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Global supplier selection using fuzzy analytic hierarchy process and fuzzy goal programming

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Abstract

Global supplier selection is a multi-goal multi-criteria problem which needs to consider both qualitative and quantitative factors. Which suppliers are the best and how much should be purchased from the selected suppliers is an important purchasing issue for manufacturers. Traditionally, decision makers can determine the best supplier from evaluating few suppliers with qualitative supplier selection criteria by using fuzzy analytic hierarchy process (FAHP), but evaluate dozens of global suppliers simultaneously or determine the order quantity from them will be complex and difficult. Meanwhile, decision makers can determine the order quantity form the suitable suppliers by using fuzzy goal programming (FGP); however, it is not easy to decide weights for each goal of global supplier selection with different supply chain strategies. This study integrated the FAHP and FGP (FAHP-FGP) method to be a new approach for global supplier selection in considering the manufacturer’s supply chain strategies. With FAHP-FGP method, the manufacturer can consistently integrate multi-manager’ opinions in determining weights of each goal and obtain the order quantities for suitable suppliers based on manufacturer’s strategies. To demonstrate the usefulness of the proposed method, a real-world case of a digital consumer products manufacturer is presented.

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Authors and Affiliations

  1. Department of Information Management, National Chung Cheng University, 168, University Road, Min-Hsiung Chia-Yi, Taiwan, ROC

    Cheng-Yuan Ku & Hui-Ping Ho

  2. Department and Graduate Institute of Information Management, Chang Gung University, 259 Wen-Hwa 1st Road, Kwei-Shan Tao-Yuan, 333, Taiwan, ROC

    Ching-Ter Chang

  3. Department of International Business Administration, Chienkuo Technology University, Changhua, Taiwan, ROC

    Hui-Ping Ho

Authors
  1. Cheng-Yuan Ku
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  2. Ching-Ter Chang
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  3. Hui-Ping Ho
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Correspondence to Ching-Ter Chang.

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Ku, CY., Chang, CT. & Ho, HP. Global supplier selection using fuzzy analytic hierarchy process and fuzzy goal programming. Qual Quant 44, 623–640 (2010). https://doi.org/10.1007/s11135-009-9223-1

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