A hybrid intelligent fuzzy predictive model with simulation for supplier evaluation and selection

Supplier evaluation and selection constitutes a central issue in supply chain management.We develop a novel multi-criteria decision model applicable to supplier evaluation processes.ANFIS is used to determine the most influential criteria on the suppliers' performance.Multi-layer perceptron is then used to rank the suppliers' performance based on these criteria.A case study is used to illustrate the accuracy of several variants of the model in prediction. Supplier evaluation and selection constitutes a central issue in supply chain management (SCM). However, the data on which to base the corresponding choices in real life problems are often imprecise or vague, which has led to the introduction of fuzzy approaches. Predictive intelligent-based techniques, such as Artificial Neural Network (ANN) and Adaptive Neuro Fuzzy Inference System (ANFIS), have been recently applied in different research fields to model fuzzy multi-criteria decision processes where the understanding and learning of the relationships between the input and output data are the key to select suitable solutions. In this paper, a hybrid ANFIS-ANN model is proposed to assist managers in their supplier evaluation process. After aggregating the data set through the Analytical Hierarchy Process (AHP), the most influential criteria on the suppliers' performance are determined by ANFIS. Then, Multi-Layer Perceptron (MLP) is used to predict and rank the suppliers' performance based on the most effective criteria. A case study is presented to illustrate the main steps of the model and show its accuracy in prediction. A battery of parametric tests and sensitivity analyses has been implemented to evaluate the overall performance of several models based on different effective criteria combinations.

[1]  Esmaeil Hadavandi,et al.  Hybridization of evolutionary Levenberg-Marquardt neural networks and data pre-processing for stock market prediction , 2012, Knowl. Based Syst..

[2]  J.-S.R. Jang,et al.  Input selection for ANFIS learning , 1996, Proceedings of IEEE 5th International Fuzzy Systems.

[3]  Ashraf Labib,et al.  A supplier selection model: a comparison of fuzzy logic and the analytic hierarchy process , 2011 .

[4]  Amir Hossein Gandomi,et al.  Genetic-based modeling of uplift capacity of suction caissons , 2011, Expert Syst. Appl..

[5]  L. D. Boer,et al.  A review of methods supporting supplier selection , 2001 .

[6]  Raphael Kaplinsky,et al.  Putting supply chain learning into practice , 2003 .

[7]  R. Passaro,et al.  AHP-based approaches for supplier evaluation: Problems and perspectives , 2012 .

[8]  Anthony Hall,et al.  Seven myths of formal methods , 1990, IEEE Software.

[9]  Jacques Houssiaux Le concept de « quasi-intégration » et le rôle des sous-traitants dans l'industrie , 1957 .

[10]  Banri Asanuma Manufacturer-supplier relationships in Japan and the concept of relation-specific skill , 1989 .

[11]  Leyla Cakir,et al.  Polynomials, radial basis functions and multilayer perceptron neural network methods in local geoid determination with GPS/levelling , 2014 .

[12]  Giuseppe Zollo,et al.  Knowledge elicitation and mapping in the design of a decision support system for the evaluation of suppliers’ competencies , 2015 .

[13]  Massimo G. Colombo,et al.  Organizing vertical markets , 1998 .

[14]  Elham Sadat Mostafavi,et al.  A novel machine learning approach for estimation of electricity demand: An empirical evidence from Thailand , 2013 .

[15]  Betul Bektas Ekici,et al.  Prediction of building energy needs in early stage of design by using ANFIS , 2011, Expert Syst. Appl..

[16]  M. Aoki Information, Incentives and Bargaining in the Japanese Economy: A Microtheory of the Japanese Economy , 1988 .

[17]  Desheng Dash Wu,et al.  Using DEA-neural network approach to evaluate branch efficiency of a large Canadian bank , 2006, Expert Syst. Appl..

[18]  B. Klein,et al.  Vertical Integration, Appropriable Rents, and the Competitive Contracting Process , 1978, The Journal of Law and Economics.

[19]  W. C. Benton,et al.  Vendor selection criteria and methods , 1991 .

[20]  Emilio Esposito,et al.  Applying supplier selection methodologies in a multi-stakeholder environment: A case study and a critical assessment , 2016, Expert Syst. Appl..

[21]  Atakan Yücel,et al.  An integrated fuzzy-lp approach for a supplier selection problem in supply chain management , 2009, Expert Syst. Appl..

[22]  James Nga-Kwok Liu,et al.  Application of decision-making techniques in supplier selection: A systematic review of literature , 2013, Expert Syst. Appl..

[23]  Amir Hossein Gandomi,et al.  Permanent deformation analysis of asphalt mixtures using soft computing techniques , 2011, Expert Syst. Appl..

[24]  Jian-Da Wu,et al.  An expert system of price forecasting for used cars using adaptive neuro-fuzzy inference , 2009, Expert Syst. Appl..

[25]  Jonathan P. Bowen,et al.  Ten Commandments of Formal Methods... Ten Years On , 2012, Conquering Complexity.

[26]  E. Hartmann,et al.  Research on the phenomenon of supply chain resilience , 2015 .

[27]  A. Gandomi,et al.  Empirical modeling of plate load test moduli of soil via gene expression programming , 2011 .

