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

Journal of Scientific Research and Reports, ISSN: 2320–0227,Vol.: 3, Issue.:
10 (16-31 May)







Original Research Article







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











Farzad Tahriri^1*, Mohammad Dabbagh² and Nader
Ale Ebrahim<sup>3



1</sup>Centre for Product Design and Manufacturing, Department of
Engineering Design and Manufacture, Faculty of Engineering, University of
Malaya, 50603, Kuala Lumpur, Malaysia.

²Department of Software Engineering, Faculty of Computer Science and
Information Technology, University of Malaya, 50603, Kuala Lumpur, Malaysia.

³Research Support Unit, Centre of Research Services, Institute of
Research Management and Monitoring (IPPP), University of Malaya, Malaysia.











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.







Keywords :



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











DOI : 10.9734/JSRR/2014/8627





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