Supplier assessment and selection using fuzzy analytic hierarchy process in a steel manufacturing company
Tahriri, F.; Dabbagh, M.; Ale Ebrahim, N. (2014) Supplier assessment and selection using fuzzy analytic hierarchy process in a steel manufacturing company. Journal of Scientific Research and Reports, 3 (10). pp. 1319-1338. ISSN 2320–0227
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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's 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's judgments.
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's 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's judgments.
| Item Type: | Article |
|---|---|
| Creators: | |
| Journal or Publication Title: | Journal of Scientific Research and Reports |
| Uncontrolled Keywords: | Fuzzy Analytic Hierarchy Process (FAHP); supplier selection; Total Value of Purchasing (TVP) |
| Subjects: | A General Works > AC Collections. Series. Collected works L Education > L Education (General) T Technology > T Technology (General) T Technology > TS Manufactures |
| Divisions: | Faculty of Engineering |
| Depositing User: | Dr. Nader Ale Ebrahim |
| Date Deposited: | 15 Apr 2014 16:15 |
| Last Modified: | 15 Apr 2014 16:15 |
| URI: | http://eprints.um.edu.my/id/eprint/9836 |
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