Supplier Selection Risk: A New Computer-Based Decision-Making System with Fuzzy Extended AHP
Supplier risks have attracted significant attention in the supply chain risk management literature. In this article, we propose a new computational system based on the ‘Fuzzy Extended Analytic Hierarchy Process (FEAHP)’ method for supplier selection while considering the relevant risks. We sought to...
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| Format: | Article |
| Language: | English |
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MDPI AG
2021-03-01
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| Series: | Logistics |
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| Online Access: | https://www.mdpi.com/2305-6290/5/1/13 |
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| author | Marcus V. C. Fagundes Bernd Hellingrath Francisco G. M. Freires |
| author_facet | Marcus V. C. Fagundes Bernd Hellingrath Francisco G. M. Freires |
| author_sort | Marcus V. C. Fagundes |
| collection | DOAJ |
| description | Supplier risks have attracted significant attention in the supply chain risk management literature. In this article, we propose a new computational system based on the ‘Fuzzy Extended Analytic Hierarchy Process (FEAHP)’ method for supplier selection while considering the relevant risks. We sought to evaluate the opportunities and limitations of using the FEAHP method in supplier selection and analyzed the support of the system developed through the real case of a Brazilian oil and natural gas company. The computational approach based on FEAHP automates supplier selection by determining a hierarchy of criteria, sub-criteria, and alternatives. First, the criteria and sub-criteria specific to the selection problem were identified by the experts taking the relevant literature as a starting point. Next, the experts performed a pair-wise comparison of the predefined requirements using a linguistic scale. This evaluation was then quantified by calculating the priority weights of criteria, sub-criteria, and alternatives. The best decision alternative is the one with the highest final score. Sensitivity analysis was performed to verify the results of the proposed model. The FEAHP computer approach automated the supplier selection process in a rational, flexible, and agile way, as perceived by the focal company. From this, we hypothesized that using this system can provide helpful insights in choosing the best suppliers in an environment of risk and uncertainty, thereby maximizing supply chain performance. |
| format | Article |
| id | doaj-art-9904e12b4e6e4e64876c63d001872988 |
| institution | Kabale University |
| issn | 2305-6290 |
| language | English |
| publishDate | 2021-03-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Logistics |
| spelling | doaj-art-9904e12b4e6e4e64876c63d0018729882025-08-20T03:37:02ZengMDPI AGLogistics2305-62902021-03-01511310.3390/logistics5010013Supplier Selection Risk: A New Computer-Based Decision-Making System with Fuzzy Extended AHPMarcus V. C. Fagundes0Bernd Hellingrath1Francisco G. M. Freires2Graduate Program in Industrial Engineering, Federal University of Bahia, Salvador, BA 40210-630, BrazilDepartment of Information Systems, Münster School of Business and Economics, University of Münster, 48149 Münster, GermanyGraduate Program in Industrial Engineering, Federal University of Bahia, Salvador, BA 40210-630, BrazilSupplier risks have attracted significant attention in the supply chain risk management literature. In this article, we propose a new computational system based on the ‘Fuzzy Extended Analytic Hierarchy Process (FEAHP)’ method for supplier selection while considering the relevant risks. We sought to evaluate the opportunities and limitations of using the FEAHP method in supplier selection and analyzed the support of the system developed through the real case of a Brazilian oil and natural gas company. The computational approach based on FEAHP automates supplier selection by determining a hierarchy of criteria, sub-criteria, and alternatives. First, the criteria and sub-criteria specific to the selection problem were identified by the experts taking the relevant literature as a starting point. Next, the experts performed a pair-wise comparison of the predefined requirements using a linguistic scale. This evaluation was then quantified by calculating the priority weights of criteria, sub-criteria, and alternatives. The best decision alternative is the one with the highest final score. Sensitivity analysis was performed to verify the results of the proposed model. The FEAHP computer approach automated the supplier selection process in a rational, flexible, and agile way, as perceived by the focal company. From this, we hypothesized that using this system can provide helpful insights in choosing the best suppliers in an environment of risk and uncertainty, thereby maximizing supply chain performance.https://www.mdpi.com/2305-6290/5/1/13supplier selection riskmulti-criteria programmingdecision-making systemAHPFuzzy logic |
| spellingShingle | Marcus V. C. Fagundes Bernd Hellingrath Francisco G. M. Freires Supplier Selection Risk: A New Computer-Based Decision-Making System with Fuzzy Extended AHP Logistics supplier selection risk multi-criteria programming decision-making system AHP Fuzzy logic |
| title | Supplier Selection Risk: A New Computer-Based Decision-Making System with Fuzzy Extended AHP |
| title_full | Supplier Selection Risk: A New Computer-Based Decision-Making System with Fuzzy Extended AHP |
| title_fullStr | Supplier Selection Risk: A New Computer-Based Decision-Making System with Fuzzy Extended AHP |
| title_full_unstemmed | Supplier Selection Risk: A New Computer-Based Decision-Making System with Fuzzy Extended AHP |
| title_short | Supplier Selection Risk: A New Computer-Based Decision-Making System with Fuzzy Extended AHP |
| title_sort | supplier selection risk a new computer based decision making system with fuzzy extended ahp |
| topic | supplier selection risk multi-criteria programming decision-making system AHP Fuzzy logic |
| url | https://www.mdpi.com/2305-6290/5/1/13 |
| work_keys_str_mv | AT marcusvcfagundes supplierselectionriskanewcomputerbaseddecisionmakingsystemwithfuzzyextendedahp AT berndhellingrath supplierselectionriskanewcomputerbaseddecisionmakingsystemwithfuzzyextendedahp AT franciscogmfreires supplierselectionriskanewcomputerbaseddecisionmakingsystemwithfuzzyextendedahp |