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Sunday, 13 April 2014

Supplier Assessment and Selection Using Fuzzy Analytic Hierarchy Process in a Steel Manufacturing Company by Farzad Tahriri, Mohammad Dabbagh, Nader Ale Ebrahim :: SSRN

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



Farzad Tahriri


University of Malaya (UM) - Faculty of Engineering

Mohammad Dabbagh


University of Malaya (UM) - Faculty of Computer Science and Information Technology

Nader Ale Ebrahim


University
of Malaya (UM) - Department of Engineering Design and Manufacture,
Faculty of Engineering; University of Malaya (UM) - Research Support
Unit, Centre of Research Services, Institute of Research Management and
Monitoring (IPPP)




April 5, 2014


Journal of Scientific Research and Reports, vol. 3, no. 10, pp. 1319-1338





Abstract:
    



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.




Number of Pages in PDF File: 20



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





JEL Classification: Q32, L32, M54, P23, P42, L39, P13





Accepted Paper Series




Download This Paper

Date posted:
 

Suggested Citation

Tahriri,
Farzad and Dabbagh, Mohammad and Ale Ebrahim, Nader, Supplier
Assessment and Selection Using Fuzzy Analytic Hierarchy Process in a
Steel Manufacturing Company (April 5, 2014). Journal of Scientific
Research and Reports, vol. 3, no. 10, pp. 1319-1338. Available at SSRN:
http://ssrn.com/abstract=


Supplier Assessment and Selection Using Fuzzy Analytic Hierarchy Process in a Steel Manufacturing Company by Farzad Tahriri, Mohammad Dabbagh, Nader Ale Ebrahim :: SSRN

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