Multi-criteria decision making for supplier selection using fuzzy AHP approach
Abstract
Purpose
The purpose of this paper is to propose a multi-criteria supplier selection model using fuzzy analytical hierarchy process (FAHP) approach for a leading automobile company in India.
Design/methodology/approach
FAHP approach followed by a sensitivity analysis has been used.
Findings
In this study, a FAHP-based supplier selection model is proposed to provide useful insights in choosing appropriate suppliers in dynamic situations in order to enhance long-term relationship with them.
Practical implications
This study proposes a supplier selection model for an automobile industry which often faces heterogeneous supply environments. This model may have a high acceptability where a large number of suppliers are available to supply the materials or provide the services. As analytic hierarchy process is the most widely used methodology for supplier selection, however, it becomes less efficient in case of inconsistencies observed in the data. However a FAHP-based approach may overcome this difficulty.
Originality/value
It contributes to supplier selection process and points out the importance of supplier selection problem, especially in the context of multi-criteria decision-making in Indian scenario.
Keywords
Acknowledgements
The authors thank anonymous referees for their constructive comments which helped authors to revise this paper significantly over its original version. The authors are also grateful to Dr V.K. Soni, Maulana Azad National Institute of Technology, Bhopal (MP), India for his valuable inputs.
Citation
Yadav, V. and Sharma, M.K. (2015), "Multi-criteria decision making for supplier selection using fuzzy AHP approach", Benchmarking: An International Journal, Vol. 22 No. 6, pp. 1158-1174. https://doi.org/10.1108/BIJ-04-2014-0036
Publisher
:Emerald Group Publishing Limited
Copyright © 2015, Emerald Group Publishing Limited