Global supplier development is a multi-criterion decision problem which includes both qualitative and quantitative factors. The global supplier selection problem is more complex than domestic one and it needs more critical analysis. The aim of this paper is to identify and discuss some of the important and critical decision criteria including risk factors for the development of an efficient system for global supplier selection. Fuzzy extended analytic hierarchy process (FEAHP) based methodology will be discussed to tackle the different decision criteria like cost, quality, service performance and supplier's profile including the risk factors involved in the selection of global supplier in the current business scenario. FEAHP is an efficient tool to handle the fuzziness of the data involved in deciding the preferences of different decision variables. The linguistic level of comparisons produced by the customers and experts for each comparison are tapped in the form triangular fuzzy numbers to construct fuzzy pair-wise comparison matrices. The implementation of the system is demonstrated by a problem having four stages of hierarchy which contains different criteria and attributes at wider perspective. The proposed model can provide not only a framework for the organization to select the global supplier but also has the capability to deploy the organization's strategy to its supplier.

Global supplier development considering risk factors using fuzzy extended AHP-based approach

A supplier selection decision inherently is a multi‐criterion problem. It is a decision of strategic importance to companies. The nature of this decision usually is complex and unstructured. Management science techniques might be helpful tools for these kinds of decision‐making problems. The aim of this paper is to use fuzzy analytic hierarchy process (AHP) to select the best supplier firm providing the most satisfaction for the criteria determined. The purchasing managers of a white good manufacturer established in Turkey were interviewed and the most important criteria taken into account by the managers while they were selecting their supplier firms were determined by a questionnaire. The fuzzy AHP was used to compare these supplier firms.

Multi‐criteria supplier selection using fuzzy AHP

With growing worldwide awareness of environmental protection, green production has become an important issue for almost every manufacturer and will determine the sustainability of a manufacturer in the long term. A performance evaluation system for green suppliers thus is necessary to determine the suitability of suppliers to cooperate with the firm. While the works on the evaluation and/or selection of suppliers are abundant, those that concern environmental issues are rather limited. Therefore, in this study, a model for evaluating green suppliers is proposed. The Delphi method is applied first to differentiate the criteria for evaluating traditional suppliers and green suppliers. A hierarchy is constructed next to help evaluate the importance of the selected criteria and the performance of green suppliers. Since experts may not identify the importance of factors clearly, the results of questionnaires may be biased. To consider the vagueness of experts' opinions, the fuzzy extended analytic hierarchy process is exploited. With the proposed model, manufacturers can have a better understanding of the capabilities that a green supplier must possess and can evaluate and select the most suitable green supplier for cooperation.

https://ir.nctu.edu.tw:443/bitstream/11536/7282/1/000264528600071.pdf

Da-Yong Chang

Papers

Applications of the extent analysis method on fuzzy AHP