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Keywords: Supplier selection, the process of nding the right suppliers who are able to provide the buyer with the
Intuitionistic fuzzy set right quality products and/or services at the right price, at the right time and in the right quantities, is one
Supplier selection of the most critical activities for establishing an effective supply chain. On the other hand, it is a hard
TOPSIS method problem since supplier selection is typically a multi criteria group decision-making problem involving
Group decision making
several conicting criteria on which decision makers knowledge is usually vague and imprecise. In this
study, TOPSIS method combined with intuitionistic fuzzy set is proposed to select appropriate supplier in
group decision making environment. Intuitionistic fuzzy weighted averaging (IFWA) operator is utilized
to aggregate individual opinions of decision makers for rating the importance of criteria and alternatives.
Finally, a numerical example for supplier selection is given to illustrate application of intuitionistic fuzzy
TOPSIS method.
2009 Elsevier Ltd. All rights reserved.
1. Introduction de Boer, Labro, and Morlacchi (2001) identied four stages for sup-
plier selection including denition of the problem, formulation of
Supply Chain Management (SCM) has received recently consid- criteria, qualication, and nal selection, respectively. They re-
erable attention in both academia and industry. The major aims of viewed and classied MCDM approaches for supplier selection.
SCM are to reduce supply chain (SC) risk, reduce production costs, Several methodologies have been proposed for the supplier
maximize revenue, improve customer service, optimize inventory selection problem. The systematic analysis for supplier selection
levels, business processes, and cycle times, and resulting in in- includes categorical method, weighted point method (Timmerman,
creased competitiveness, customer satisfaction and protability 1986; Zenz, 1981), matrix approach (Gregory, 1986), vendor per-
(Chou & Chang, 2008; Ha & Krishnan, 2008; Heizer & Render, formance matrix approach (Soukup, 1987) vendor prole analysis
2004; Monczka, Trent, & Handeld, 2001; Simchi-Levi, Kaminsky, (VPA) (Thompson, 1990), analytic hierarchy process (AHP) (Barbar-
& Simchi-Levi, 2003; Stevenson, 2005). osoglu & Yazgac, 1997; Narasimhan, 1983; Nydick & Hill, 1992),
One of the important activities for SC success is an effective pur- analytic network process (ANP) (Sarkis & Talluri, 2000), mathemat-
chasing function (Cakravastia & Takahashi, 2004; Chou & Chang, ical programming (Chaudhry, Forst, & Zydiak, 1993; Pan, 1989;
2008; Giunipero & Brand, 1996; Porter & Millar, 1985). The pur- Rosenthal, Zydiak, & Chaudhry, 1995; Sadrian & Yoon, 1994; We-
chasing function has received a great deal of attention in the ber & Current, 1993) and multiple objective programming (MOP)
SCM due to factors such as globalization, increased value added (Buffa & Jackson, 1983; Feng, Wang, & Wang, 2001; Ghoudsypour
in supply and accelerated technological change. The purchasing & OBrien, 1998; Sharma, Benton, & Srivastava, 1989; Weber & Ell-
function involves buying the raw materials, supplies and compo- ram, 1992).
nents for the organization. The most important activity of the pur- Most of these methods do not seem to address the complex and
chasing function is the selection of appropriate supplier, since it unstructured nature and context of many present day purchasing
brings signicant savings for the organization (Haq & Kannan, decisions (de Boer, Van der Wegen, & Telgen, 1998). In many exist-
2006). ing decision models in the literature, only quantitative criteria
One of the well known studies on supplier selection belongs to have been considered for supplier selection. Several inuence fac-
Dickson (1966) who identied 23 important evaluation criteria for tors are often not taken into account in the decision-making pro-
supplier selection. Weber, Current, and Benton (1991) reviewed cess, such as incomplete information, additional qualitative
and classied 74 articles addressed the supplier selection problem. criteria and imprecision preferences (Chen, Lin, & Huang, 2006;
Zhang, Zhang, Lai, & Lu, 2009). Therefore, fuzzy set theory (FST)
* Corresponding author. Tel.: +90 312 213 32 33; fax: +90 312 212 00 59. has been applied to supplier selection recently. Li, Fun, and Hung
E-mail address: feboran@gazi.edu.tr (F.E. Boran). (1997) and Holt (1998) discussed the application of FST in supplier
0957-4174/$ - see front matter 2009 Elsevier Ltd. All rights reserved.
