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A Decision-Aid in Supplier Selection for Entrepreneurs, Using Nested-Design, MODM and FAHP

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  • Mehrdad Agha Mohamad Ali Kermani

    (Shahed University, Iran)

  • Masoud Nasiri

    (Amirkabir University of Technology, Iran)

  • Mohamad Hadi Aliahmadi

    (Amirkabir University of Technology, Iran)

Abstract

Decision making is an important task for entrepreneurs, and proper performance of purchasing has a direct effect on decreasing costs, increasing profitability, and survival of an entrepreneur. Also, entrepreneurs must follow formal rational decision processes as much as possible with fewer costs. To do so, they can use Design of Experiment techniques in combination with decision-aids. In this paper, the authors develop a fuzzy linear multiobjective model for supplier selection. With this model, the decision maker will be able to identify effective criteria with the Nested-Design technique and their relative importance on supplier selection with FAHP. In this regard, fuzzy linear multiobjective programming will be assigned a share of suppliers for supply and demands in the supply chain. The authors expect that using this combination of techniques will have an impressive effect on reducing supplier selection costs.

Suggested Citation

  • Mehrdad Agha Mohamad Ali Kermani & Masoud Nasiri & Mohamad Hadi Aliahmadi, 2010. "A Decision-Aid in Supplier Selection for Entrepreneurs, Using Nested-Design, MODM and FAHP," International Journal of E-Entrepreneurship and Innovation (IJEEI), IGI Global, vol. 1(2), pages 14-29, April.
    • Handle: RePEc:igg:jeei00:v:1:y:2010:i:2:p:14-29
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