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Modeling, Scheduling, and Control in Advanced Production Systems - Research Article

Advances in Mechanical Engineering


2019, Vol. 11(2) 1–19
Ó The Author(s) 2019
Comparison and evaluation of DOI: 10.1177/1687814018822926
journals.sagepub.com/home/ade
multi-criteria supplier selection
approaches: A case study

Mohammed Alkahtani1,2 , Abdulrahman Al-Ahmari1,2 ,


Husam Kaid1 and Mohammed Sonboa1

Abstract
Supplier selection problem has a major regard in terms of the performance of supply chain of an organization. Several
various approaches were proposed, including the analytic hierarchy process, fuzzy analytic hierarchy process, and fuzzy
technique for order of preference by similarity to ideal solution (TOPSIS). However, no comparative researches of these
three approaches related to the supplier selection problem have been carried out. Therefore, this article proposes a
methodology to evaluate the selected approaches. The evaluation was conducted based on the following factors: agility
during the decision process, computational complexity, number of criteria and alternative suppliers, and adequacy in sup-
porting a group decision. The methodology is implemented in X company. The results show that each approach is con-
venient to the supplier evaluation and selection problem, particularly toward the support of group decision-making and
uncertainty modeling. In terms of computational complexity, analytic hierarchy process performs better than fuzzy
TOPSIS and fuzzy analytic hierarchy process. Moreover, the fuzzy TOPSIS approach is better suited to the supplier eva-
luation and selection in terms of agility during the decision process, the number of criteria and alternative suppliers, and
the adequacy in supporting a group decision.

Keywords
Multi-criteria decision-making, supplier evaluation, supplier selection, analytic hierarchy process, technique for order of
preference by similarity to ideal solution, fuzzy

Date received: 27 February 2018; accepted: 11 December 2018

Handling Editor: Wu Naiqi

Introduction noteworthy investment funds for the association. The


issue of supplier choice can be essentially characterized
Supply chain management (SCM) is a methodology for as picking the correct supplier(s) for certain items or
incorporating the agent elements of an association in material gatherings. In many organizations, the cost of
order to make a general arrangement for the associa-
tion, while fulfilling the administration approach and
maintaining the greatest conceivable reduction in cost 1
Department of Industrial Engineering, College of Engineering, King Saud
based on an unreliable understanding of the conditions University, Riyadh, Saudi Arabia
of a rival association. Purchasing commands a critical 2
Raytheon Chair for Systems Engineering (RCSE Chair), Advanced
position in many associations because the acquired Manufacturing Institute, King Saud University, Riyadh, Saudi Arabia
parts, segments, and supplies commonly make up
Corresponding author:
40%–60% of the offers of its items. The most essential Mohammed Alkahtani, Department of Industrial Engineering, College of
procedure of the purchasing function is the productive Engineering, King Saud University, Riyadh 11421, Saudi Arabia.
choice of suppliers, because doing so brings about Email: moalkahtani@ksu.edu.sa

Creative Commons CC BY: This article is distributed under the terms of the Creative Commons Attribution 4.0 License
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open-access-at-sage).
2 Advances in Mechanical Engineering

crude materials and parts can represent up to 70% of approaches’’ introduces the comparative analyses of
the aggregate costs. In this way, keeping in mind the the proposed approaches. Finally, some concluding
end goal of decreasing the costs identified with supply remarks and areas of future work are provided in sec-
acquisition, organizations should work with suppliers tion ‘‘Conclusion and future work.’’
that give the required material speedier, less expensive,
and superior to contenders. Supplier determination uti- Literature review
lizes an expansive correlation of suppliers with a typical
Two particular significance issues are considered to
arrangement of criteria and measures. It can be seen as
select the best supplier. One is what criteria should be
a multi-criteria issue, which incorporates both quantita-
used and the other is regarding the method used to
tive and subjective criteria. Numerous criteria have
compare suppliers. Weber et al.12 demonstrated that
been utilized as a part of the supplier selection issue.
the selection of a supplier is complicated by the differ-
With a specific end goal of choosing the best supplier,
ent criteria that should be considered. Meanwhile, vari-
two inquiries should be made. The first is what criteria
ous approaches can be utilized to do a selection.
will be utilized as a part of a supplier assessment? The
Analyses of the two cases of supplier evaluation and
second is what are the evaluation approaches that will
selection have attracted the interest of much academics
be utilized to choose a supplier?
and purchasers since the 1960s.
Several articles propose the use of different evaluation
multi-criteria decision-making (MCDM) approaches to
the supplier selection problem. These approaches are Criteria in supplier selection
analytic hierarchy process (AHP),1 technique for Chen et al.13 recommended that there are important
order of preference by similarity to ideal solution variations in terms of financial standing and techno-
(TOPSIS),2 ViseKriterijumska Optimizacija I logical capability among auto assemblers, indirect
Kompromisno Resenje (VIKOR),3 elimination and suppliers, and direct suppliers, but no diversity in
choice translating reality (ELECTRE),4 preference delivery, flexibility, relationship, reliability, quality,
ranking organization method for enrichment evalua- and price. In most of the researches listed, the major
tion (PROMETHEE),5 data envelopment analysis criteria for supplier evaluation and selection are the
(DEA),6 simple additive weighting (SAW),7 simple quality, service, cost, delivery, relationship, capacity,
multi-attribute rating technique (SMART),8 case- customer requirements, and flexibility. Studies pub-
based reasoning (CBR),9 and multi-attribute utility lished from 1995 to 2005 focused on quality, finance,
theory (MAUT),10 approaches based on fuzzy set the- service, delivery, relationships, technology, facility,
ory,11 and so on. management, and products. Environmental escalated
It is obvious from the literature review that earlier in 2007, becoming primary supplier evaluation and
studies have mostly focused on MCDM approaches selection criteria. Risk factors involved in supplier
such as AHP, fuzzy AHP, and fuzzy TOPSIS for sup- selection also gained prominence in 2007. Benefits,
plier evaluation. However, it is necessary to do a com- opportunities, communication, and risks (BOCR)
parative assessment of various approaches with regard constitute the tools needful for gauging a supplier
to supplier selection. To overcome this gap, the aim of evaluation and selection.
this article is to implement a comparative analysis of
such methods conducted to the supplier evaluation and
selection problem. A comparison of the methods will
Supplier selection approaches
then be made considering the following factors: agility Weber et al.12 classified quantitative methods to sup-
during the decision process, computational complexity, plier evaluation and selection into four different
adequacy with regard to changes in alternatives or cri- categories: linear weight models, mathematical pro-
teria, agility in terms of the decision process, computa- gramming models, statistical/probabilistic methods,
tional complexity, the number of criteria and and integrated methods. Their researches showed that
alternative suppliers applied, and the adequacy in sup- with linear weighted models, a weight is typically
porting group decision-making. assigned on each criterion (typically determined subjec-
The remainder of this article is structured as follows. tively), where the total score for each supplier is
In section ‘‘Literature review,’’ a literature review of the summed based on the performance of each criterion
supplier selection criteria and approaches is described. multiplied by the weight. Mathematical programming
Section ‘‘Methodology’’ details the methodology models involve linear, mixed integer, and goal pro-
applied in this article as well as some concepts related gramming. Statistical approaches involve methods such
to fuzzy set theory and the AHP, fuzzy AHP, and fuzzy as a stochastic economic order quantity (EOQ) model
TOPSIS approaches. Section ‘‘Case study’’ provides the and cluster analysis. Other methods such the fuzzy set
results of applying the proposed approaches to a real theory, integrated methods, and activity-based costing
case study. Section ‘‘Comparative analysis of proposed are used. AHP is one of the approaches used under a
Alkahtani et al. 3

