An Integrated Fuzzy DEA and Fuzzy Goal Programming Approach for Selecting Suppliers

Supplier evaluation and selection is a critical decision process for companies in order to gain competitive advantage. Decision models focusing on risk minimization have recently received increasing attention in supplier selection literature. In this paper, risk factors, which incorporate qualitative as well as quantitative data, are employed in fuzzy data envelopment analysis for obtaining efficient supplier alternatives. Linguistic variables are used to quantify the impreciseness inherent in risk criteria. A fuzzy goal programming model is formulated to determine order quantities allocated to the appropriate suppliers determined by fuzzy data envelopment analysis. Decision makers’ desired achievement degrees for fuzzy purchasing goals are aggregated using the average operator. A supplier selection problem is presented to illustrate the application of the proposed fuzzy group decision making approach based on fuzzy data envelopment analysis and fuzzy goal programming.

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