doi:10.1016/j.eswa.2009.03.039
11364 F.E. Boran et al. / Expert Systems with Applications 36 (2009) 1136311368
2007b, 2007c; Xu & Yager, 2006, 2008) and pattern recognition " #
Yl k Y l k Y l k l
Y k
(Hung & Yang, 2004; Li & Cheng, 2002; Liang & Shi, 2003; Vlachos k k k k k k k k
1 1 lij ; mij ; 1 lij mij
& Sergiadis, 2007; Wang & Xin, 2005; Zhang & Fu, 2006). k1 k1 k1 k1
Intuitionistic fuzzy set A in a nite set X can be written as:
6
A hx; lA x; mA xijx 2 X
Here r ij lAi xj ; mAi xj ; pAi xj i 1; 2 . . . ; m; j 1; 2; . . . ; n.
where lA(x), vA(x): X ? [0, 1] are membership function and non- The aggregated intuitionistic fuzzy decision matrix can be de-
membership function, respectively, such that ned as follows:
2 3
lA1 x1 ; mA1 x1 ; pA1 x1 lA1 x2 ; mA1 x2 ; pA1 x2 lA1 xn ; mA1 xn ; pA1 xn
6 7
6 7
6 l x1 ; mA x1 ; pA x1 lA2 x2 ; mA2 x2 ; pA2 x2 lA2 xn ; mA2 xn ; pA2 xn 7
6 A2 2 2 7
R6 7
6 . . . . 7
6 .. .. .. .. 7
4 5
lAm x1 ; mAm x1 ; pAm x1 lAm x2 ; mAm x2 ; pAm x2 lAm xn ; mAm xn ; pAm xn
F.E. Boran et al. / Expert Systems with Applications 36 (2009) 1136311368 11365
2 3 2 3
r 11 r 12 r13 . . . r 1m r011 r 012 r 013 . . . r 01j
6 7 6 7
6 r 21 r 22 r23 . . . r 2m 7 6 r0 r 022 r 023 . . . r 02j 7
6 7 6 21 7
6 . . . r 3m 7 6 7
R 6 r 31 r 32 r33 7 6 0 0 7
6 . .. 7 6r r 032 r 033 . . . r 3j 7
6 . .. .. .. 7 R0 6 31 7
4 . . . . . 5 6 7
6 . .. .. .. .. 7
r n1 r n2 r n3 . . . r nm 6 ..
6 . . . . 7 7
4 5
Step 3. Determine the weights of criteria. r 0i1 r 0i2 r 0i3 . . . r 0ij
All criteria may not be assumed to be equal importance. W rep-
resents a set of grades of importance. In order to obtain W, all the r0ij l0ij ; m0ij ; p0ij lAi W xj ; mAi W xj ; pAi W xj is an element of the
individual decision maker opinions for the importance of each cri- aggregated weighted intuitionistic fuzzy decision matrix.
teria need to hbe fused. i Step 5. Obtain intuitionistic fuzzy positive-ideal solution and
k k k k
Let wj lj ; mj ; pj be an intuitionistic fuzzy number as- intuitionistic fuzzy negative-ideal solution.
signed to criterion Xj by the kth decision maker. Then the weights Let J1 and J2 be benet criteria and cost criteria, respectively. A*
of the criteria are calculated by using IFWA operator: is intuitionistic fuzzy positive-ideal solution and A is intuitionistic
1 2 l fuzzy negative-ideal solution. Then A* and A are obtained as:
wj IFWAk wj ; wj ; . . . ; wj
1 2 3 l A lA W xj ; mA W xj and A lA W xj ; mA W xj 10
k1 wj k2 wj k3 wj kl wj
" # where
Yl k Y l kk Yl k l
Y k
k k k k k k
1 1 lj ; mk
j ; 1 l j m j
k1 k1 k1 k1 lA W xj max lAi W xj jj 2 J1 ; min lAi W xj jj 2 J2 11
i i
7
mA W xj min mAi W xj jj 2 J1 ; max mAi W xj jj 2 J2 12
W w1 ; w2 ; w3 ; . . . ; wj i i
Step 4. Construct aggregated weighted intuitionistic fuzzy deci- lA W xj min lAi W xj jj 2 J1 ; max lAi W xj jj 2 J2 13
i i
sion matrix.