linear weighted model. AHP is a MCDM approach conducted a multi-objective optimization model to deal
that supplies a scope that can work using multiple cri- with the supplier selection process and optimized the
teria. Numerous studies have been carried out in the number of products in a closed-loop supply chain net-
area of supplier selection using AHP.14–22 Interpretive work. The paper by Bohner and Minner42 synchro-
structural modeling (ISM) is also another technique, nized the problem of supplier selection; their study was
which was implemented for supplier evaluation and formulated as a mixed-integer linear problem, which is
selection. The objective of this technique is to identify solved using a full factorial design. Using a statistical
the relationships among items and build the model of approach, analysis of variance (ANOVA), and multi-
problem.23,24 Min25 and Rao et al.26 used a multi- variate ANOVA (MANOVA), Swift43 studied a single-
attribute utility method for supplier evaluation and and multi-supplier selection strategy and identified the
selection, which is another approach for determining variation among the product technical support, price,
the relative weights of attributes. Mani et al.27 focused and cost. Mummalaneni et al.44 utilized a conjoint
on socially sustainable supplier evaluation and selection analysis to discover the ‘‘preferences and trade-offs sup-
through social parameters utilizing AHP for decision- plier evaluation and selection’’ of Chinese purchasing
making. A new AHP approach called D-AHP has been managers. Verma and Pullman45 employed a DCA to
projected to solve the supplier evaluation and selection check the choice of suppliers. A confirmatory factor
problem by utilizing D numbers to extend the classical analysis and a path analysis are used to empirically
AHP approach.28 Rezaei et al.29 proposed a robust inspect the relationships among the supplier selection
two-phased funnel methodology for selecting suppliers, criteria, supplier participation of the design teams, and
along with fuzzy AHP, through which the suppliers are a continuous improvement program, customer satisfac-
assessed against the main criteria and sub-criteria. tion, and overall performance of the firm.46 Riedl
Dweiri et al.30 proposed a decision-support model for et al.47 conducted a MANOVA for supplier selection.
supplier evaluation and selection regarding AHP. Their Through an integrated approach, the combination
proposed methodology is stated as follows: (1) of quality function deployment (QFD) and AHP was
Identification of the main criteria (quality, price, ser- improved to select the best suppliers in a strategic man-
vice, and delivery) is achieved utilizing a literature ner.48 Rouyendegh and Saputro49 developed a robust
review and ranking the main criteria regarding expert fuzzy method with a multi-criteria group decision-
opinions utilizing AHP for the start of the model. (2) making framework for suppliers to select the integrated
The second stage in their developed methodology is the QFD and data envelopment analysis. Karsak and
recognizing of sub-criteria and ranking them regarding Dursun50 described a hybrid technique for suppliers to
the main criteria. (3) The final stage includes a sensitiv- select and allocate orders. This technique integrates the
ity analysis conducted to inspect the robustness of a multi-choice goal programming and fuzzy TOPSIS to
decision utilizing expert choice software. avoid any thoughtlessness in the decision-making pro-
A study by Lo and Sudjatmika31 put forward a new cess. A study by Fallahpour et al.51 aimed at utilizing a
fuzzy analytic hierarchy process (FAHP) for an effec- combination of AHP with multi-expression program-
tive assessment of suppliers using bell-shaped member- ming for introducing supplier selection and evaluation
ship functions. According to mathematical methods. Tavana et al.52 presented a novel hybrid fuzzy
programming models, Chaudhry et al.32 provided a MCDM method that combines an adaptive neuro-
model that can help in supplier evaluation and selection fuzzy inference system (ANFIS) and artificial neural
with price breaks using linear and mixed binary integer network (ANN) to deal with the selection criteria and
programming. Some studies20,33–37 also used the above alternative ranking problems. Luthra et al.22 developed
tools to solve the problem of supplier evaluation and a framework to evaluate the selection of potential sup-
selection. Ng38 used a weighted linear program to con- pliers by applying a combination of AHP and VIKOR,
struct a model that can solve the problem of supplier a multi-criteria optimization and compromise solution
selection with regard to supply quality, variety, deliv- approach. Wan et al.53 investigated a type of MCDM
ery, reciprocal of distance, and reciprocal of price problem with two-level criteria and proposed a novel
index. The study by Van der Rhee et al.39 provided a hybrid approach integrating the 2-tuple linguistic ana-
resultant multinomial legit model of discrete choice lytic network process (TL-ANP) and interval 2-tuple
analysis (DCA) that can be used to determine the influ- ELECTRE-II (IT-ELECTRE II). In the study of Li
ence of flexibility, cost, service features, and delivery on et al.,54 a conjunctive MCDM approach for cloud ser-
supplier selection. Mixed-integer programming was vice supplier selection of manufacturing enterprise was
applied by Sawik40 and deals with the combined sche- developed. Neural network is used to realize the expert
duling of customer orders and selection of suppliers for importance degree determination; fuzzy AHP is used to
single, dual, and multiple objective suppliers. The paper compute the subjective weight; and CRITIC (CRiteria
by Sanayei et al.3 proposed a model to solve MCDM Importance Through Inter-criteria Correlation) is used
problems utilizing the VIKOR method. Moghaddam41 to define the objective weight. TOPSIS is used to
4 Advances in Mechanical Engineering

