzy Analytic Hierarchy Process (FAHP) method along with a series
of sensitivity analyses which were conducted using the Expert Choice
(EC) program to evaluate the impact of changes in the priority of
criteria for the suppliers' performance and order quantities.

Aims: The main goal of this research is to develop a
systematic model towards the best supplier selection. To facilitate the
aim of the research, we utilized the Fuzzy Analytic Hierarchy Process,
which was a combination of AHP and Fuzzy Theory in order to deal with
the uncertainties and vagueness of decision makers’ judgement.

Study Design: Mention the design of the study here.

Place and Duration of Study: The data samples were taken in a steel manufacturing company in Malaysia.

Methodology: A Fuzzy Analytic Hierarchy approach is
used using a quantitative and qualitative criteria for selecting and
evaluating a suitable supplier selection and a six step was conducted to
ensure successful implementation.

Results: The results indicate that the model is able to
assist decision makers to examine the strengths and weaknesses of
supplier selection by comparing them with appropriate criteria,
sub-criteria and sub sub-criteria.

Conclusion: We developed a Fuzzy AHP multi-criteria
decision making model for supplier evaluation and selection in the ABC
steel company in Malaysia. The advantage of the proposed model over
other models like the AHP is that, by adoption of fuzzy numbers, it
effectively improves the flexibility of the conventional AHP in dealing
with the uncertainty and ambiguity associated with different decision
makers’ judgments.

Fuzzy Analytic Hierarchy Process (FAHP); supplier selection; Total Value of Purchasing (TVP).

Review History

  

Comments

Abstracts

Every
organization needs suppliers and no organization can exist without
suppliers. Therefore, the organizations approach to suppliers and the
selection of the appropriate supplier, its acquisition processes and
policies, and its relationships with suppliers, is of vital importance,
both to organizations and suppliers alike. No organization can be
successful without the support of its supplier base, operationally and
strategically, short or long-term.To select the best supplier, it is
essential to make an analytical decision based upon tangible and
intangible criteria. Chose and management of a supplier has to be
congruent with organizational strategy. Therefore, the vision and
strategy of the manufacturer are the key drivers for how the supply
function will be managed and how supply decisions are made and
exectuted. The proposed model in this study was applied in a steel
manufacturing company in Malaysia with the goal of reducing time in
choosing the correct supplier for the company. This study aims to
provide a systematic model stimulating correct supplier selection using
the Fuzzy Analytic Hierarchy Process (FAHP) method along with a series
of sensitivity analyses which were conducted using the Expert Choice
(EC) program to evaluate the impact of changes in the priority of
criteria for the suppliers' performance and order quantities.

Aims: The main goal of this research is to develop a
systematic model towards the best supplier selection. To facilitate the
aim of the research, we utilized the Fuzzy Analytic Hierarchy Process,
which was a combination of AHP and Fuzzy Theory in order to deal with
the uncertainties and vagueness of decision makers’ judgement.

Study Design: Mention the design of the study here.

Place and Duration of Study: The data samples were taken in a steel manufacturing company in Malaysia.

Methodology: A Fuzzy Analytic Hierarchy approach is
used using a quantitative and qualitative criteria for selecting and
evaluating a suitable supplier selection and a six step was conducted to
ensure successful implementation.

Results: The results indicate that the model is able to
assist decision makers to examine the strengths and weaknesses of
supplier selection by comparing them with appropriate criteria,
sub-criteria and sub sub-criteria.

Conclusion: We developed a Fuzzy AHP multi-criteria
decision making model for supplier evaluation and selection in the ABC
steel company in Malaysia. The advantage of the proposed model over
other models like the AHP is that, by adoption of fuzzy numbers, it
effectively improves the flexibility of the conventional AHP in dealing
with the uncertainty and ambiguity associated with different decision
makers’ judgments.

Fuzzy Analytic Hierarchy Process (FAHP); supplier selection; Total Value of Purchasing (TVP).

Review History

  

Comments