A two-phase fuzzy AHP - fuzzy TOPSIS model for supplier evaluation in manufacturing environment

Abstract

Supplier selection is one of the most important issues in supply chain management (SCM) which greatly affects its performance and market competitiveness. In the recent years, supplier selection in SCM has become imperative to balance between the ordinal and cardinal criteria. This paper proposes a two-phase model which aims to evaluate and select suppliers using an integrated Fuzzy Analytical Hierarchy Process (FAHP) and Fuzzy Technique for Ordering Preference by Similarity to Ideal Solution (FTOPSIS) methods. A fully developed model consisting of several evaluation criteria, both quantitative and qualitative in nature, as assessed by FAHP method to estimate the criteria weights, while FTOPSIS method is used to rank the potential suppliers that have been singled out through expert assessment. The proposed model is a support tool in the optimization of the purchasing process, and it provides the possibility of realizing additional savings by developing stronger cooperation with the optimal supplier.

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