Authors: Mostafa Ahmadi; Sarkis L. Kantardjian
Addresses: Business and Management Department of the Faculty of Economics, Yerevan State University, Above st, 52, Yerevan, Armenia. ' Business and Management Department of the Faculty of Economics, Yerevan State University, Above st, 52, Yerevan, Armenia
Abstract: In a competitive environment, the selection of suppliers are the most critical issues facing manufacturing firms because the costs of raw materials and components may, in fact, comprise the major portion of a product's final cost. Selecting an appropriate supplier can significantly reduce purchasing costs, decrease production lead time, increase customer satisfaction, and strengthen corporate competitiveness. In this paper an integrated supplier selection model is presented in which fuzzy analytical hierarchy process (FAHP) method is used to determination of criteria weight and by using intuitionistic fuzzy technique for order performance by similarity to ideal solution (IF-TOPSIS) method suppliers are ranked in a multiple criteria decision making frame work.
Keywords: intuitionistic fuzzy sets; supplier selection; fuzzy AHP; analytical hierarchy process; TOPSIS; order preference; similarity; ideal situations; competitive environments; critical issues; manufacturing firms; raw materials; components; product costs; final costs; cost reduction; purchasing costs; production lead times; customer satisfaction; corporate competitiveness; integrated models; criteria weight; order performance; ideal solutions; multicriteria decision making; MCDM; business performance; SCM; supply chain management; modelling.
International Journal of Business Performance and Supply Chain Modelling, 2012 Vol.4 No.2, pp.91 - 110
Available online: 31 Jul 2012 *Full-text access for editors Access for subscribers Purchase this article Comment on this article