Supplier selection using a flexible interval-valued fuzzy VIKOR

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ORIGINAL PAPER

Supplier selection using a flexible interval-valued fuzzy VIKOR Iman Mohamad Sharaf1 Received: 6 February 2019 / Accepted: 17 April 2019 Ó Springer Nature Switzerland AG 2019

Abstract One of the major issues in a supply chain (SC) is the selection of the appropriate supplier. Supplier selection (SS) plays a vital role in achieving an effective and successful SC, hence gaining a competitive advantage. This article proposes a novel flexible multi-attribute group decision-making method for SS based on VIseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) using interval-valued fuzzy sets (IVFSs). The method avoids defuzzification, minimizes the computations, and considers the decision-makers’ optimism level. Avoiding defuzzification keeps the characteristics of (IVFSs) and prevents the loss of information. To minimize the computations, two main modifications are done. While all VIKOR-based techniques use both the best and the worst solutions; the proposed VIKOR uses the best solution only, and the division operations by the difference between two fuzzy sets to compute the separation measures and the index Q are eliminated. Ranking plays a crucial role in VIKOR, since three ranking lists are required. The signed distance is modified and used for ranking due to its simple, few computations. None of the previously VIKOR-based techniques accounted for the decisionmakers’ optimism level. Therefore, the signed distance is used in its basic form to keep the a-level explicitly in the ranking formula. Thus, the proposed technique preserves fuzziness, reduces the computations substantially, and allows the participation of the decision-makers through the optimism level. Two examples are solved: one for illustration and the other to compare the results with previously used methods. Keywords Interval-valued fuzzy sets  VIKOR method  Supplier selection

1 Introduction Supply chain management (SCM) is the management of the supply chain wide range of activities required to plan, control, and implement the flow of products, from acquiring raw materials, production, and distribution to the final customer, considering the information systems needed to coordinate these activities in the most effective and efficient possible ways (Stevenson 2005). The appropriate management of the supply chain is the formula for success of every organization (Ordoobadi 2009). Supplier selection (SS) is one of the fundamental activities in a supply chain that immensely affects the products’ quality, cost, and the performance of an organization (Lima Junior et al. 2014).

& Iman Mohamad Sharaf [email protected] 1

Department of Basic Sciences, Higher Technological Institute, Ahmad Hamdy Street, First District, PO Box 228, Tenth of Ramadan City, Egypt

Recently, SS has gained attention, since organizations spend a remarkable amount of their revenues on purchasing. If the selected supplier is incompatible with the manufacturer, this might increase inventory costs, material transport