SUPPLIER SELECTION USING A FUZZY MULTI-CRITERIA METHOD

Abstract

Supplier selection is one of the most crucial tasks in managing supply chain. In selecting the best supplier, a firm has to have a systematic, trusted and supportive method to ensure its success especially the ones in the manufacturing sector. The selection process usually involves multiple criteria and vagueness of human judgment. Thus, this paper presents an application of a fuzzy multi-criteria method, the Fuzzy Analytical Hierarchy Process, to evaluate the relative importance or the weights of the criteria and to rank eighteen selected suppliers in an automotive spare part manufacturing company. The results show that quality is the most important criterion, followed by cost, delivery, customer service and technology support. Then, these weights were used in ranking the suppliers by using the weighted sum average method. The results of this study, if implemented would hopefully help the purchasing department in supplier selection decision.