arrange the suppliers by their weighted index-value


matrix. The integration of fuzzy set theory into
VIKOR, TOPSIS, and gray relational analysis (GRA)
methods was thoroughly discussed by Banaeian et al.55
The work of Jain et al.56 displays the selection of head-
lamp supplier using incorporated fuzzy MCDM
approaches: AHP and TOPSIS.

Methodology
In this section, an MCDM tool is illustrated to support
the decision-makers in evaluating and selecting the best
supplier among the list of competing suppliers. It con-
tains four major elements: (1) the criteria used in the
evaluation of all competing suppliers; (2) a list of com-
peting suppliers and their impact on each criterion, the
data of which are gathered from supplier selection
experts in the purchasing department as well as through
related studies; (3) the MCDM tool utilizing the three
approaches, that is, AHP, fuzzy AHP, and fuzzy
TOPSIS, to assist the decision-maker in comparing and
evaluating the various supplier alternatives based on
the gathered data regarding the company criteria and
supplier benefits; and (4) a comparison between the
three approaches to select the best one for the supplier
evaluation and selection problem. The developed meth-
odology is shown in Figure 1. The methodology pro-
posed above can be executed based on the following
procedures:

1. Gather the wanted data from the purchasing Figure 1. Proposed methodology flow chart.
department, end users, and supplier selection
experts in the selected company. The collected
data involve the following: 2. Rank the criteria based on the expert inputs.
(a) The most important criteria used for the The structured format of this procedure is
evaluation process; shown in Table 2.
(b) A list of competing suppliers; 3. Run the proposed models of AHP, fuzzy AHP,
(c) Development of a scoring system for eva- and fuzzy TOPSIS using the acquired data from
luation purposes; Tables 1 and 2 to perform the desired computa-
(d) The impact of competing suppliers on all tions and comparisons.
criteria and sub-criteria. 4. Compare the three proposed approaches to
choose the best one for the supplier evaluation
and selection problem based on its adequacy
Assess the extracted criteria for each supplier using
regarding changes to agility during the decision
the proposed supplier database. The supplier database
process, computational complexity, number of
includes the chosen suppliers and their contributions to
criteria and alternative suppliers, and adequacy
the selected criteria. The data in this database are gath-
in supporting a group decision.
ered from the studies based on the supplier selection
process, surveys distributed to candidate supplier
experts, and face-to-face interviews. The obtained data
from the experts are transformed into fuzzy form data
based on a designed fuzzy scale to remove the subjectiv-
Analytical hierarchy process
ity of the data for using as inputs to the fuzzy TOPSIS The study of Nydick and Hill1 defined AHP as an
and fuzzy AHP. The database is structured as shown in approach utilized for supplier evaluation and selection
Table 1. problem and included the following procedures:
Alkahtani et al. 5

Table 1. Supplier database structure.57

Supplier 1 Supplier 2 Supplier 3 Supplier 4 . Supplier m

Criteria 1 Low (L) Medium (M) High (H) Low (L) . Very low (VL)
Criteria 2 Medium (M) Very high (VH) Medium (M) High (H) . Medium (M)
Criteria 3 Low (L) Medium (M) Very low (VL) Very high (VH) . High (H)
Criteria 4 High (H) High (H) Low (L) Medium (M) . High (H)
. . . . . . Low (L)
Criteria n Very low (VL) Low (L) Very low (VL) High (H) . Very high (VH)

Table 2. Input form decision-maker for importance.

