# zbMATH — the first resource for mathematics

Vendor selection by integrated fuzzy MCDM techniques with independent and interdependent relationships. (English) Zbl 1158.90367
Summary: Vendor selection is an evaluation process that is based on many criteria that uses inaccurate or uncertain data. But while the criteria are often numerous and the relationships between higher-level criteria and lower-level sub-criteria are complex, most conventional decision models cannot help us clarify the interrelationships among the sub-criteria. Our proposed integrated fuzzy multiple criteria decision making (MCDM) method addresses this issue within the context of the vendor selection problem. First, we use triangular fuzzy numbers to express the subjective preferences of evaluators. Second, we use interpretive structural modeling (ISM) to map out the relationships among the sub-criteria. Third, we use the fuzzy analytical hierarchy process (AHP) method to compute the relative weights for each criterion, and we use non-additive fuzzy integral to obtain the fuzzy synthetic performance of each common criterion. Fourth, the best vendor is determined according to the overall aggregating score of each vendor using the fuzzy weights with fuzzy synthetic utilities. Fifth, we use an empirical example to show that our proposed method is preferred to the traditional method, especially when the sub-criteria are interdependent. Finally, our results provide valuable suggestions to vendors on how to improve each sub-criterion so that they can bridge the gap between actual and aspired performance values in the future.

##### MSC:
 90B50 Management decision making, including multiple objectives 90C70 Fuzzy and other nonstochastic uncertainty mathematical programming
Full Text:
##### References:
 [1] Bellman, R.E.; Zadeh, L.A., Decision making in a fuzzy environment, Management science, 17, 4, 141-164, (1970) · Zbl 0224.90032 [2] Brans, J.P.; Vincke, P., A preference ranking organization method, Management science, 31, 6, 647-656, (1985) · Zbl 0609.90073 [3] Buckley, J.J., Fuzzy hierarchical analysis, Fuzzy sets system, 17, 1, 233-247, (1985) · Zbl 0602.90002 [4] Chen, M.F.; Tzeng, G.H.; Tang, M., Fuzzy MCDM approach for evaluation of expatriate assignments, International journal of information technology and decision making, 4, 2, 1-20, (2005) [5] Chen, Y.W.; Tzeng, G.H., Using fuzzy integral for evaluating subjectively perceived travel costs in a traffic assignment model, European journal of operational research, 130, 3, 653-664, (2001) · Zbl 0982.90005 [6] Chiang, J.H., Choquet fuzzy integral-based hierarchical networks for decision analysis, IEEE transactions on fuzzy systems, 7, 1, 63-71, (1999) [7] Chiu, H.K.; Tzeng, G.H., Fuzzy multiple-criteria decision making approach for industrial Green engineering, Environmental management, 30, 6, 816-830, (2002) [8] Chiu, H.K.; Tzeng, G.H.; Cheng, D.C., Evaluating sustainable fishing development strategies using fuzzy MCDM approach, Omega, 33, 2, 223-234, (2005) [9] Chiu, Y.C.; Shyu, J.Z.; Tzeng, G.H., Fuzzy MCDM for evaluating the e-commerce strategy, International journal of computer applications in technology, 19, 1, 12-22, (2004) [10] Chou, T.Y.; Tzeng, S.C.; Tzeng, G.H., Evaluating IT/IS investments: a fuzzy multi-criteria decision model approach, European journal of operational research, 173, 3, 1026-1046, (2006) · Zbl 1131.90375 [11] De Boer, L.; Labro, E.; Morlacchi, P., A review of methods supporting supplier selection, European journal of purchasing and supply management, 7, 2, 75-89, (2001) [12] Degraeve, Z.; Labro, E.; Roodhooft, F., An evaluation of supplier selection methods from a total cost ownership perspective, European journal of operational research, 125, 1, 34-59, (2000) · Zbl 0959.90027 [13] Dickson, G.W., An analysis of vendor selection systems and decisions, Journal of purchasing, 2, 1, 5-17, (1966) [14] Ding, J.F.; Liang, G.S., Using fuzzy MCDM to select partners of strategic alliances for liner shipping, Information sciences, 173, 1-3, 197-225, (2005) · Zbl 1104.91015 [15] Evans, R.H., Product involvement and industrial buying, Journal of purchasing and materials management, 17, 2, 23-28, (1981) [16] Florez-Lopez, R., Strategic supplier selection in the added-value perspective: a CI approach, Information sciences, 177, 5, 1169-1179, (2007) [17] Ghoudsypour, S.H.; O’Brien, C.O., A