Vendor selection by integrated fuzzy MCDM techniques with independent and interdependent relationships

  • Authors:

  • Jiann Liang Yang;Huan Neng Chiu;Gwo-Hshiung Tzeng;Ruey Huei Yeh

  • Affiliations:

  • Department of Industrial Management, National Taiwan University of Science and Technology, 43 Keelung Road, Second 4, Taipei 106, Taiwan and Department of Marketing and Logistics Management, Lee M ...;Department of Business Administration, Asia University, 500, Liufeng Road, Wufeng, Taichung 41354, Taiwan;Department of Business and Entrepreneurial Management, Kainan University, No. 1, Kainan Road, Luchu, Taoyuan 338, Taiwan and Institute of Management of Technology, College of Management, National ...;Department of Industrial Management, National Taiwan University of Science and Technology, 43 Keelung Road, Second 4, Taipei 106, Taiwan

  • Venue:
  • Information Sciences: an International Journal
  • Year:
  • 2008

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Abstract

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.