After the weights of criteria (W) and the aggregated intuitionis-
tic fuzzy decision matrix are determined, the aggregated weighted mA W xj max mAi W xj jj 2 J1 ; min mAi W xj jj 2 J2 14
i i
intuitionistic fuzzy decision matrix is constructed according to the
following denition (Atanassov, 1986): Step 6. Calculate the separation measures.
n o In order to measure separation between alternatives on intui-
R W hx; lAi x lW x; mAi x mW x mAi x mW xijx 2 X tionistic fuzzy set, distance measures proposed by Atanassov
8 (1999), Szmidt and Kacprzyk (2000) and Grzegorzewski (2004),
and including the generalizations of Hamming distance, Euclidean
distance and their normalized distance measures can be used.
pAi W x 1 mAi x mW x lAi x lW x mAi x mW x 9 After selecting the distance measure, the separation measures,
Then the aggregated weighted intuitionistic fuzzy decision matrix Si and Si , of each alternative from intuitionistic fuzzy posi-
can be dened as follows:
2 3
l x1 ; mA1 W x1 ; pA1 W x1 lA1 W x2 ; mA1 W x2 ; pA1 W x2 lA1 W xn ; mA1 W xn ; pA1 W xn
6 A1 W 7
6 7
6 l x1 ; mA W x1 ; pA W x1 lA2 W x2 ; mA2 W x2 ; pA2 W x2 lA2 W xn ; mA2 W xn ; pA2 W xn 7
0 6 A2 W 2 2 7
R 6 7
6 .. .. .. .. 7
6 . . . . 7
4 5
lAm W x1 ; mAm W x1 ; pAm W x1 lAm W x2 ; mAm W x2 ; pAm W x2 lAm W xn ; mAm W xn ; pAm W xn
Table 1
The importance of decision makers and their weights.
tive-ideal and negative-ideal solutions are calculated. In this pa- The linguistic terms shown in Table 3 are used to rate each
per, we use normalized Euclidean distance (Szmidt & Kacprzyk, alternative supplier with respect to each criterion by three decision
2000) makers.
v
u X
u1 n 2
S t lAi W xj lA W xj mAi W xj mA W xj 2 pAi W xj pA W xj 2 15
2n j1
v
u X
u1 n 2
S t
lAi W xj lA W xj mAi W xj mA W xj 2 pAi W xj pA W xj 2 16
2n j1
The relative closeness coefcient of an alternative Ai with re- Criteria Suppliers Decision makers
spect to the intuitionistic fuzzy positive-ideal solution A* is dened DM1 DM2 DM3
as follows:
X1 A1 G VG G
A2 MG G F
Si A3 VVG VG VG
C i where 0 6 C i 6 1 17 A4 MG G G
S i Si
A5 F MG MG
X2 A1 MG G MG
A2 F MG G
Step 8. Rank the alternatives.
A3 VG G VG
After the relative closeness coefcient of each alternative is A4 F F MG
determined, alternatives are ranked according to descending order A5 MB F F
of C i s. X3 A1 VG G VG
A2 G MG MG
A3 VG VG G
A4 VG G G
4. Numerical example
A5 G G MG
X4 A1 H H H
An automotive company is desired to select the most appropri-
A2 MH M MH
ate supplier for one of the key elements in its manufacturing A3 VH VH H
process. After pre-evaluation, ve suppliers have remained as A4 H MH MH
alternatives for further evaluation. In order to evaluate alternative A5 M MH M
suppliers, a committee composed of three decision makers has
been formed. Four criteria are considered as:
Step 5. Obtain intuitionistic fuzzy positive-ideal solution and opinions. Therefore, in future, intuitionistic fuzzy set can be used
intuitionistic fuzzy negative-ideal solution. for dealing with uncertainty in multi-criteria decision-making
Product quality, relationship closeness and delivery perfor- problems such as project selection, manufacturing systems, per-
mance are benet criteria J1 = {X1, X2, X3} and price is cost criteria sonnel selection, and many other areas of management decision
J2 = {X4}. Then intuitionistic fuzzy positive-ideal solution and intui- problems.
tionistic fuzzy negative-ideal solution were obtained as follows:
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