Evaluating suppliers in supply chain using a combination technique Fuzzy MOLP-AHP (Case of the study: Azaran Industrial Group)

Mirfakhradini, Seyed Haidar; Nourbakhsh, Iman; Rabiee, Atrina; Rowshan, Sasan

Manuscript ID : IMJ-1801-1003 (R2) Visit : 179 Page: 34 - 48

Article Type: Original Research

Evaluating suppliers in supply chain using a combination technique Fuzzy MOLP-AHP (Case of the study: Azaran Industrial Group)

Subject Areas : Industrial Management

Seyed Haidar Mirfakhradini ¹ , Iman Nourbakhsh ² , Atrina Rabiee ³ , Sasan Rowshan ⁴

1 - Associate Professor, Industrial Management Department, Yazd University, Iran
2 - MSc in Industrial Management, Faculty of Accounting, Economy and Management, Yazd University, Iran
3 - MSc in Industrial Management, Faculty of Administrative Sciences and Economy, Isfahan University, Iran
4 - Ph.D. Student in Public Administration, Faculty of Management and Accounting, Farabi Campus, University of Tehran, Iran

Received: 2018-01-03 Accepted : 2019-01-07 Published : 2019-01-21

Keywords: Supply Chain, fuzzy analytical hierarchy process, multi objective fuzzy programming, fuzzy logic,

Abstract :

In the last decade, supplying raw materials and selection of suppliers in the supply chain has been a challenge for most of the organizations. Since the performance of suppliers has a major impact on the success or failure of the supply chain, Supplier selection known as a strategic task. Thus, in this study - whom has been carried out in the Azaran Industrial Group - researchers has tried to identify the most important criteria in selecting suppliers and determining the importance of each of them according to experts' opinions to select the best suppliers. Therefore, the main criteria for selecting suppliers of a part of parts of the Azaran Industrial Group with a poll of relevant experts were identified through questionnaire. Then by using fuzzy AHP method based on the Analysis of Development, the rate of each criterion and the weight of each supplier - in relation to each criterion - were determined. After that, a fuzzy objective function was created for each criterion. The goal of this function is maximizing the performance of supplier in relation to each criterion. After bringing out the model from fuzzy state, by using the Sum of the Weights, the best supplier was chosen.

References:

Alem Tabriz, A. Bagherzadeh Azar, M. (2010). A Fuzzy ANP Decision Model for Strategic Vendor Selection. Iranian Journal of Trade Studies,14(54): 57-86.

2- Alizadeh Zoeram, A. Pooya, A. (2015). Solving the Supplier Selection Problem Using a Model Based On FDAHP-Vikor Combined Approach. ORMR, 4 (4) :23-48.

3- Amid, A. Ghodsypour, S. H. Obrien, C. (2006). Fuzzy Multi-Objective Linear Model for Supplier Selection in a Supply Chain. International Journal of Production Economics, (104): 394-407.

4- Amiri, M. jahani, S. (2011). Application of IDEA/AHP for Supplier Evaluation and Selection. Industrial Management Journal, 2(5): 5-22.

5- Azar, A. & Faraji, H. (2008). Fuzzy Management Science. Tehran, The institute of Mehraban Nashr press.

6- Boer, D. L. Labro, E. Morlacchi, P. (2001). A Review of Methods Supporting Supplier Selection. European journal of Purchasing & Supply Management, (7): 75-89.

7- Cebi, F. & Bayraktar, D. (2003). An Integrated Approach for Supplier Selection. Logistic Information Management, 16(6): 395-400.

8- Celik, M. Er, I. D. Ozok, A. F. (2009). Application of Fuzzy Extended AHP Methodology on Shipping Registry Selection: The Case of Turkish Maritime Industry. Expert Systems with Applications, (36): 190-198.

9- Dahel, N. E. (2003). Vendor Selection and Order Quantity Allocation in Volume Discount Environments. Supply Chain Management: International Journal, 8(4): 335-342.

10- Daneshvar Rouyendegh, B., Saputro, Th. (2014). Supplier Selection Using Integrated Fuzzy TOPSIS and MCGP: A Case Study. Social and Behavioral Sciences, 116: 3957–3970.

11- Dickson, G. W. (1962). An Analysis of Vendor Selection System and Decisions. Journal of Purchase, 2(1): 28-41.

12- Duran, O. Aguilo, J. (2008). Computer-Aided Machine-Tool Selection Based on a Fuzzy-AHP Approach. Expert Systems with Applications, (34): 1787-1794.

13- Galaba. N. (1974). Multi-Objective Model for Supplier Selection Problem. Journal of Achievements in Materials and Manufacturing Engineering, 31(2): 762-769.

14- Ghodsypour, S. H. Obrien, C. (1998). The Total Cost of Logistics in Supplier Selection, Under Conditions of Multiple Sourcing, Multiple Criteria and Capacity Constraints. International Journal of Production Economics, 58-59: 15-27.

15- Ghodsypour, S. H. Obrien, C. (1997). A Decision Support System for Supplier Selection using an Integrated Analytic Hierarchy Process and Linear Programming. International Journal of Production Economics, 56-57(1-3): 199-212.

