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A fuzzy-based decision-support model for rebuy procurement

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  • Chen, Chien-Ming

Abstract

Under rapid innovations and technological changes due to fierce competition, purchasing managers are often faced with a high level of uncertainty in making procurement decisions. To maximize the buying firm' overall performance, managers also need to scrutinize suppliers' performance regarding multiple criteria. This paper proposes a practical decision-support model to deal with the rebuy procurement problem in this common scenario. Based on prior transaction data, the decision-support model enables the purchasing manager to obtain the most preferred solution through an interactive procedure. Thus the proposed model can facilitate self-improving learning effects, and tackle supplier selection problems for multiple items with vague information about the multi-dimensional performance of suppliers. The proposed model is applied to an example problem, in which we select suppliers by considering multi-criteria under the demand constraint of multiple items of varied importance to the buying firm.

Suggested Citation

  • Chen, Chien-Ming, 2009. "A fuzzy-based decision-support model for rebuy procurement," International Journal of Production Economics, Elsevier, vol. 122(2), pages 714-724, December.
    • Handle: RePEc:eee:proeco:v:122:y:2009:i:2:p:714-724
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    References listed on IDEAS

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    2. Wong, Bo K. & Lai, Vincent S., 2011. "A survey of the application of fuzzy set theory in production and operations management: 1998-2009," International Journal of Production Economics, Elsevier, vol. 129(1), pages 157-168, January.

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