Criteria 1 Criteria 2 Criteria 3 Criteria 4 . Criteria n

Criteria 1 – Medium (M) High (H) Low (L) . Very low (VL)
Criteria 2 Medium (M) – Medium (M) High (H) . Medium (M)
Criteria 3 Low (L) Medium (M) – Very high (VH) . High (H)
Criteria 4 High (H) High (H) Low (L) – . High (H)
. . . . . . Low (L)
Criteria n Very low (VL) Low (L) Very low (VL) High (H) . –

1. Identify the criteria and sub-criteria for the The implementation of FAHP uses the following
assessment of suppliers; steps:58
2. Based on relative importance, build pairwise
comparisons of the criteria in accomplishing the Step 1. The value of the fuzzy synthetic extent with
goal and calculate the weights or priorities of respect to the ith object is defined through equation
the criteria; (2)
3. Identify measures, which present the accom-
plishment of criteria by each supplier;
4. Based on step 3, for suppliers, build the pairwise " #1
X
m X
n X
m
comparisons of the relative importance with Si = Mgij  Mgij ð2Þ
regard to the criteria, and then calculate the cor- j=1 i=1 j=1
responding weights; Pm j
5. Based on the results of steps 2 and 4, for each To obtain j = 1 Mgi , a fuzzy addition operation of
supplier, calculate the weights in accomplishing m extent analysis values for a particular matrix is
the hierarchy goal. applied such that
!
X
m X
m X
m X
m
Fuzzy AHP approach Mgij = lj , mj , uj , j = 1, 2, . . . , m
j=1 j=1 j=1 j=1
Let X = x1, x2, ., xm be an object set and G = g1, g2,
., gn be a goal set. According to the method by ð3Þ
Chang,58 each object is taken and extent analysis for Pn Pm
each goal is performed, respectively. Therefore, m To calculate i=1 j=1 Mgij , the following fuzzy
extent analysis values for each object can be obtained addition operation of Mgij , (j = 1, 2, . . . , m) is found as
through equation (1) follows
!
Mgi1 , Mgi2 , . . . , Mgim , i = 1, 2, 3, . . . , n ð1Þ X
n X
m X
n X
n X
n
Mgij = li , mi , ui , i = 1, 2, . . . , n
where Mgij , j = 1, 2, ., m, are triangular fuzzy numbers i=1 j=1 i=1 i=1 i=1
(TFNs) that contain parameters l, m, and u, which indi- ð4Þ
cate the least possible value, most possible value, and
upper possible value, respectively. A TFN is repre- The inverse of the vector is then computed using
sented as (l, m, u). equation (5)
6 Advances in Mechanical Engineering

Table 3. Linguistic measure comparisons for the decision-


maker.

Cij VL L M H VH

VL ~1 ~3 ~5 ~7 ~9
L ~1=~3 ~1 ~3 ~5 ~7
M ~1=~5 ~1=~3 ~1 ~3 ~5
H ~1=~7 ~1=~5 ~1=~3 ~1 ~3
VH ~1=~9 ~1=~7 ~1=~5 ~1=~3 ~1

Figure 2. Intersection between M1 and M2. VL: very low; L: low; M: medium; H: high; VH: very high.

" #1  
X
n X
m
1 1 1 Table 4. Fuzzy number membership function.
Mgij = Pn , Pn , Pn ,
i=1 j=1 i = 1 ui i = 1 mi i = 1 li
Linguistic Fuzzy TFNs Reciprocal TFNs
where 8li , mi , ui . 0 terms no. fuzzy no.
ð5Þ Very low ~1 (1,1,2) ~1 (1,1,2)
importance (VL)
Step 2. The degree of possibility of Low ~3 (2,3,4) ~1=~3 (1/4,1/3,1/2)
M1 = ðl1 , m1 , u1 Þ ø M2 = ðl2 , m2 , u2 Þ is expressed importance (L)
through equation (6) Medium ~5 (4,5,6) ~1=~5 (1/6,1/5,1/4)
importance (M)
High ~7 (6,7,8) ~1=~7 (1/8,1/7,1/6)
importance (H)
V ðM1 ø M2 Þ = sup min (mM1 ð xÞ, mM2 ð yÞ ð6Þ Very high ~9 (8,9,9) ~1=~9 (1/9,1/9,1/8)
xøy
importance (VH)
where x and y are the values on the axis of membership TFN: triangular fuzzy number.
function. Equation (6) can be expressed through equa-
tions (7) and (8) as
 
W_ = d_ ðA1 Þ, d_ ðA2 Þ, . . . , d_ ðAn Þ ð11Þ
V ðM2 ø M1 Þ = hgtðM1 \ M2 Þ = mM2 ðd Þ ð7Þ
8 where Ai = ði = 1, 2, 3, . . . , nÞ are n elements.
< 1 if m2 ø m1
V ðM2 ø M1 Þ = 0 if l1 ø l2 ð8Þ
: l1 u2
if otherwise Step 4. Through normalization, the normalized
ðm2 u2 Þðm1 l1 Þ
weight vectors are given in equation (12)
Here, d is the ordinate of the highest intersection
point D between mM1 and mM2 (see Figure 2). To com-
pare M1 and M2 , we need the values of both W = ðd ðA1 Þ, d ðA2 Þ, . . . , d ðAn ÞÞT ð12Þ
V ðM1 ø M2 Þ and V ðM2 ø M1 Þ.
where W is a non-fuzzy number.
Step 3. The degree of possibility for a convex
fuzzy number greater than k convex numbers Step 5. Rank the normalized values to select the best
Mi ði = 1, 2, . . . , k Þ can be defined through equa- supplier.
tion (9)
The information elicitation from experts and users is
a very boring task, particularly when using the FAHP.
V ðM ø M1 , M2 , . . . , Mk Þ = V ½ðM ø M1 Þ and ðM ø M2 Þ, This needs developing many pairwise comparisons. To
and, . . . , andðM ø Mk Þ overcome this issue, Al-Ahmari57 suggested that for the
users and decision-makers, build a pairwise comparison
ð9Þ for the various measures of linguistic. This can be con-
Assume that ducted through a single table utilizing Table 2. The
pairwise comparison of the linguistic measures of the
d_ ðAi Þ = min V ðSi ø Sk Þ ð10Þ decision-maker is illustrated in Table 3, where Cij
denotes the importance of scale i with respect to scale j.
For k = 1, 2, . . . , n, k 6¼ i, the weight vector is given The TFNs for the fuzzy numbers are illustrated in
by equation (11) Table 4.
Alkahtani et al. 7