16- Jazemi, R. Kheljani, J. Gh. Ghodsypour, S. H. (2010). Modeling of Multi-Objective Supplier Selection Problem by Simultaneously Considering Buyer –Supplier’s Profit. Journal of Industrial Engeneering, 5(44): 153-168.

17- Kahraman, C. Cebeci, U. Ulukan, Z. (2003). Multi-Criteria Supplier Selection using Fuzzy AHP. Logistics Information Management, (6): 382-394.

18- Kumar, M., Vrat, P., Shankar, R. (2004). A Fuzzy Goal Programming Approach for Vendor Selection Problem in a Supply Chain. Computers & industrial Engineering, 46: 203-207.

19- Kumar, N. Chan, F. (2007). Global Supplier Development Considering Risk Factors using Fuzzy Extended AHP- Based Approach. Omega, (35): 417-431.

20- Lee, A. H. I. (2009). A Fuzzy Supplier Selection Model with the Consideration of Benefits, Opportunities, Costs and Risks. Expert Systems with Applications, 36(2): 2879-2893.

21- Li, Q. X., Liu, S. F. (2009). Some results about grey mathematics. Kybernetes, 38(3): 297-305.

22- Mirfakhredini, H. Nourbakhsh, I. Rabiee, A. Bordbar, A. (2016). Evaluation and Prioritization of Suppliers using Fuzzy Topsis Integrated with Ideal Planning by Multiple Choice (Case Study: Oil Company). Journal of Operational Research and its Applications (Applied Mathematics), 47(4): 61-81.

23- Mirfakhredini, H. Peymanfar, M. H. Khatibi Oghada, A. Alimohammadi, H. (2013) Performance Assessment of Sports Organization with BSC–Topsis Integrated Model. Journal of Sport Management, 16(5): 77-96.

24- Moheb Alizadeh, H. Faez, F. (2009). A Multi Objective Approach to Supplier Evaluation using Multiple Criteria Data Envelopment Analysis (MCDEA). Journal of Industrial Engeneering, 43(1): 67-82.

25- Mon, D. L. Cheng, C. H. Lin, J. C. (1994). Evaluating Weapon System using Fuzzy Analytic Hierarchy Process Based on Entropy Weight. Fuzzy Sets and Systems, (62): 127-134.

26- Percin, S. (2008). Use of Fuzzy AHP for Evaluating the Benefits of Information-Sharing Decisions in a Supply Chain. Journal of Enterprise Information Management, (3): 263-284.

27- Pi, W. N., Low, C., (2006). Supplier Evaluation and Selection via Taguchi Loss Functions and an AHP. International Journal of Advance Manufacturing Technology, 27(6), 625-630.

28- Saaty, T. L. & Vargas, L. G. (2006). The Analytic Hierarchy Process: Wash criteria should not be ignored. International Journal of Management & Decision Making, (7): 180–188.

29- Soleimani Shiri, Gh. (2009). Providing a Multi-Criteria Decision Making Model to Select the Best Suppliers in the Supply Chain by Integrating the Analytical Hierarchy Process and Ideal Planning. Journal of Industrial Strategic Management, 6(15): 52-65.

30- Sougli, A. Rajesha, G. Malligab, p. (2008). Supplier Selection Based on AHP and GP methodology. Procedia Engineering, (64): 1283–1292.

31- Tracey, M. Tan, C. L. (2001). Empirical Analysis of Supplier Selection and Involvement, Customer Satisfaction, and Firm Performance. Supply Chain Management: An International journal, 6(4): 174-188.

32- Vahidian, M. H. Alesheikh, A. Alimohammadi, A. Bassiri, A. (2008). Fuzzy Analytical Hierarchy Process in GIS Application. The international Archives of the Photogrammetry, Remote Sensing and Spatial Information Sciences, (37): 593-596.

33- Wang, H. Fang, Zh. Zhu, J. (2005). An Extension of Grey Target Method with Multistage Fuzzy Linguistic Evaluation under Incomplete Weight. Kybernetes, 41(5/6): 736-749.

34- Wang, L. Chu, J. Wu, J. (2007). Selection of Optimum Maintenance Strategies based on a Fuzzy Analytic Hierarchy Process. International Journal of Production Economics, (107): 151-163.

35- Weber, C. A. Current, L. R. Benton, W. C. (1991). Vendor Selection Criteria and Methods. European Journal of Operation Research, (50): 2-18.

36- Weber, C. A. Current, L. R. Benton, W. C. (2000). Assessment and Prioritization of Suppliers using Integrated DEA and GP. European Journal of Operation Research, (63): 232-258.

37- Wu, D. D., Zhang, Y., Wu, D., Olson, D. L., (2010). Fuzzy multi-Objective Programming for Supplier Selection and Risk Modeling: A Possibility Approach. European Journal of Operational Research, 200(3), 774-787.

38- Xia, W. Wu, Z. (2007). Supplier Selection with Multiple Criteria in Volume Discount Environments. Omega, (35): 494-504.

_||_

1- Alem Tabriz, A. Bagherzadeh Azar, M. (2010). A Fuzzy ANP Decision Model for Strategic Vendor Selection. Iranian Journal of Trade Studies,14(54): 57-86.