Supplier evaluation and selection in fuzzy environments: a review of MADM approaches

In past years, the multi-attribute decision-making (MADM) approaches have been extensively applied by researchers to the supplier evaluation and selection problem. Many of these studies were performed in an uncertain environment described by fuzzy sets. This study provides a review of applications of MADM approaches for evaluation and selection of suppliers in a fuzzy environment. To this aim, a total of 339 publications were examined, including papers in peer-reviewed journals and reputable conferences and also some book chapters over the period of 2001 to 2016. These publications were extracted from many online databases and classified in some categories and subcategories according to the MADM approaches, and then they were analysed based on the frequency of approaches, number of citations, year of publication, country of origin and publishing journals. The results of this study show that the AHP and TOPSIS methods are the most popular approaches. Moreover, China and Taiwan are the top countries in terms of number of publications and number of citations, respectively. The top three journals with highest number of publications were: Expert Systems with Applications, International Journal of Production Research and The International Journal of Advanced Manufacturing Technology

An information model for lean, agile, resilient and green supply chain management

Dissertação para a obtenção de Grau de Mestre em Engenharia e Gestão IndustrialIn modern business environments, an effective Supply Chain Management (SCM) is crucial to business continuity. In this context, Lean, Agile, Resilient and Green (LARG), are advocated as the fundamental paradigm for a competitive Supply Chain (SC) as a whole. In fact, competition between supply chains (SC) has replaced the traditional competition between companies. To make a supply chain more competitive, capable of responding to the demands of customers with agility, and capable of responding effectively to unexpected disturbance, in conjugation with environmental responsibilities, and the necessity to eliminate processes that add no value, companies must implement a set of LARG SCM practices and Key Performance Indicators (KPI) to measure their influence on the SC performance. However, the selection of the best LARG SCM practices and KPIs is a complex decision-making problem, involving dependencies and feedbacks. Still, any decision-making must be supported by real and transparent data. This dissertation intends to provide two integrated models to assist the information management and decision-making. The first is an information model to support a LARG SCM, allowing the exchange and storage of data/information through a single information platform. In this model three types of diagrams are developed, Business Process Diagram (BPD), Use Cases Diagram and Class Diagram to assist the information platform design. The second is a decision-making model, designated LARG Analytical Network Process (ANP) to select the best LARG SCM practices/KPI to be implemented in SCs. Both models are developed and validated within the automotive SC, namely in Volkswagen Autoeuropa

Multi-Criteria Decision-Making Methods Application in Supply Chain Management: A Systematic Literature Review

Over the last decade, a large number of research papers, certified courses, professional development programs and scientific conferences have addressed supply chain management (SCM), thereby attesting to its significance and importance. SCM is a multi-criteria decision-making (MCDM) problem because throughout its process, different criteria related to each supply chain (SC) activity and their associated sub-criteria must be considered. Often, these criteria are conflicting in nature. For their part, MCDM methods have also attracted significant attention among researchers and practitioners in the field of SCM. The aim of this chapter is to conduct a systematic literature review of published articles in the application of MCDM methods in SCM decisions at the strategic, tactical and operational levels. This chapter considers major SC activities such as supplier selection, manufacturing, warehousing and logistics. A total of 140 published articles (from 2005 to 2017) were studied and categorized, and gaps in the literature were identified. This chapter is useful for academic researchers, decision makers and experts to whom it will provide a better understanding of the application of MCDM methods in SCM, at various levels of the decision-making process, and establish guidelines for selecting an appropriate MCDM method for managing SC activities

A fuzzy decision tool to evaluate the sustainable performance of suppliers in an agrifood value chain

Sustainable supply chain management has received much attention from both academia and industry due to various issues such as economic stability, environment conservation, and social ethics. To improve the sustainable performance of a value chain, its members need to carefully select their suppliers in relation to their own strategy. Thus, an effective tool for sustainable supplier selection and evaluation is essential, which considers the triple bottom line (TBL) of economic, environmental and social aspects by means of criteria adapted to the situation analysed. This paper develops a fuzzy decision tool to evaluate the sustainable performance of suppliers according to TBL. Sustainability criteria are identified to take into account the real hotspots in a food value chain. The proposed model integrates triangular fuzzy numbers (TFN), AHP (Analytic Hierarchy Process) and TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) in a novel way to consider quantitative and qualitative criteria as well as objective and subjective data. This is missing in most existing research when building their fuzzy models for supplier selection, but critical in dealing with the heterogeneous data available for TBL assessment. The application in a sustainable agrifood value chain illustrates the effectiveness of the proposed tool

