Supplier Selection by Using a Fuzzy Integrated Model for a Textile Company

Abstract

Supply chain management determining the competitive position of corporations in a rival and fast-changing environment is one of the favourite topics in engineering economics. Since the performance of suppliers affects the performance of the whole supply chain, the selection of a supplier is a significant problem in supply chain management. When solving a supplier selection problem, there are many criteria needed to be considered. Therefore, the supplier selection problem is a multi-criteria decision making (MCDM) problem. In the supplier selection process, most of the time, expert data is involved, and the judgement of experts includes ambiguous, imprecise and uncertain data. Thus, there are many methods to solve supplier selection issues by utilising fuzzy set theory, grey theory and rough theory to handle vagueness of a problem. This study also proposes a fuzzy model to solve this problem. In this study, an integrated fuzzy MCDM model including the Fuzzy Analytic Hierarchy Process (FAHP) and the Fuzzy Operational Competitiveness RAting (Fuzzy OCRA) will be proposed to solve supplier selection problem for a Turkish textile company. The FAHP is utilised to determine the weights of considered eight criteria and the fuzzy OCRA is used to rank five fabric suppliers concerning their performances on eight measures. This study is original and it contributes to the literature in two ways: first, this study proposes a fuzzy extension of the OCRA method and second, this study offers a new integrated fuzzy MCDM model consisting of the FAHP and the Fuzzy OCRA. By using a real case study of supplier selection problem, it is attempted to indicate the applicability of the new integrated fuzzy MCDM model for actual circumstances.