Fuzzy Optimization Model for Decision-Making in Supply Chain Management

Mathematics ◽  
2021 ◽  
Vol 9 (4) ◽  
pp. 312
Author(s):  
Jui-Fang Chang ◽  
Chao-Jung Lai ◽  
Chia-Nan Wang ◽  
Ming-Hsien Hsueh ◽  
Van Thanh Nguyen

Choosing a supplier is a complex decision-making process that can reduce the total cost of production inputs and increase profits without increasing the price or sacrificing product quality. However, supplier selection processes usually involve multiple quantitative and qualitative criteria which increase the complexity of the problem and may decrease the accuracy and effectiveness of the process. Such complex decision-making problems can be supported by using multicriteria decision-making (MCDM) models. While there have been multiple MCDM models to support supplier selection processes in different industries and sectors, only a few are developed to support the supplier selection processes in the garment industry, especially under uncertain decision-making environment. This paper presents an integrated mathematical model under a fuzzy environment and applies it to the supplier selection process in the garment industry. In this research, the authors utilize the Buckley extension based fuzzy Analytical Hierarchical Process (FAHP) method in combination with linear normalization based fuzzy Grey Relational Analysis (F-GRA) method to develop a MCDM approach to the supplier selection process under a fuzzy environment. As a result, supplier 08 (SA08) is the optimal supplier. The contribution of this work is to propose an MCDM model for ranking potential suppliers in the garment industry under a fuzzy environment. The proposed approach can also be applied to support complex decision-making processes under a fuzzy environment in different industries.

2013 ◽  
Vol 2013 ◽  
pp. 1-22 ◽  
Author(s):  
Nadia Jamil ◽  
Rosli Besar ◽  
H. K. Sim

This paper is designed to present the effectiveness of group multicriteria decision making in automotive manufacturing company focusing on the selection of suppliers in Malaysia. The process of selecting suppliers is one of the most critical and challenging endeavor in any supply chain management. There are five decision making tools being analyzed in this study, namely, analytical hierarchy process (AHP), fuzzy analytical hierarchy process (FAHP), technique for order performance by similarity to ideal solution (TOPSIS), fuzzy technique for order performance by similarity to ideal solution (FTOPSIS), and fuzzy analytical hierarchy process integrated with fuzzy technique for order performance by similarity to ideal solution (FAHPiFTOPSIS). The scores of ranking among the suppliers in each MCDM tools (AHP, FAHP, TOPSIS, FTOPSIS, and FAHPiFTOPSIS) show significantly comparable variation. Scores of the best supplier is then compared to the lowest supplier for all MCDM tools whereby this reflects that the highest percentage goes to TOPSIS with scoring of 79.37%. On the contrary, FAHPiFTOPSIS demonstrated the lowest score variation of 22.42% which indicates that FAHPiFTOPSIS is able to eliminate biasness in supplier selection process.


Author(s):  
Hüseyin Selçuk KILIÇ

Due to the increasing competitiveness in every sector of business life, being effective in every process of the organizations has been required. At this point, one of the most important processes is supplier selection process within the concept of supply chain management. If a systematic supplier selection methodology is performed, it will be possible to select the most suitable supplier and provide efficiency with respect to time, quality and cost. With this study, depending on the vague structure of the real working environment, an extensively used multi criteria decision making methodology TOPSIS is used within fuzzy environment. The proposed technique is applied in a real case and the most suitable suppliers are determined and ranked.


Processes ◽  
2019 ◽  
Vol 7 (7) ◽  
pp. 400 ◽  
Author(s):  
Chia-Nan Wang ◽  
Ching-Yu Yang ◽  
Hung-Chun Cheng