A Warehouse Social and Environmental Performance Metrics Framework

To improve the supply chain performance in all three aspects of sustainability (social, economic, and environmental), a comprehensive sustainable performance measurement system that captures all the supply chain partners’ efforts and commitments is required. Warehouse, as the second largest logistics source of environmental pollution in the supply chain has been almost completely overlooked and ignored in the past studies. To fill this gap, a warehouse performance metrics framework for environmental and social performance measures was proposed using a novel Fuzzy Delphi and Best-worst methodological approach. The method is less time-consuming than the Analytic Hierarchy Process or Analytic Network Process, it does not address whether criteria are dependent or independent, requires fewer comparisons of criteria, but still produces reliable and credible results. The presented framework consists of 32 equally formulated environmental and social performance indicators, including formulas and measurement units. The 14 most important indicators are ranked according to the requirements of different stakeholders.</p

A Decision Tool for Supplier Selection That Takes into Account Power and Performance

Companies select their suppliers to provide required performance while being successful partners. An important aspect of collaboration is the power relationship between the company and its suppliers. Although the significance of power in supplier selection is acknowledged, published work rarely includes assessment of power. An empirical study on selecting suppliers for new product developments in a major European diesel engine manufacturing company, supported by three smaller studies with electronic engineering companies, frames overall questions regarding the importance of incorporating power into supplier selection and how this might be achieved. This research proposes an approach that assesses both performance and power and integrates the assessment results by modelling the relative effects of power and performance. It positions the suppliers into six scenarios (ideal, satisfying, tolerable, unfavourable, risky and tough) which depict to what extent a supplier is ‘suitable’ to work with. A reverse analysis reviews the relationship when several suppliers appear suitable. An assessment method is developed incorporating both subjective and objective data for qualitative and quantitative criteria. It combines two decision making methods, AHP and TOPSIS, with triangular fuzzy numbers. Multiple judgements from several decision makers are synthesised. This method is adapted for performance assessment of single, group and cross-group suppliers. Weights are calculated for the criteria, and combined with calculations of supplier performance against each criterion to provide an overall assessment and supplier profile. Power is quantified against a set of power determinants and power relations (supplier dominance, buyer dominance and balanced) are determined. The effects of supplier perceptions (objective, optimistic and pessimistic) are estimated in the calculation. The proposed approach involves complex calculations and a prototype software tool is developed with graphical interfaces. The tool includes performance criteria and power determinants collected from literature and allows users to define new ones. Application to an agriculture case enables the sustainable performance of suppliers (farmers) to be evaluated and compared

Integrated FANP-f-MIGP model for supplier selection in the renewable energy sector

The available integrated models for choosing efficient suppliers developed so far are mostly specific to companies with mass production capabilities. However, in some sectors involved in project-type manufacturing, the same decision-making criteria cannot be applied and, plus, there is no point in determining the quantity of orders. For instance, in wind power plant projects, a single turbine supplier needs to be selected for each project. This study proposes an integrated FANP-f-MIGP model that ensures the selection of the optimal supplier for each project by applying the model to an energy firm. The criteria specific to the selection of wind power plant turbine suppliers are established, and the criteria weights are obtained by fuzzy analytic network process (FANP). As a result of the analysis, the most important criterion of all is cost. These weights constitute the coefficients of the f-MIGP model’s objective function. Under the defined constraints, by minimizing cost and risk and maximizing quality and services of the firm, the selection of an optimal wind turbine supplier from three suppliers for each of three projects is ensured. This study contributes to the literature both by the specific criteria it establishes and its proposed integrated model which allows for the selection of the best supplier in wind turbine and similar project-based productions

Analysis of Decision Support Systems of Industrial Relevance: Application Potential of Fuzzy and Grey Set Theories

