Novel Distance Measure in Fuzzy TOPSIS for Supply Chain Strategy Based Supplier Selection

In today’s highly competitive environment, organizations need to evaluate and select suppliers based on their manufacturing strategy. Identification of supply chain strategy of the organization, determination of decision criteria, and methods of supplier selection are appearing to be the most important components in research area in the field of supply chain management. In this paper, evaluation of suppliers is done based on the balanced scorecard framework using new distance measure in fuzzy TOPSIS by considering the supply chain strategy of the manufacturing organization. To take care of vagueness in decision making, trapezoidal fuzzy number is assumed for pairwise comparisons to determine relative weights of perspectives and criteria of supplier selection. Also, linguistic variables specified in terms of trapezoidal fuzzy number are considered for the payoff values of criteria of the suppliers. These fuzzy numbers satisfied the Jensen based inequality. A detailed application of the proposed methodology is illustrated.

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