Fuzzy TOPSIS approach  


V~ = ~vij m 3 n ð20Þ
Fuzzy TOPSIS approach was developed by Chen2 to
fix MCDM problems under doubt. Linguistic variables Here, ~vij is given by equation (21)
are utilized by the decision-makers, Dr (r = 1, ., k), to
estimate the criteria weights and the ratings of alterna- ^
~vij = xij 3 w
~j ð21Þ
tives. Thus, W ~ rj denotes the weight of the jth criterion,
Cj (j = 1, ., m), specified by the rth decision-maker. Step 5. Identify the fuzzy positive ideal solution
Similarly, ~xrij denotes the rating of the ith supplier (alter- (FPIS, A + ) and the fuzzy negative ideal solution
natives), Ai (i = 1, ., n), regarding criterion j, specified (FNIS, A2) based on equations (22) and (23)
by the rth decision-maker. Given these, the approach
involves the following procedures: n o
A+ = ~v+1 , ~
v +
j , . . . , ~
v +
m ð22Þ
Step 1. Collect the criteria and sub-criteria weights n o
and ratings of alternatives that were offered by k A = ~v
1 ,~vj , ...,~ v
m ð23Þ
decision-makers, as shown in equations (13) and
(14), respectively where ~v+ v
j = ð1, 1, 1Þ and ~j = ð0, 0, 0Þ.

Step 6. Compute the distance dj+ and dj of each


1h i
alternative from ~v+ v
~j =
w ~1 + w
w ~ 2j +    + w~ kj ð13Þ j and ~j , respectively, based on
k j equations (24) and (25)
1h i
~xj = ~x1j + x2j +    + ~xkj ð14Þ
k

X
n
Step 2. Combine the fuzzy decision matrix of the cri- dj+ = dv ~vij , ~v+
j ð24Þ
~ ) and alternatives (D)
teria (W ~ based on equations j=1

(15) and (16) X


n

dj = dv ~vij , ~v
j ð25Þ
2 3 j=1
: : : :
6 x11 x12 x1j x1m 7 where d(.,.) denotes the distance between two fuzzy
6 7
6 : : : : 7 numbers based on a vertex approach. For TFNs, this
6 7
D=6
~
6 : : : : 77 ð15Þ can be shown by equation (26)
6 : : : : 7
6 7 rffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffiffi
iffi
4 : : : : 5 1h 2 2 2
d ð~x, ~zÞ = ðlx  lz Þ + ðm  mz Þ + ðux  uz Þ
xn1 xn2 xnj xnm 3
~ = ½w
w ~2 +    + w
~1 + w ~ m ð16Þ ð26Þ

Step 3. Using a linear scale transformation, normal- Step 7. Calculate the closeness coefficient, CCi ,
~
ize the fuzzy decision matrix of the alternatives (D). based on equation (27)
~
The normalized fuzzy decision matrix R is given by
equations (17)–(19) dj
CCi = ð27Þ
dj+ + dj
 
~ = ~rij
R ð17Þ
m3n
! Step 8. According to the closeness coefficient, CCi ,
lij mij uij
~rij = + , + , + and u+
j = maxi uij ðbenefitcriteriaÞ determine the ranking of alternatives in decreasing
uj uj uj order. The best alternative is the one closest to the
ð18Þ FPIS and farthest from the FNIS.
   
lj lj lj
~rij = , , and lj = maxi lij ðcostcriteriaÞ ð19Þ Case study
uij mij lij

Step 4. Calculate the weighted normalized decision


Background
matrix, V~ , by multiplying the weights of the evalua- X company produces chemicals through six units
tion criteria, w
~ j , by the elements ~rij of the normalized according to its annual report (2007): basic chemicals,
fuzzy decision matrix, which is expressed through intermediates, polymers (polyolefins, PVC, and polye-
equation (20) ster), specialized products, fertilizers, and metals (steel,
8 Advances in Mechanical Engineering

along with stakes in aluminum companies). It is one of Table 5. Criteria and sub-criteria of the case study.
the world’s largest makers of polyethylene and poly-
propylene, and the majority (70%) is owned by the Criteria Sub-criteria
Saudi government (company annual report, 2007). At Supplier performance Financial (FIN)
the end of each year, the company forms an expert criteria
committee to evaluate the performance of its suppliers Managerial (MS)
during the past year to reward the best supplier among Support resource (SR)
the list of competing suppliers for certain commodities. Quality systems and process (QS)
Product performance End use (EU)
The committee consists of employees from the purchas- criteria
ing department, research and development section, and Handling (HAN)
end users of the selected commodities. The aim of this Use in manufacturing (UIM)
process is to reward the best supplier and encourage Other business considerations (OBC)
Service performance Customer support (CSU)
the other suppliers to enhance their performance in
criteria
order to be eligible to supply the company with the Customer satisfiers (CST)
commodity in the future. As an example, the material Follow-up (FU)
(X) used for a spare part in a company catalyst plant is Professionalism (PRF)
considered as the area of application for the proposed Cost criteria Purchasing cost (PC)
Transportation cost (TRC)
method. The goal is to select the best supplier among
Storage cost (SC)
four competing suppliers. To apply this method, two Transaction processing cost (TPC)
questions should be answered. The first question is
how many suppliers will provide the material? Under a
single supplier, all quantities are ordered from one sup-
plier. Under multiple suppliers, different quantities supplier performance criteria are divided into finan-
are ordered from different suppliers due to certain cial strength, management approach and capability,
constraints. The second question is what are the cri- technical ability, support resources, and quality sys-
teria that will be used to evaluate and select the best tems. The product performance criteria are classified
supplier? For the first question, due to company’s into the end use, handling, use in manufacturing, and
security policy, and for internal reasons, material X other business considerations. The service perfor-
should be ordered from a single source. The criteria mance criteria are classified into customer support,
used to evaluate the best suppliers are those utilized customer satisfiers, follow-up, and professionalism.
by Kahraman et al.59 with certain modifications, as The cost criteria are divided into the purchase price,
agreed upon by the purchasing department, the deci- transportation cost, storage cost, and transaction
sion-maker, in the company. These criteria are processing cost. Table 5 shows the selected criteria
divided into supplier performance, product perfor- and sub-criteria of the case study. The AHP applied
mance, service performance, and cost criteria. The to the case study is shown in Figure 3.

