Supplier Evaluation and Selection Using a FDEA Model
Due to the growth of global outsourcing, supplier evaluation and selection is one of the strategic decisions for purchasing management in the supply chain. In this chapter, we address the important attributes through the literature that constituent suppli
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Supplier Evaluation and Selection Using a FDEA Model Atefeh Amindoust and Ali Saghafinia
Abstract Due to the growth of global outsourcing, supplier evaluation and selection is one of the strategic decisions for purchasing management in the supply chain. In this chapter, we address the important attributes through the literature that constituent suppliers should possess in order to achieve the successful supply chain. These attributes (criteria) are obtained using an Affinity Diagram. Then, a committee of decision makers is formed to provide linguistic ratings to the candidate suppliers for the selected criteria. The linguistic ratings are then transformed into fuzzy numbers and fed into a fuzzy DEA (FDEA) model based on the a- cut approach assessment of candidate suppliers. A hypothetical application is provided to demonstrate the applicability and feasibility of the method. Keywords Supplier selection
Affinity diagram FDEA
1 Introduction A supply chain is a network of organizations that are involved in different processes and activities that produce value in the form of products and services in the hands of the ultimate consumer [1]. So, the role of suppliers is a key one for the success of the supply chain and therefore supplier selection is a vital decision in supply chain management. In the supplier selection process based on decision makers’ opinion, they normally prefer to verify the suppliers in linguistic terms A. Amindoust (&) Centre of Product Design and Manufacture (CPDM), University of Malaya, 50603 Kuala Lumpur, Malaysia e-mail: [email protected] A. Saghafinia Islamic Azad University Majlesi Branch, Electrical Engineering Department, Esfahan, Iran e-mail: [email protected]
A. Emrouznejad and M. Tavana (eds.), Performance Measurement with Fuzzy Data Envelopment Analysis, Studies in Fuzziness and Soft Computing 309, DOI: 10.1007/978-3-642-41372-8_13, Springer-Verlag Berlin Heidelberg 2014
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instead of numerical form. Using lingusitic terms is a simple and tangible way for them to express their perceptions and a feasible way of securing the company’s information. So, the supplier selection decision is involved with a high degree of vagueness and ambiguity in practice. To deal with this uncertainty, fuzzy set theory is an efficient tool and some researchers have used fuzzy concepts in this area [2–10]. In addition, the nature of supplier selection is a multi-criteria decision. So, a DEA approach based on multiple inputs and outputs is one of the appropriate tools in such decisions [11–17]. But, the DEA has a strong shortcoming that it does not cope with fuzzy data (input and output). Some researchers have proposed various fuzzy DEA (FDEA) models for dealing with the impreciseness and ambiguity in the DEA (readers are referred to [18]). One of the most popular FDEA models is the a-cut based approach which has been applied in this work. This FDEA model is implemented to rank the suppliers in a hypothetical application to show the applicability.
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