decision support system for supplier selection using an integrated analytic hierarchy process and linear programming, International journal of production economics, 56-57, 1-3, 199-212, (1998) [18] Grabisch, M., Fuzzy integral in multicriteria decision making, Fuzzy sets and systems, 69, 3, 279-298, (1995) · Zbl 0845.90001 [19] Holt, G.D., Which contractor selection methodology?, International journal of project management, 16, 3, 153-164, (1998) [20] Hsieh, T.Y.; Lu, S.T.; Tzeng, G.H., Fuzzy MCDM approach for planning and design tenders selection in public office buildings, International journal of project management, 22, 7, 573-584, (2004) [21] Ishii, K.; Sugeno, M., A model of human evaluation process using fuzzy measure, International journal of man-machine studies, 22, 1, 19-38, (1985) · Zbl 0567.90059 [22] Kumar, M.; Vrat, P.; Shankar, R., A fuzzy goal programming approach for vendor selection problem in a supply chain, Computers and industrial engineering, 46, 1, 69-85, (2004) [23] Mandal, A.; Deshmukh, S.G., Vendor selection using interpretive structural modeling, International journal of operations and production management, 14, 6, 52-59, (1994) [24] Mikhailov, L., Fuzzy analytical approach of partnership selection in formation of virtual enterprises, Omega, 30, 2, 393-401, (2002) [25] P. Morlacchi, Vendor evaluation and selection: the design process and a fuzzy – hierarchical model, in: Proceedings of the 8th IPSERA Conference, Dublin, 1999. [26] Narasimhan, R.; Talluri, S.; Mendez, D., Supplier evaluation and rationalization via data envelopment analysis: an empirical example, Journal supply chain management, 37, 3, 28-37, (2001) [27] Nydick, R.L.; Hill, R.P., Using the analytic hierarchy process to the supplier selection problem, International journal of purchasing and materials management, 28, 2, 31-36, (1992) [28] Opricovic, S.; Tzeng, G.H., Defuzzification within a fuzzy multicriteria decision model, International journal of uncertainty, fuzziness and knowledge-based systems, 11, 5, 635-652, (2003) · Zbl 1072.68619 [29] Saaty, T.L., The analytical hierarchy process, (1980), McGraw-Hill New York · Zbl 1176.90315 [30] Shyur, H.J.; Shih, H.S., A hybrid MCDM model for strategic vendor selection, Mathematical and computer modelling, 44, 8, 749-761, (2006) · Zbl 1178.90196 [31] Sugeno, M., Theory of fuzzy integrals and its applications, (1974), Tokyo Institute of Technology Tokyo [32] Tseng, F.M.; Chiu, Y.J., Hierarchical fuzzy integral stated preference method for taiwan’s broadband service market, Omega, 33, 1, 55-64, (2005) [33] Tsiporkova, E.; Boeva, V., Multi-step ranking of alternatives in a multi-criteria and multi-expert decision making environment, Information sciences, 176, 18, 2673-2697, (2006) · Zbl 1102.68655 [34] Tzeng, G.H.; Ou Yang, Y.P.; Lin, C.T.; Chen, C.B., Hierarchical MADM with fuzzy integral for evaluating enterprise intranet web sites, Information sciences, 169, 3-4, 409-426, (2005) [35] Verma, R.; Pullman, M.E., An analysis of the supplier selection process, Omega, 26, 6, 739-750, (1998) [36] Warfield, J.N., Toward interpretation of complex structural modeling, IEEE transactions systems man cybernet, 4, 5, 405-417, (1974) · Zbl 0283.68033 [37] Warfield, J.N., Developing interconnection matrices in structural modeling, IEEE transactions systems man cybernet, 4, 1, 81-87, (1974) [38] Warfield, J.N., Societal systems: planning, policy, and complexity, (1976), Wiley Interscience New York [39] Weber, C.A.; Current, J.R.; Benton, W.C., Vendor selection criteria and methods, European journal of operational research, 50, 1, 2-18, (1991) · Zbl 1403.90061 [40] Weber, C.A.; Current, J.R.; Desai, A., An optimization approach to determining the number of vendors to employ, Supply chain management: an international journal, 5, 2, 90-98, (2000) [41] Yager, R.R.; Filev, D.P., Essentials of fuzzy modeling and control, (1994), Wiley New York [42] Zadeh, L.A., Fuzzy sets, Information and control, 8, 3, 338-353, (1965) · Zbl 0139.24606 [43] Zhao, R.; Govind, R., Algebraic characteristics of extended fuzzy numbers, Information science, 54, 1, 103-130, (1991) · Zbl 0774.26015
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. It attempts to reflect the references listed in the original paper as accurately as possible without claiming the completeness or perfect precision of the matching.