[28]  Amydee M. Fawcett,et al.  Trust and relational embeddedness: Exploring a paradox of trust pattern development in key supplier relationships , 2013 .

[29]  W. B. Lee,et al.  Design of an intelligent supplier relationship management system: a hybrid case based neural network approach , 2003, Expert Syst. Appl..

[30]  Gülçin Büyüközkan,et al.  Evaluation of the green supply chain management practices: a fuzzy ANP approach , 2012 .

[31]  Shinn-Ying Ho,et al.  Accurate modeling and prediction of surface roughness by computer vision in turning operations using an adaptive neuro-fuzzy inference system , 2002 .

[32]  Shaila Apte,et al.  Adaptive Neuro-fuzzy Inference System with Subtractive Clustering: A Model to Predict Fiber and Yarn Relationship , 2010 .

[33]  Ali Azadeh,et al.  An Integrated Artificial Neural Network Fuzzy C-Means-Normalization Algorithm for performance assessment of decision-making units: The cases of auto industry and power plant , 2011, Comput. Ind. Eng..

[34]  Amir Hossein Alavi,et al.  A robust data mining approach for formulation of geotechnical engineering systems , 2011 .

[35]  Atakan Yücel,et al.  An approach based on ANFIS input selection and modeling for supplier selection problem , 2011, Expert Syst. Appl..

[36]  Davood Golmohammadi,et al.  Neural network application for fuzzy multi-criteria decision making problems , 2011 .

[37]  Rose Opengart,et al.  Supply chain management and Learning Organization: a merging of literatures , 2015 .

[38]  K. L. Choya,et al.  Design of an intelligent supplier relationship management system : a hybrid case based neural network approach , 2015 .

[39]  Elham Sadat Mostafavi,et al.  Gene expression programming as a basis for new generation of electricity demand prediction models , 2014, Comput. Ind. Eng..

[40]  Ramayya Krishnan,et al.  A hybrid approach to supplier selection for the maintenance of a competitive supply chain , 2008, Expert Syst. Appl..

[41]  Amir Hossein Gandomi,et al.  Applications of Computational Intelligence in Behavior Simulation of Concrete Materials , 2011, Computational Optimization and Applications in Engineering and Industry.

[42]  T. Comes,et al.  A critical review on supply chain risk – Definition, measure and modeling ☆ , 2015 .

[43]  Gwo-Hshiung Tzeng,et al.  Compromise solution by MCDM methods: A comparative analysis of VIKOR and TOPSIS , 2004, Eur. J. Oper. Res..

[44]  L. V. D. Wegen,et al.  Practice and promise of formal supplier selection: a study of four empirical cases , 2003 .

[45]  S. Meysam Mousavi,et al.  A locally linear neuro-fuzzy model for supplier selection in cosmetics industry , 2012 .

[46]  G. Stevens,et al.  Integrating the Supply Chain … 25 years on , 2016 .

[47]  P. Samouel,et al.  Supply management capabilities, routine bundles and their impact on firm performance , 2015 .

[48]  Chao Ou-Yang,et al.  A neural networks approach for forecasting the supplier's bid prices in supplier selection negotiation process , 2009, Expert Syst. Appl..

[49]  Jafar Rezaei,et al.  Supplier segmentation using fuzzy logic , 2013 .

[50]  Emilio Esposito,et al.  The evolution of Italian subcontracting firms: empirical evidence , 1994 .

[51]  T. Saaty,et al.  The Analytic Hierarchy Process , 1985 .

[52]  M. Frohlich,et al.  Arcs of integration: an international study of supply chain strategies , 2001 .

[53]  A. Tropsha,et al.  Beware of q 2 , 2002 .

[54]  K. Blois,et al.  Vertical Quasi-Integration , 1972 .

[55]  Emilio Esposito,et al.  The evolution of supply chain relationships: An interpretative framework based on the Italian inter-industry experience , 2009 .

[56]  M. Khurrum S. Bhutta,et al.  Supplier Selection Problem: Methodology Literature Review , 2003 .

[57]  A. Tropsha,et al.  Beware of q2! , 2002, Journal of molecular graphics & modelling.

[58]  Gülçin Büyüközkan,et al.  A novel hybrid MCDM approach based on fuzzy DEMATEL, fuzzy ANP and fuzzy TOPSIS to evaluate green suppliers , 2012, Expert Syst. Appl..

[59]  Leif Jarle Gressgård,et al.  Knowledge exchange and learning from failures in distributed environments: The role of contractor relationship management and work characteristics , 2015, Reliab. Eng. Syst. Saf..

[60]  Desheng Dash Wu,et al.  Supplier selection: A hybrid model using DEA, decision tree and neural network , 2009, Expert Syst. Appl..

[61]  P. Parthiban,et al.  Vendor selection problem: a multi-criteria approach based on strategic decisions , 2013 .

[62]  D. Ross Jeffery,et al.  An empirical research agenda for understanding formal methods productivity , 2015, Inf. Softw. Technol..

[63]  Jyh-Shing Roger Jang,et al.  ANFIS: adaptive-network-based fuzzy inference system , 1993, IEEE Trans. Syst. Man Cybern..

[64]  G. N. Smith Probability and statistics in civil engineering: An introduction , 1986 .