APPLICATION OF AHP AND FUZZY MULTI OBJECTIVE LINEAR MODEL FOR VENDOR SELECTION IN SUPPLY CHAIN

Abstract

Supply chain management involves the flows of material, information and finance in a network consisting of customers, suppliers, manufacturers, and distributors. It begins with raw materials, Continues through internal operations, ends with distribution of finished goods. In the ever-changing world, vendor selection is useful in supply chain management. Vendor selection is one of the most important activities of purchasing departments. This importance is increased even more by new strategies in a supply chain; because of the key role vendors perform in terms of quality, costs and services, which affect the outcome in the buyer’s company. Vendor selection is a multiple criteria decision-making problem in which the objectives are not equally important. In real cases, many input data are not known precisely for decision-making. Here a fuzzy multiobjective model is used for vendor selection in order to assign different weights to various criteria. This formulation can effectively handle th...