Modeling Supplier Selection Using Multi-Criterion Fuzzy Grouping Genetic Algorithm

Supplier evaluation and selection are one of the most important activities in various industry disciplines. However, evaluating suppliers in a fuzzy and multi-criterion environment is a complex responsibility. In some cases, the tasks to be done by the suppliers have due dates and precedence constraints, for example, in construction subcontractor selection. In most industry settings, this activity involves conflicting management goals, multiple criteria, and constraints. Price, lead time, quality, and number of suppliers or vendors selected are some of the conflicting criteria that have to be optimized simultaneously. Such situations demand advanced efficient, flexible, and interactive decision support systems that can handle fuzzy variable. This chapter presents a fuzzy multi-criterion modeling approach for handling supplier selection problems from a fuzzy grouping genetic algorithm perspective (FGGA). The multi-criterion FGGA uses fuzzy evaluation methods to model multiple criteria by converting management goals and aspirations into normalized fuzzy membership functions. Illustrations are provided based on typical examples such as subcontractor selection.