Vietnam’s garment industry is facing many challenges, including domestic competition and the global market. The free trade agreement, which Vietnam signed, includes environmental barriers, sustainable development, and green development. The agreement further requires businesses to make efforts to improve not only product quality but also the production process. In cases when enterprises cause environmental pollution in the production process and do not apply solutions to reduce waste, save energy, and natural resources, there is a risk of no longer receiving orders or orders being rejected, especially orders from the world’s major branded garment companies. In this research, the authors propose a multicriteria decision-making model (MCDM) for optimizing the supplier evaluation and selection process for the garment industry using sustainability considerations. In the first stage of this research, all criteria affecting supplier selection are determined by a triple bottom line (TBL) model (economic, environmental, and social aspects) and literature reviews; in addition, the fuzzy analytic hierarchy process (FAHP) method was utilized to identify the weight of all criteria in the second stage. The technique for order preference by similarity to an ideal solution (TOPSIS) is a multicriteria decision analysis method, which is used for ranking potential suppliers in the final stage. As a result, decision-making unit 10 (DMU/10) is found to be the best supplier for the garment industry. The contribution of this research includes modeling the supplier selection decision problem based on the TBL concept. The proposed model also addresses different complex problems in supplier selection, is a flexible design model for considering the evaluation criteria, and is applicable to supplier selection in other industries.


2019 ◽  
Vol 2019 ◽  
pp. 1-10 ◽  
Author(s):  
Serap Akcan ◽  
Meral Güldeş

In supply chain literature, supplier evaluation and selection problem is one of the most studied subjects because of the significant roles of suppliers in terms of the chain’s sustainability and profitability. Therefore, it is important for organizations to adopt a systematic way to evaluate and select the best supplier according to their respective criteria in today’s competitive environment. Multicriteria decision-making methods provide for this need of organizations because determination of an appropriate supplier selection is a multicriteria decision-making (MCDM) problem essentially. Although a lot of applications of these methods for supplier evaluation and selection can be seen in the literature, studies in the health-care sector are insufficient. Hospitals in the health-care sector also have to consider their supplier-related decisions to decrease risks and threads which affect their effectiveness. The aim of this study was to fill this gap by providing different hybrid models for selecting the best supplier for hospitals. Supplier evaluation and selection process start with recognizing the related criteria according to the studies in the literature. Analytic hierarchy process (AHP) method is deployed to weight the criteria, and suppliers are listed via technique for order preference by similarity to ideal solution (TOPSIS), elimination and choice translating reality English (ELECTRE), grey relational analysis (GRA), and simple additive weighting (SAW) methods. The main aim of this study was to present different hybrid MCDM methods and show their efficiency and consistency with each other. In this study, hybrid multicriteria decision-making models (AHP-TOPSIS, AHP-ELECTRE, AHP-GRA, and AHP-SAW) are presented and compared. The results show that the presented hybrid methods in this study are consistent with each other and give the same ranking for the selection of the best supplier. It can be considered as a useful guideline for hospitals.


Author(s):  
CARINA ALVES ◽  
ANTHONY FINKELSTEIN

The development of COTS-based systems largely depends on the success of the selection process. This activity encompasses the evaluation of COTS packages against customer requirements, so that it is necessary to perform a complex decision-making process to select the most suitable package. We argue that analysing the matching between features and requirements is a core task of COTS decision-making. In particular, it is very likely that mismatches occur, as COTS are designed to meet very general requirements rather than specific needs. In this paper, we investigate the different types of conflicts that can arise from these mismatches. We propose a goal driven framework to deal with such conflicts. We demonstrate the approach with the mail server case study.


2013 ◽  
Vol 2013 ◽  
pp. 1-9 ◽  
Author(s):  
Prasad Karande ◽  
Shankar Chakraborty

Better utilization of manpower, providing product flexibility, increasing productivity, decreasing lead time, reduction in handling cost, increased efficiency of material flow, and enhancement of production process are some of the most important issues influencing material handling (MH) equipment selection decision. As a wide variety of MH equipment is available today, selection of the proper equipment for a designed manufacturing system is a complicated task. Selection of suitable MH equipment for a typical handling environment is found to be a multicriteria decision-making (MCDM) problem. As the selection process is found to be unstructured, characterized by domain dependent knowledge, there is a need to apply an efficient MCDM tool to select the most suitable MH equipment for the given application. This paper applies weighted utility additive (WUTA) method to solve an MH equipment selection problem. The ranking obtained using the WUTA method is compared with that derived by the past researchers which proves its potentiality, applicability, and accuracy to solve complex decision-making problems.


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