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A Hybrid Model Based on SEM and Fuzzy TOPSIS for Supplier Selection

Author

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  • Hongyi Sun

    (Department of Advanced Design and Systems Engineering, City University of Hong Kong, Hong Kong 999017, China)

  • Bingqian Zhang

    (Department of Advanced Design and Systems Engineering, City University of Hong Kong, Hong Kong 999017, China)

  • Wenbin Ni

    (School of Business Administration, Zhejiang University of Finance & Economics, Hangzhou 310018, China)

Abstract

How to select the right suppliers has become a crucial strategic decision for manufacturing companies facing various performance measures. This study proposed a hybrid selection model integrating factor analysis, structural equation modeling (SEM), and the fuzzy Technique for Order Performance by Similarity to Ideal Solution to (TOPSIS) design a supplier selection model. The study distilled 70 original selection criteria from the relevant literature and identified eight main influencing factors based on factor analysis. The relevance of factors was evaluated by SEM and the performance of suppliers assessed by fuzzy TOPSIS. The model was applied in a manufacturing company in China to verify its practical significance. By combining different methods, the model can select relevant and important supplier selection criteria and include unquantifiable, incomplete, and vague information in the decision model. The hybrid model merges the advantages of each method and takes into account of uncertainty associated with supplier selection process.

Suggested Citation

  • Hongyi Sun & Bingqian Zhang & Wenbin Ni, 2022. "A Hybrid Model Based on SEM and Fuzzy TOPSIS for Supplier Selection," Mathematics, MDPI, vol. 10(19), pages 1-19, September.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:19:p:3505-:d:925427
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    References listed on IDEAS

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    5. Wetzstein, Anton & Hartmann, Evi & Benton jr., W.C. & Hohenstein, Nils-Ole, 2016. "A systematic assessment of supplier selection literature – State-of-the-art and future scope," International Journal of Production Economics, Elsevier, vol. 182(C), pages 304-323.
    6. Dash, Ganesh & Paul, Justin, 2021. "CB-SEM vs PLS-SEM methods for research in social sciences and technology forecasting," Technological Forecasting and Social Change, Elsevier, vol. 173(C).
    7. Şengül, Ümran & Eren, Miraç & Eslamian Shiraz, Seyedhadi & Gezder, Volkan & Şengül, Ahmet Bilal, 2015. "Fuzzy TOPSIS method for ranking renewable energy supply systems in Turkey," Renewable Energy, Elsevier, vol. 75(C), pages 617-625.
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    Cited by:

    1. Zhou, Fang & Chen, Ting-Yu, 2023. "A hybrid group decision-making approach involving Pythagorean fuzzy uncertainty for green supplier selection," International Journal of Production Economics, Elsevier, vol. 261(C).

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