Figure 3. AHP used in case study.


Alkahtani et al. 9

Table 6. TFN matrix relevant to the criteria and sub-criteria.

Criteria Importance SP PP SP CC

SP (4,5,6) (1,1,2) (1/6,1/5,1/4) (2,3,4) (1/4,1/3,1/2)


PP (8,9,9) (4,5,6) (1,1,2) (6,7,8) (2,3,4)
SP (2,3,4) (1/4,1/3,1/2) (1/8,1/7,1/6) (1,1,2) (1/6,1/5,1/4)
CC (6,7,8) (2,3,4) (1/4,1/3,1/2) (4,5,6) (1,1,2)
FIN MS QS SR
FIN (8,9,9) (1,1,2) (2,3,4) (1,1,2) (4,5,6)
MS (6,7,8) (1/4,1/3,1/2) (1,1,2) (1/4,1/3,1/2) (2,3,4)
QS (8,9,9) (1,1,2) (2,3,4) (1,1,2) (4,5,6)
SR (4,5,6) (1/6,1/5,1/4) (1/4,1/3,1/2) (1/6,1/5,1/4) (1,1,2)
HAN UIM OBC EU
HAN (4,5,6) (1,1,2) (1/4,1/3,1/2) (2,3,4) (1/6,1/5,1/4)
UIM (6,7,8) (2,3,4) (1,1,2) (4,5,6) (1/4,1/3,1/2)
OBC (2,3,4) (1/4,1/3,1/2) (1/6,1/5,1/4) (1,1,2) (1/8,1/7,1/6)
EU (8,9,9) (4,5,6) (2,3,4) (6,7,8) (1,1,2)
FU CSU CST PRF
FU (6,7,8) (1,1,2) (1,1,2) (1/4,1/3,1/2) (2,3,4)
CSU (6,7,8) (1,1,2) (1,1,2) (1/4,1/3,1/2) (2,3,4)
CST (8,9,9) (2,3,4) (2,3,4) (1,1,2) (4,5,6)
PRF (4,5,6) (1/4,1/3,1/2) (1/4,1/3,1/2) (1/6,1/5,1/4) (1,1,2)
PC TRC SC TPC
PC (6,7,8) (1,1,2) (1/6,1/5,1/4) (2,3,4) (1/4,1/3,1/2)
TRC (2,3,4) (4,5,6) (1,1,2) (6,7,8) (2,3,4)
SC (1,1,2) (1/4,1/3,1/2) (1/8,1/7,1/6) (1,1,2) (1/6,1/5,1/4)
TPC (4,5,6) (2,3,4) (1/4,1/3,1/2) (4,5,6) (1,1,2)

TFN: triangular fuzzy number; FIN: financial; MS: managerial; QS: quality systems and process; SR: support resource; HAN: handling; UIM: use in
manufacturing; OBC: other business considerations; EU: end use; FU: follow-up; CSU: customer support; CST: customer satisfiers; PRF:
professionalism; PC: purchasing cost; TRC: transportation cost; SC: storage cost; TPC: transaction processing cost.

Data analysis SSC = ð3:42, 4:53, 6:75Þ  ð0:02, 0:03, 0:04Þ


To assess the suppliers according to the company’s = ð0:08, 0:14, 0:27Þ
selection criteria, measures of selected criteria need to SPP = ð13:00, 16:00, 20:00Þ  ð0:02, 0:03, 0:04Þ
be developed. A unanimity should be formed within = ð0:31, 0:51, 0:80Þ
the organization or team regarding the standards, mea-
SSp = ð1:54, 1:68, 2:92Þ  ð0:02, 0:03, 0:04Þ
sures, and approaches utilized to compare or rate sup-
pliers. A company needs to propose efficient measures = ð0:04, 0:05, 0:11Þ
for all of its chosen criteria. The decision-maker decides SCC = ð7:25, 9:33, 12:50Þ  ð0:02, 0:03, 0:04Þ
on the importance levels of the chosen criteria utilizing = ð0:17, 0:30, 0:50Þ
a scale in which VL = very low importance, L = low,
M = medium, H = high, and VH = very high. These The possibility degree of Si over Sj (i6¼j) can be
importance levels are transformed into their associated defined through equation (7). SSC ø SPP = 0 and
fuzzy numbers utilizing the proposed program. These SSC ø SSP = 1
criteria and sub-criteria with their importance and asso-
ciated fuzzy numbers are shown in Table 6. In addition, 0:17  0:27
SSC ø SCC = = 0:39
an evaluation of the suppliers regarding the sub-criteria ð0:14  0:27Þ  ð0:3  0:17Þ
of the main criteria is presented in Table 7. SPP ø SSC = 1, SPP ø SSP = 1, SPP ø SCC = 1
0:08  0:11
SSP ø SSC = = 0:28
Fuzzy AHP application. The fuzzy synthetic extent value ð0:05  0:11Þ  ð0:14  0:08Þ
regarding each criterion is computed utilizing the for- SSP ø SPP = 0, SSP ø SCC = 0
mula for the operations of algebraic of the fuzzy set and SCC ø SSC = 1, SCC ø SSp = 1
equation (2). The various values of the fuzzy synthetic
0:31  0:5
extent regarding the four main criteria are represented SCC ø SPP = = 0:47
by SSC, SPP, SSP, and SCC, respectively ð0:3  0:5Þ  ð0:51  0:31Þ
10 Advances in Mechanical Engineering

