Supplier evaluation and selection: a fuzzy novel multi-criteria group decision-making approach

Abstract

Suppliers’ evaluation and selection is a subject widely explored through many different kinds of approaches and multi-criteria decision methods, and more recently also through group decision making ones. This paper addresses these problems by proposing an easy-going two-phase supplier selection decision model that uses a scientific approach and incorporates performance criteria in screening and selecting the potential suppliers for further optimal supplier selection. The first phase of the model determines the performance of the suppliers on both quantitative and qualitative criteria and the relative importance weights of the criteria. Fuzzy set theory is utilized to deal with the imprecision and vagueness involved with the subjective judgment of both the qualitative data of the decision-matrix and the relative importance weights of the criteria. In the second phase, the suppliers are screened using their efficiencies and an agreed threshold. Then, the optimal supplier for corporation is selected from the limited potential suppliers set. To illustrate the applicability and validate the proposed model, a case study of a beverage producing company located in Ghana, the Sub-Saharan Africa is proposed. The results of the study can provide valuable clues and guidelines to decision-makers and analyst in pre-contract negotiations. The proposed model will assist practicing managers to effectively reduce their supply-base and efficiently select the optimal supplier for corporation. Implications of the study to the theory and practice and future research directions are also outlined.info:eu-repo/semantics/publishedVersio