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Comparison of fuzzy logic, AHP, FAHP and hybrid fuzzy AHP for new supplier selection and its performance analysis

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  • Alessio Ishizaka

Abstract

The supplier selection is critical towards the success of a company. This paper compares four different methods to support decision makers in selecting the most appropriate supplier. When using Fuzzy logic, the importance of each criterion gets influenced by the level of decomposition in the hierarchical model. Fuzzy logic does not have the capability to measure the level of consistency in the judgments provided by a decision maker. On the other hand, analytic hierarchy process (AHP) cannot capture subjectivity (or fuzziness) of human judgements as the verbal assessments are converted into crisp values. Fuzzy analytic hierarchy process (FAHP) is a merger of the two methods, Fuzzy logic and the Analytic Hierarchy Process (AHP), which inherits the advantages of both and, therefore, addresses the above mentioned problems. The FAHP method is useful in identifying a suitable supplier and to evaluate its performance as demonstrated in the described case study.

Suggested Citation

  • Alessio Ishizaka, 2014. "Comparison of fuzzy logic, AHP, FAHP and hybrid fuzzy AHP for new supplier selection and its performance analysis," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 9(1/2), pages 1-22.
  • Handle: RePEc:ids:ijisma:v:9:y:2014:i:1/2:p:1-22
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    References listed on IDEAS

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    1. Weber, Charles A. & Current, John R. & Benton, W. C., 1991. "Vendor selection criteria and methods," European Journal of Operational Research, Elsevier, vol. 50(1), pages 2-18, January.
    2. Nakandala, Dilupa & Samaranayake, Premaratne & Lau, H.C.W., 2013. "A fuzzy-based decision support model for monitoring on-time delivery performance: A textile industry case study," European Journal of Operational Research, Elsevier, vol. 225(3), pages 507-517.
    3. Cuneyt Altinoz, 2008. "Supplier selection for industry: a fuzzy rule-based scoring approach with a focus on usability," International Journal of Integrated Supply Management, Inderscience Enterprises Ltd, vol. 4(3/4), pages 303-321.
    4. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    5. Karapetrovic, Stanislav & Rosenbloom, E. S., 1999. "A quality control approach to consistency paradoxes in AHP," European Journal of Operational Research, Elsevier, vol. 119(3), pages 704-718, December.
    6. Alessio Ishizaka & Dieter Balkenborg & Todd Kaplan, 2005. "Influence of aggregation and measurement scale on ranking a compromise alternative in AHP," Discussion Papers 0506, University of Exeter, Department of Economics.
    7. Ho, William, 2008. "Integrated analytic hierarchy process and its applications - A literature review," European Journal of Operational Research, Elsevier, vol. 186(1), pages 211-228, April.
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    Cited by:

    1. Toni Lupo & Seyyed Ali Delbari, 2018. "A knowledge-based exploratory framework to study quality of Italian mobile telecommunication services," Telecommunication Systems: Modelling, Analysis, Design and Management, Springer, vol. 68(1), pages 129-144, May.

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