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Multi-criteria supplier segmentation using a fuzzy preference relations based AHP

Author

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  • Rezaei, Jafar
  • Ortt, Roland

Abstract

One of the strategic activities of a firm is supplier segmentation, whereby a firm creates groups of suppliers to handle them differently. Existing literature provides several typologies of suppliers, each of which uses different dimensions/variables. In this paper, different typologies are combined by distinguishing two overarching dimensions, the capabilities and the willingness of suppliers to cooperate with a particular firm. These dimensions cover almost all the existing supplier segmentation criteria mentioned in existing literature. For each particular situation, these dimensions can be specified using a multi-criteria decision-making method. A methodology is proposed that includes a fuzzy Analytic Hierarchy Process (AHP) which uses fuzzy preference relations to incorporate the ambiguities and uncertainties that usually exist in human judgment. The proposed methodology is used to segment the suppliers of a broiler company. The result is a segmentation of suppliers based on two aggregated dimensions. Finally some strategies to handle different segments are discussed and concluding remarks and suggestions for future research are provided.

Suggested Citation

  • Rezaei, Jafar & Ortt, Roland, 2013. "Multi-criteria supplier segmentation using a fuzzy preference relations based AHP," European Journal of Operational Research, Elsevier, vol. 225(1), pages 75-84.
  • Handle: RePEc:eee:ejores:v:225:y:2013:i:1:p:75-84
    DOI: 10.1016/j.ejor.2012.09.037
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    References listed on IDEAS

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    Cited by:

    1. repec:gam:jsusta:v:9:y:2017:i:11:p:2008-:d:117333 is not listed on IDEAS
    2. Boujelben, Mohamed Ayman, 2017. "A unicriterion analysis based on the PROMETHEE principles for multicriteria ordered clustering," Omega, Elsevier, vol. 69(C), pages 126-140.
    3. Osiro, Lauro & Lima-Junior, Francisco R. & Carpinetti, Luiz Cesar R., 2014. "A fuzzy logic approach to supplier evaluation for development," International Journal of Production Economics, Elsevier, vol. 153(C), pages 95-112.
    4. Hosseininasab, Amin & Ahmadi, Abbas, 2015. "Selecting a supplier portfolio with value, development, and risk consideration," European Journal of Operational Research, Elsevier, vol. 245(1), pages 146-156.
    5. Liu, Fang & Zhang, Wei-Guo & Zhang, Li-Hua, 2014. "Consistency analysis of triangular fuzzy reciprocal preference relations," European Journal of Operational Research, Elsevier, vol. 235(3), pages 718-726.
    6. Yang, Wu-E & Wang, Jian-Qiang, 2013. "Multi-criteria semantic dominance: A linguistic decision aiding technique based on incomplete preference information," European Journal of Operational Research, Elsevier, vol. 231(1), pages 171-181.
    7. Xia, Meimei & Chen, Jian, 2015. "Multi-criteria group decision making based on bilateral agreements," European Journal of Operational Research, Elsevier, vol. 240(3), pages 756-764.
    8. Lima-Junior, Francisco Rodrigues & Carpinetti, Luiz Cesar Ribeiro, 2016. "Combining SCOR® model and fuzzy TOPSIS for supplier evaluation and management," International Journal of Production Economics, Elsevier, vol. 174(C), pages 128-141.
    9. Li, Kevin W. & Wang, Zhou-Jing & Tong, Xiayu, 2016. "Acceptability analysis and priority weight elicitation for interval multiplicative comparison matrices," European Journal of Operational Research, Elsevier, vol. 250(2), pages 628-638.
    10. repec:gam:jsusta:v:9:y:2017:i:5:p:800-:d:98285 is not listed on IDEAS
    11. Kuzu, Kaan & Li, Wanxi, 2016. "Exploring supplier performance risk and the buyer's role using chance-constrained data envelopment analysisAuthor-Name: Ross, Anthony D," European Journal of Operational Research, Elsevier, vol. 250(3), pages 966-978.
    12. repec:eee:ejores:v:267:y:2018:i:2:p:399-414 is not listed on IDEAS
    13. repec:gam:jsusta:v:10:y:2018:i:4:p:1066-:d:139450 is not listed on IDEAS

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