Skip to main content

Supplier Evaluation Using Fuzzy Clustering

  • Chapter
  • First Online:

Part of the book series: Studies in Fuzziness and Soft Computing ((STUDFUZZ,volume 313))

Abstract

Since the suppliers have become an important determinant of a company’s success, the selection and evaluation of suppliers plays a vital role in the performance of a company. Although the problem has been formulated extensively as a multi criteria decision making method in the literature, in this study we aim to use fuzzy clustering methodology to define different groups of customers based on their performances. The results of such, can be used by managers to identify similar performing suppliers and generate strategies based on these groups.

This is a preview of subscription content, log in via an institution.

Buying options

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   129.00
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   169.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   169.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

References

  • Amid, A., Ghodsypour, S.H., O’Brien, C.: Fuzzy multi-objective linear model for supplier selection in a supply chain. Int. J. Prod. Econ. 104, 394–407 (2006)

    Article  Google Scholar 

  • Amindoust, A., Ahmed, S., Saghafinia, A., Bahreininejad, A.: Sustainable supplier selection: a ranking model based on fuzzy inference system. Appl. Soft Comput. 12, 20128–21677 (2012)

    Article  Google Scholar 

  • Araz, C., Ozkarahan, I.: Supplier evaluation and management system for strategic sourcing based on a new multicriteria sorting procedure. Int. J. Prod. Econo. 106, 585–606 (2007)

    Article  Google Scholar 

  • Awasthi, A., Chauhan, S.S., Goyal, S.K.: A fuzzy multi-criteria approach for evaluating environmental performance of suppliers. Int. J. Prod. Econ. 126, 370–378 (2010)

    Article  Google Scholar 

  • Babuska, R.: Fuzzy and neural control disc course lecture notes. http://www.dcsc.tudelft.nl/~disc_fnc/transp/fncontrol.pdf (2009)

  • Bezdek, J.C.: Pattern Recognition with Fuzzy Objective Function Algorithms. Plenum Press, New York (1981)

    Book  MATH  Google Scholar 

  • Boran, F.E., Genc, S., Kurt, M., Akay, D.: A multi-criteria intuitionistic fuzzy group decision making for supplier selection with TOPSIS method. Expert Syst. Appl. 36, 11363–11368 (2009)

    Article  Google Scholar 

  • Bruno, G., Esposito, E., Genovese, A., Passaro., R.: AHP-based approaches for supplier evaluation: problems and perspectives. J. Purchasing Supply Manage. 18, 159–172 (2012)

    Google Scholar 

  • Büyüközkan, G., Çifçi, G.: A novel hybrid MCDM approach based on fuzzy DEMATEL, fuzzy ANP and fuzzy TOPSIS to evaluate green suppliers. Expert Syst. Appl. 39, 3000–3011 (2012)

    Article  Google Scholar 

  • Celebi, D., Bayraktar, D.: An integrated neural network and data envelopment analysis for supplier evaluation under incomplete information. Expert Syst. Appl. 35, 1698–1710 (2008)

    Article  Google Scholar 

  • Chan, F.T.S, Kumar, N.: Global supplier development considering risk factors using fuzz extended AHP-based approach. Omega 35, 417–431 (2007)

    Google Scholar 

  • Chan, F.T.S., Kumar, N., Tiwari, M.K., Lau, H.C.W., Choy, K.L.: Global supplier selection: a fuzzy-AHP approach. Int. J. Prod. Res. 46(14), 3825–3857 (2008)

    Article  MATH  Google Scholar 

  • Charnes, A., Cooper, W.W., Rhodes, E.: Measuring the efficiency of decision making units. Eur. J. Oper. Res. 2(6), 429–444 (1978)

    Google Scholar 

  • Che, Z.H.: Clustering and selecting suppliers based on simulated annealing algorithms. Comput. Math. Appl. 63, 228–238 (2012)

    Article  MATH  MathSciNet  Google Scholar 

  • Chen, C.T., Lin, Sue, Huang, F.: A fuzzy approach for supplier evaluation and selection in supply chain management. Int. J. Prod. Econ. 102, 289–301 (2006)

    Article  Google Scholar 

  • Chen, Y.J.: Structured methodology for supplier selection and evaluation in a supply chain. Inf. Sci. 181, 20111–21670 (2011)

