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Fuzzy multi-objective vendor selection under lean procurement

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  • Yu, Min-Chun
  • Goh, Mark
  • Lin, Hung-Chung

Abstract

This paper investigates a fuzzy multi-objective vendor selection program under lean procurement based on cost minimization, delivery schedule violation minimization, and maximizing the quality level of the purchased quantity. Specifically, the paper incorporates the vendor production capacity uncertainty into the model to identify an appropriate selection policy for vendors under practical operating conditions. The use of a soft time-window mechanism for the vendor selection model enables decision makers to further incorporate a time based performance metric for vendor evaluation, based on the degree of urgency or need for a part. A solution algorithm using fuzzy AHP is proposed. The results of a numerical example suggest that decision makers prefer vendors who can promise tighter delivery schedules rather than on cost or quality. A sensitivity analysis of the soft time-window on the achievement of the lean procurement objectives is also conducted.

Suggested Citation

  • Yu, Min-Chun & Goh, Mark & Lin, Hung-Chung, 2012. "Fuzzy multi-objective vendor selection under lean procurement," European Journal of Operational Research, Elsevier, vol. 219(2), pages 305-311.
    • Handle: RePEc:eee:ejores:v:219:y:2012:i:2:p:305-311
    DOI: 10.1016/j.ejor.2011.12.028
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    References listed on IDEAS

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    Cited by:

    1. Marcus V. C. Fagundes & Bernd Hellingrath & Francisco G. M. Freires, 2021. "Supplier Selection Risk: A New Computer-Based Decision-Making System with Fuzzy Extended AHP," Logistics, MDPI, vol. 5(1), pages 1-17, March.
    2. Yongbo Li & Ali Diabat & Chung-Cheng Lu, 2020. "Leagile supplier selection in Chinese textile industries: a DEMATEL approach," Annals of Operations Research, Springer, vol. 287(1), pages 303-322, April.
    3. Yen-Cheng Chen & Tung-Han Yu & Pei-Ling Tsui & Ching-Sung Lee, 2014. "A fuzzy AHP approach to construct international hotel spa atmosphere evaluation model," Quality & Quantity: International Journal of Methodology, Springer, vol. 48(2), pages 645-657, March.
    4. Srđan Ljubojević & Dragan Pamučar & Dragutin Jovanović & Vujadin Vešović, 2019. "Outsourcing transport service: a fuzzy multi-criteria methodology for provider selection based on comparison of the real and ideal parameters of providers," Operational Research, Springer, vol. 19(2), pages 399-433, June.
    5. Dey, Prasanta Kumar & Bhattacharya, Arijit & Ho, William, 2015. "Strategic supplier performance evaluation: A case-based action research of a UK manufacturing organisation," International Journal of Production Economics, Elsevier, vol. 166(C), pages 192-214.
    6. Elham Dehghan Manshadi & Mohamad Reza Mehregan & Hossein Safari, 2015. "Supplier Classification Using UTADIS Method Based on Performance Criteria," International Journal of Academic Research in Business and Social Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Business and Social Sciences, vol. 5(2), pages 31-45, February.

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