An Enhanced Two-Phase Fuzzy Programming Model for Multi-Objective Supplier Selection Problem

Supplier selection is an essential task within the purchasing function of supply chain management because it provides companies with opportunities to reduce various costs and realize stable and reliable production. However, many companies find it difficult to determine which suppliers should be targ...

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Bibliographic Details
Published in:Industrial Engineering & Management Systems Vol. 11; no. 1; pp. 1 - 10
Main Authors: Fatrias, Dicky, Shimizu, Yoshiaki
Format: Journal Article
Language:English
Published: 대한산업공학회 01.03.2012
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ISSN:1598-7248, 2234-6473
Online Access:Get full text
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Summary:Supplier selection is an essential task within the purchasing function of supply chain management because it provides companies with opportunities to reduce various costs and realize stable and reliable production. However, many companies find it difficult to determine which suppliers should be targeted as each of them has varying strengths and weaknesses in performance which require careful screening by the purchaser. Moreover, information required to assess suppliers is not known precisely and typically fuzzy in nature. In this paper, therefore, fuzzy multi-objective linear programming (fuzzy MOLP) is presented under fuzzy goals: cost minimization, service level maximization and purchasing risk. To solve the problem, we introduce an enhanced two-phase approach of fuzzy linear programming for the supplier selection. In formulated problem, Analytical Hierarchy Process (AHP) is used to determine the weights of criteria, and Taguchi Loss Function is employed to quantify purchasing risk. Finally, we provide a set of alternative solution which enables decision maker (DM) to select the best compromise solution based on his/her preference. Numerical experiment is provided to demonstrate our approach. KCI Citation Count: 1
Bibliography:G704-002162.2012.11.1.002
ISSN:1598-7248
2234-6473
DOI:10.7232/iems.2012.11.1.001