    Google Scholar 

  • Chen, Y.H., Chao, R.J.: Supplier selection using consistent fuzzy preference relations. Expert Syst. Appl. 39, 3233–3240 (2012)

    Article  Google Scholar 

  • Chu, T.C., Varma, R.: Evaluating suppliers via a multiple levels multiple criteria decision making method under fuzzy environment. Comput. Ind. Eng. 62, 653–660 (2010)

    Article  Google Scholar 

  • Chu, T.C., Varma, R.: Evaluating suppliers via a multiple levels multiple criteria decision making method under fuzzy environment. Comput. Ind. Eng. 62(2), 653–660 (2012)

    Google Scholar 

  • Day, M., Magnan, G.M., Moeller, M.M.: Evaluating the bases of supplier segmentation: a review and taxonomy. Ind. Mark. Manage. 39(4), 625–639 (2010)

    Google Scholar 

  • Ekici, A.: An improved model for supplier selection under capacity constraint and multiple criteria. Int. J. Prod. Econ. 141, 574–581 (2013)

    Article  Google Scholar 

  • Erdem, A.S., Göçen, E.: Development of a decision support system for supplier evaluation and order allocation. Expert Syst. Appl. 39, 4927–4937 (2012)

    Article  Google Scholar 

  • Falagario, F., Sciancalepore, F., Costantino, N., Pietroforte, R.: Using a DEA-cross efficiency approach in public procurement tenders. Eur. J. Oper. Res. 218(2), 523–529 (2012)

    Google Scholar 

  • Feng, B., Fan, Z.P., Li, Y.: A decision method for supplier selection in multi-service outsourcing. Int. J. Prod. Econ. 132, 2402–2450 (2011)

    Article  Google Scholar 

  • Ferreira, L., Borenstein, D.: A fuzzy-Bayesian model for supplier selection. Expert Syst. Appl. 39, 7834–7844 (2012)

    Google Scholar 

  • Gath, I., Geva, A.B.: Unsupervised optimal fuzzy clustering. IEEE Trans. Pattern Anal. Mach. Intell. 11, 773–781 (1989)

    Article  Google Scholar 

  • Gencer, C., Gürpinar, D.: Analytic network process in supplier selection: a case study in an electronic firm. Appl. Math. Model. 31(11), 2475–2486 (2007)

    Article  MATH  Google Scholar 

  • Ha, H.S., Krishnan, R.: A hybrid approach to supplier selection for the maintenance of a competitive supply chain. Expert Syst. Appl. 34(2), 1303–1311 (2008)

    Article  Google Scholar 

  • Han, J., Kamber, K., Pei, J.: Data Mining: Concepts and Techniques, 3rd edn. Morgan Kaufmann, Burlington (2011)

    Google Scholar 

  • Hintze, J.L.: NCSS User Guide IV, Kaysville, Utah (2007)

    Google Scholar 

  • Ho, W., Xu, X., Dey, P.K.: Multi-criteria decision making approaches for supplier evaluation and selection: a literature review. Eur. J. Oper. Res. 202(1),16–24 (2010)

    Google Scholar 

  • Hsu, B.M., Chiang, C.Y., Shu, M.H.: Supplier selection using fuzzy quality data and their applications to touch screen. Expert Syst. Appl. 37, 6192–6200 (2010)

    Article  Google Scholar 

  • Jain, V., Wadhwa, S., Deshmukh, S.G.: Supplier selection using fuzzy association rules mining approach. Int. J. Prod. Res. 45(6), 1323–1353 (2007)

    Article  MATH  Google Scholar 

  • Kara, S.S.: Supplier selection with an integrated methodology in unknown environment. Expert Syst. Appl. 38, 2133–2139 (2011)

    Article  MathSciNet  Google Scholar 

  • Kaufman, L., Rousseeuw, P.J.: Finding Groups in Data. Wiley, New York (1990)

    Book  Google Scholar 

  • Keskin, G.A., Ilhan, S., Ozkan, C.: The fuzzy art algorithm: a categorization method for supplier evaluation and selection. Expert Syst. Appl. 37(2), 1235–1240 (2010)