The present work articulates few case empirical studies on decision making in industrial context. Development of variety of Decision Support System (DSS) under uncertainty and vague information is attempted herein. The study emphases on five important decision making domains where effective decision making may surely enhance overall performance of the organization. The focused territories of this work are i) robot selection, ii) g-resilient supplier selection, iii) third party logistics (3PL) service provider selection, iv) assessment of supply chain’s g-resilient index and v) risk assessment in e-commerce exercises. Firstly, decision support systems in relation to robot selection are conceptualized through adaptation to fuzzy set theory in integration with TODIM and PROMETHEE approach, Grey set theory is also found useful in this regard; and is combined with TODIM approach to identify the best robot alternative. In this work, an attempt is also made to tackle subjective (qualitative) and objective (quantitative) evaluation information simultaneously, towards effective decision making. Supplier selection is a key strategic concern for the large-scale organizations. In view of this, a novel decision support framework is proposed to address g-resilient (green and resilient) supplier selection issues. Green capability of suppliers’ ensures the pollution free operation; while, resiliency deals with unexpected system disruptions. A comparative analysis of the results is also carried out by applying well-known decision making approaches like Fuzzy- TOPSIS and Fuzzy-VIKOR. In relation to 3PL service provider selection, this dissertation proposes a novel ‘Dominance- Based’ model in combination with grey set theory to deal with 3PL provider selection, considering linguistic preferences of the Decision-Makers (DMs). An empirical case study is articulated to demonstrate application potential of the proposed model. The results, obtained thereof, have been compared to that of grey-TOPSIS approach. Another part of this dissertation is to provide an integrated framework in order to assess gresilient (ecosilient) performance of the supply chain of a case automotive company. The overall g-resilient supply chain performance is determined by computing a unique ecosilient (g-resilient) index. The concepts of Fuzzy Performance Importance Index (FPII) along with Degree of Similarity (DOS) (obtained from fuzzy set theory) are applied to rank different gresilient criteria in accordance to their current status of performance. The study is further extended to analyze, and thereby, to mitigate various risk factors (risk sources) involved in e-commerce exercises. A total forty eight major e-commerce risks are recognized and evaluated in a decision making perspective by utilizing the knowledge acquired from the fuzzy set theory. Risk is evaluated as a product of two risk quantifying parameters viz. (i) Likelihood of occurrence and, (ii) Impact. Aforesaid two risk quantifying parameters are assessed in a subjective manner (linguistic human judgment), rather than exploring probabilistic approach of risk analysis. The ‘crisp risk extent’ corresponding to various risk factors are figured out through the proposed fuzzy risk analysis approach. The risk factor possessing high ‘crisp risk extent’ score is said be more critical for the current problem context (toward e-commerce success). Risks are now categorized into different levels of severity (adverse consequences) (i.e. negligible, minor, marginal, critical and catastrophic). Amongst forty eight risk sources, top five risk sources which are supposed to adversely affect the company’s e-commerce performance are recognized through such categorization. The overall risk extent is determined by aggregating individual risks (under ‘critical’ level of severity) using Fuzzy Inference System (FIS). Interpretive Structural Modeling (ISM) is then used to obtain structural relationship amongst aforementioned five risk sources. An appropriate action requirement plan is also suggested, to control and minimize risks associated with e-commerce exercises

A Review of the Criteria and Methods of Reverse Logistics Supplier Selection

This article presents a literature review on reverse logistics (RL) supplier selection in terms of criteria and methods. A systematic view of past work published between 2008 and 2020 on Web of Science (WOS) databases is provided by reviewing, categorizing, and analyzing relevant papers. Based on the analyses of 41 articles, we propose a three-stage typology of decision-making frameworks to understanding RL supplier selection, including (a) establishment of the selection criteria; (b) calculation of the relative weights and ranking of the selection criteria; (c) ranking of alternatives (suppliers). The main discoveries of this review are as follows. (1) Attention to the field of RL supplier selection is increasing, as evidenced by the increasing number of papers in the field. With the adaption of circular economy legislation and the need resource and business resilience, it is expected that RL and RL supplier selection will be a hot topic in the near future. (2) A large number of papers take &ldquo;sustainability&rdquo; as the theoretical approach to carry out research and use it as the basis for determining the criteria. (3) Multi-criteria decision making (MCDM) methods have been widely used in RL supplier selection and have been constantly innovated. (4) Artificial intelligence methods are also gradually being applied. Finally, gaps in the literature are identified to provide directions for future research. (5) Value-added service is underrepresented in the current study and needs further attention

An Integrated Approach of Fuzzy Quality Function Deployment and Fuzzy Multi-Objective Programming Tosustainable Supplier Selection and Order Allocation

The emergence of sustainability paradigm has influenced many research disciplines including supply chain management. It has drawn the attention of manufacturing companies’ CEOs to incorporate sustainability in their supply chain and manufacturing activities. Supplier selection problem, as one of the main problems in supply chain activities, is also combined with sustainable development where traditional procedures are now transformed to sustainable initiatives. Moreover, allocating optimal order quantities to sustainable suppliers has also attracted attention of many scholars and industrial practitioners, which has not been comprehensively addressed. Therefore, a practical model of supplier selection and order allocation based on the sustainability Triple Bottom Line (TBL) approach is presented in this research article. The proposed approach utilizes Fuzzy Analytical Hierarchy Process combined with Quality Function Deployment (FAHP-QFD) for reflecting buyer’s sustainability requirements into the preference weights that are then exerted by an efficient Fuzzy Assessment Method (FAM) to assess the suppliers to obtain their sustainability scores. Thereupon, these scores are utilized in a fuzzy multi-objective mix-integer non-linear programming model (MINLP) for allocating orders to suppliers based on the manufacturer’s sustainability preference. A real-world application of food industry is presented to show the practicality of the proposed approach