Table 7. Supplier’s evaluation regarding the sub-criteria of the is the most convenient supplier for the special ‘‘finan-
criteria. cial aspect’’ criterion. All results of the identified sup-
pliers and the selected main and sub-criteria are
Criteria Supplier 1 Supplier 2 Supplier 3 Supplier 4
presented in Table 8. Finally, the final normalized
FIN (6,7,8) (4,5,6) (8,9,9) (6,7,8) scores for all alternative suppliers are illustrated in the
MS (4,5,6) (4,5,6) (6,7,8) (4,5,6) last row of Table 8 as the overall weight vectors for the
QS (8,9,9) (2,3,4) (8,9,9) (4,5,6) main criteria and suppliers. According to this final
SR (2,3,4) (4,5,6) (8,9,9) (1,1,2) score, supplier 3 obtains a value of 0.405 and is the best
HAN (2,3,4) (4,5,6) (6,7,8) (6,7,8)
UIM (6,7,8) (8,9,9) (8,9,9) (4,5,6)
supplier for this case study.
OBC (4,5,6) (4,5,6) (6,7,8) (8,9,9)
EU (2,3,4) (4,5,6) (8,9,9) (6,7,8)
AHP application. The given case study was solved utiliz-
FU (4,5,6) (2,3,4) (6,7,8) (4,5,6)
CSU (2,3,4) (6,7,8) (6,7,8) (4,5,6) ing AHP. With AHP, the preference degree of the
CST (2,3,4) (4,5,6) (8,9,9) (6,7,8) decision-maker regarding the selection of each pairwise
PRF (4,5,6) (4,5,6) (8,9,9) (6,7,8) comparison is constructed using crisp values acquired
PC (8,9,9) (4,5,6) (6,7,8) (2,3,4) from Table 6. The importance scale is transformed into
TRC (6,7,8) (8,9,9) (4,5,6) (6,7,8)
crisp values as VL = 1, L = 3, M = 5, H = 7, and
SC (2,3,4) (6,7,8) (8,9,9) (4,5,6)
TPC (2,3,4) (4,5,6) (2,3,4) (8,9,9) VH = 9. The pairwise comparisons are performed
according to the recent developments in AHP metho-
FIN: financial; MS: managerial; QS: quality systems and process; SR: dology.57 The pairwise comparisons between each of
support resource; HAN: handling; UIM: use in manufacturing; OBC:
the two selected criteria are made utilizing the values of
other business considerations; EU: end use; FU: follow-up; CSU:
customer support; CST: customer satisfiers; PRF: professionalism; PC: their importance made from the following formula
purchasing cost; TRC: transportation cost; SC: storage cost; TPC: IF objective(i) importance ø objective(j) importance
transaction processing cost. THEN
PW(i, j) = objective(i) importance 2 objective(j)
importance + 1
Using equation (8), the minimum possibility degree PW(j, i) = 1/PW(i, j)
can be presented as follows ELSE
PW(j, i) = objective(j) importance 2 objective(i)
V ðSSC ø SPP , SSP , SCC Þ = minð0, 1, 0:40Þ = 0 importance + 1
V ðSPP ø SSC , SSP , SCC Þ = minð1, 1, 1Þ = 1 PW(i, j) = 1/PW(j, i)
END IF
V ðSSP ø SSC , SPP , SCC Þ = minð0:27, 0, 0Þ = 0
where PW(j, i) is the value of pairwise comparison
V ðSCC ø SSC , SPP , SSP Þ = minð1, 0:47, 1Þ = 0, 47 between i and j. Table 9 shows the evaluation matrix
relevant to the main criteria and sub-criteria.
Thus, the weight vector is given as
The weight vectors for the sub-criteria are calcu-
W_ = ð0, 1, 0, 047ÞT , and after normalization process, lated. Table 10 shows the summary of the resulting
the weight vector regarding the decision criteria SSC, weight vectors for the main criteria, sub-criteria, and
SPP, SSP, and SCC can be represented as follows overall weight vectors. It is clear that the ‘‘product per-
formance’’ is the most important criterion for company
W = ð0:0, 0:68, 0:00, 0:32Þ
with regard to the selected material. According to the
The above weighed vector indicates that the second ranking of the suppliers, supplier 3 is the best supplier
criterion (product performance) is the most important for this case study with the largest overall score of
criterion selected. According to this evaluation, the two 0.413. The criteria of the firm selected are consistent
main criteria in the first level are ‘‘product perfor- with the supplier capabilities. Although supplier 3 did
mance’’ and ‘‘cost criteria’’ with an importance value of not have the highest weight with respect to the cost cri-
0.68 and 0.32, respectively. teria (for both FAHP and AHP), it is still the best sup-
The developed computerized tool conducts the plier among all of the competing suppliers regarding
desired computations based on the various procedure the overall evaluation.
of FAHP to get the weight vectors of every evaluated
alternative supplier for every chosen criterion. Fuzzy TOPSIS application. According to the linguistic
The weight vector of the four suppliers (illustrated in terms, the decision-makers perform assessment of the
Table 8) regarding to the ‘‘financial aspect’’ criterion is weight of the criteria and the supplier’s ratings; TFNs
calculated as (0.208, 0.00, 0.498, 0.294). It is clear from were utilized to identify the linguistic values of these
the above weighed vector that supplier 3 obtains a variables, as indicated in Tables 6 and 7. Table 11
value of 0.498 (the maximum value in this vector) and shows the TFN aggregation of the judgments and
Alkahtani et al. 11

Table 8. Fuzzy AHP results for the case study.