    Article  Google Scholar 

  • Khaleie, S., Fasanghari, M., Tavassoli, E.: Supplier selection using a novel intuitionist fuzzy clustering approach. Appl. Soft Comput. 12, 1741–1754 (2012)

    Article  Google Scholar 

  • Krishnapuram, R., Keller J.M.: A possibilistic approach to clustering. IEEE Trans. Fuzzy Syst. 1(2), 98–110 (1993)

    Google Scholar 

  • Kumar, D., Singh, J., Seema, O.P.S.: A fuzzy logic based decision support system for the evaluation of suppliers in supply chain management practices. Math. Comput. Model. 58, 1679–1695 (2013)

    Google Scholar 

  • Kuo, R.J., Hong, S.Y., Huang, Y.H.: Integration of particle swarm optimization-based fuzzy neural network and artificial neural network for supplier selection. Appl. Math. Model. 34, 3976–3990 (2010a)

    Article  MATH  Google Scholar 

  • Kuo, R.J., Wang, Y.C., Tien, F.C.: Integration of artificial neural network and MADA methods for green supplier selection. J. Cleaner Prod. 18, 1161–1170 (2010b)

    Article  Google Scholar 

  • Liao, C.N., Kao, H.P.: Supplier selection model using Taguchi loss function, analytical hierarchy process and multi-choice goal programming. Comput. Ind. Eng. 58, 571–577 (2010)

    Article  Google Scholar 

  • Lin, R.H.: An integrated model for supplier selection under a fuzzy situation. Int. J. Prod. Econ. 138, 55–61 (2012)

    Article  Google Scholar 

  • Mendoza, A., Santiago, E., Ravindran, A.R.: A three-phase multi criteria method to the supplier selection problem. Int. J. Ind. Eng. 15(2), 195–210 (2008)

    Google Scholar 

  • Mendoza, A., Ventura, V.: An effective to supplier selection an order quality allocation. Int. J. Bus. Syst. Res. 2(1), 1–15 (2008)

    Article  Google Scholar 

  • Omurca, S.I.: An intelligent supplier evaluation, selection and development system. Appl. Soft Comput. 13(1), 690–697 (2013)

    Google Scholar 

  • Pal, N.R., Bezdek, J.C.: On cluster validity for fuzzy c-means model. IEEE Trans. Fuzzy Syst. 3, 370–379 (1995)

    Article  Google Scholar 

  • Ramanathan, R.: Supplier selection problem: integrating DEA with the approaches of total cost of ownership and AHP. Supply chain management. Int. J. 12(4), 258–261 (2007)

    Google Scholar 

  • Ravindran, A.R., Bilsel, R.U., Wadhwa, V., Yang, T.: Risk adjusted multi-criteria supplier selection models with applications. Int. J. Prod. Res. 48(2), 405–424 (2010)

    Google Scholar 

  • Razmi, J., Rafiei, H., Hashemi, M.: Designing a decision support system to evaluate and select suppliers using fuzzy analytic network process. Comput. Ind. Eng. 57, 1282–1290 (2009)

    Article  Google Scholar 

  • Ruspini, E.H.: Numerical methods for fuzzy clustering. Inf. Sci. 2, 319–350 (1970)

    Article  MATH  Google Scholar 

  • Saen, R.F.: An algorithm for ranking technology suppliers in the presence of nondiscretionary factors. Appl. Math. Comput. 181(2), 1616–1623 (2006)

    Google Scholar 

  • Saen, R.F.: A new mathematical approach for suppliers selection: accounting for nonhomogeneity is important. Appl. Math. Comput. 185(1), 84–95 (2007)

    Google Scholar 

  • Shemshadi, A., Shirazi, H., Toreihi, M., Tarokh, M.J.: A fuzzy VIKOR method for supplier selection based on entropy measure for objective weighting. Expert Syst. Appl. 38, 12160–12167 (2011)

    Article  Google Scholar 

  • Shih, K.H., Hung, H.F., Lin, B.: Supplier evaluation model for computer auditing and decision-making analysis. Kybernetes 38(9), 1439–1460 (2009)

    Article  Google Scholar 

  • Shu, M.H., Wu, H.C.: Quality-based supplier selection and evaluation using fuzzy data. Comput. Ind. Eng. 57, 1072–1079 (2009)

    Article  Google Scholar 

  • Soroor, J., Tarokh, M.J., Khoshalhan, F., Sajjadi, S.: Intelligent evaluation of supplier bids using a hybrid technique in distributed supply chains. J. Manuf. Syst. 31, 240–252 (2012)

    Article  Google Scholar 

  • Talluri, S., Vickery, S.K., Narayanan, S.: Optimization models for buyer—supplier negotiations. Int. J. Phys. Distrib. Log. Manage. 38(7), 551–20111 (2008)

    Article  Google Scholar 

  • Theodoridis, S., Koutroumbas, K.: Pattern Recognition. Academic Press, New York (2008)

    Google Scholar 

  • Tsai, W.H., Hung, S.J.: A fuzzy goal programming approach for green supply chain optimization under activity-based costing and performance evaluation with a value-chain structure. Int. J. Prod. Res. 47(18), 4991–5017 (2009)

    Article  MATH  Google Scholar 

  • Vahdani, B., Iranmanesh, S.H., Mousavi, S.M., Abdollahzade, M.: A locally linear neuro-fuzzy model for supplier selection in cosmetics industry. Appl. Math. Model. 36, 4714–4727 (2012)

    Article  MATH  MathSciNet  Google Scholar 

  • Vahdani, B., Zandieh, M.: Selecting suppliers using a new fuzzy multiple criteria decision model: the fuzzy balancing and ranking method. Int. J. Prod. Res. 48(18), 5307–5326 (2010)

    Article  MATH  Google Scholar 

  • Wadhwa, V., Ravindran, A.: Vendor selection in outsourcing. Comput. Oper. Res. 34(12), 3725–3737 (2007)

    Article  MATH  Google Scholar 

  • Wang, J.W., Cheng, C.H., Huang, K.C.: Fuzzy hierarchical TOPSIS for supplier selection. Appl. Soft. Comput. 9(1), 377–386 (2009)

    Article  MathSciNet  Google Scholar 

  • Wu, D.: Supplier selection: a hybrid model using DEA, decision tree and neural network. Expert Syst. Appl. 36, 9105–9112 (2009)

    Article  Google Scholar 

  • Wu, T., Shunk, D., Blackhurst, J., Appalla, R.: AIDEA: a methodology for supplier evaluation and selection in a supplier-based manufacturing environment. Int. J. Manuf. Technol. Manage. 11(2), 174–192 (2007)

    Google Scholar 

  • Xiao, Z., Chen, W., Li, L.: An integrated FCM and fuzzy soft set for supplier selection problem based on risk evaluation. Appl. Mathe. Model. 36, 1444–1454 (2012)

    Article  MATH  MathSciNet  Google Scholar 

  • Xie, X.L., Beni, G.: A validity measure for Fuzzy clustering. IEEE Trans. Pattern Anal. Mach. Intell. PAMI. 13(8), 841–847 (1991)

    Google Scholar 

  • Yang, G., Huang, W.J., Lei, L.L.: Using AHP and TOPSIS approaches in nuclear power plant equipment supplier selection. Key Eng. Mater. 419(2), 761–764 (2009)

    Article  Google Scholar 

  • Yang, Y.H., Hui Y.V., Leung, L.C., Chen, G.: An analytic network process approach to the selection of logistics service providers for air cargo. J. Oper. Res. Soci. 61, 1365–1376 (2010)

    Google Scholar 

  • Zeydan, M., Çolpan, C., Çobanoğlu, C.: A combined methodology for supplier selection and performance evaluation. Expert Syst. Appl. 38, 2741–2751 (2011)

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Başar Öztayşi .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2014 Springer-Verlag Berlin Heidelberg

About this chapter

Cite this chapter

Öztayşi, B., Işık, M. (2014). Supplier Evaluation Using Fuzzy Clustering. In: Kahraman, C., Öztayşi, B. (eds) Supply Chain Management Under Fuzziness. Studies in Fuzziness and Soft Computing, vol 313. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-53939-8_4

Download citation

  • DOI: https://doi.org/10.1007/978-3-642-53939-8_4

  • Published:

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-642-53938-1

  • Online ISBN: 978-3-642-53939-8

  • eBook Packages: EngineeringEngineering (R0)

Publish with us

Policies and ethics