Criteria Weight Supplier 1 Supplier 2 Supplier 3 Supplier 4

FAHP results (weight vectors for sub-criteria of SC criteria and suppliers, and normalized score)
FIN 0.421 0.208 0.0 0.498 0.294
MS 0.158 0.162 0.162 0.464 0.211
QS 0.421 0.486 0 0.486 0.027
SR 0 0 0.391 0.609 0
Normalization – 0.318 0.026 0.488 0.169
FAHP results (weight vectors for sub-criteria of PP criteria and suppliers, and normalized score)
HAN 0 0 0.037 0.408 0.555
UIM 0.32 0.044 0.478 0.478 0
OBC 0 0 0 0.312 0.688
EU 0.68 0 0 0.5 0.5
Normalization – 0.014 0.153 0.493 0.34
FAHP results (weight vectors for sub-criteria of SP criteria and suppliers, and normalized score)
FU 0.228 0.228 0 0.545 0.228
CSU 0.228 0 0.452 0.452 0.096
CST 0.545 0 0 0.64 0.36
PRF 0 0 0 0.649 0.351
Normalization – 0.052 0.103 0.576 0.269
FAHP results (weight vectors for sub-criteria of CC criteria and suppliers, and normalized score)
PC 0.68 0.68 0 0.32 0
TRC 0 0.246 0.568 0 0.187
SC 0 0 0.32 0.68 0
TPC 0.32 0.005 0.168 0 0.826
Normalization – 0.464 0.054 0.218 0.264
FAHP results (overall weight vectors for main criteria and suppliers, and normalized score)
SP 0 0.318 0.026 0.488 0.169
PP 0.68 0.014 0.153 0.493 0.34
SP 0 0.052 0.103 0.576 0.269
CC 0.32 0.464 0.054 0.218 0.264
Normalization – 0.158 0.121 0.405 0.316

AHP: analytic hierarchy process; FAHP: fuzzy AHP; FIN: financial; MS: managerial; QS: quality systems and process; SR: support resource; HAN:
handling; UIM: use in manufacturing; OBC: other business considerations; EU: end use; FU: follow-up; CSU: customer support; CST: customer
satisfiers; PRF: professionalism; PC: purchasing cost; TRC: transportation cost; SC: storage cost; TPC: transaction processing cost.

normalized fuzzy decision matrix of the weights of the selected criteria by the decision-maker (see Table 16
main criteria, sub-criteria, and the supplier’s ratings. and Figure 4). The presented methodology concluded
The weighted normalized fuzzy decision matrix is that supplier 3 is considered in the case study.
shown in Table 12. Based on the study by Chen,2 FPIS,
A + and FNIS, A2 are expressed as
Comparative analysis of the proposed
+
A = fð1, 1, 1Þ, ð1, 1, 1Þ, ð1, 1, 1Þ, ð1, 1, 1Þg approaches
A = fð0, 0, 0Þ, ð0, 0, 0Þ, ð0, 0, 0Þ, ð0, 0, 0Þg The comparison of all considered approaches was con-
ducted based on the following factors: agility during the
The distances dj+ and dj of the ratings of each sup- decision process, computational complexity, number of
plier from A + and A2, computed based on equations criteria and alternative suppliers, and adequacy in sup-
(24)–(26), are illustrated in Tables 13 and 14, respec- porting a group decision.
tively. The overall performance of every supplier is rep-
resented by CCi, which is computed in equation (27)
and shown in Table 15. Finally, this computation leads Agility during the decision process
to the outranking illustrated in Table 15, which means The number of judgments desired from decision-makers
that supplier 3 is the best alternative, followed by sup- for all approaches is assessed by this factor. Let m be
pliers 4, 2, and 1, in that order. the number of criteria, and n be the number of suppli-
In the final obtained results for FAHP, AHP, and ers, in the AHP and fuzzy AHP approaches, for a deci-
fuzzy TOPSIS, the alternative suppliers are ranked sion matrix Ai 3 i, the required number of judgments is
based on their respective weights regarding the as follows
12 Advances in Mechanical Engineering

Table 9. Evaluation matrix relevant to the main criteria and Considering equations (29) and (30), Figure 5 shows
sub-criteria. the number of judgments for two techniques when the
number of alternatives and the criteria differ from two
Criteria Importance SP PP SP CC
to nine. It can be observed that, as the number of alter-
SP 5 1 1/5 3 1/3 natives and criteria increase, the number of desired
PP 9 5 1 7 3 judgments when utilizing AHP and fuzzy AHP is large
SP 3 1/3 1/7 1 1/5 and more prominent than when utilizing fuzzy
CC 7 3 1/3 5 1 TOPSIS. Thus, in the case study, fuzzy TOPSIS needed
FIN MS QS SR
FIN 9 1 3 1 5 84 judgments, whereas AHP and fuzzy AHP needed
MS 7 1/3 1 1/3 3 126 judgments. Thus, it can be stated that the fuzzy
QS 9 1 3 1 5 TOPSIS strategy performs better than the AHP and
SR 5 1/5 1/3 1/5 1 fuzzy AHP strategies in terms of the level of communi-
HAN UIM OBC EU cation with decision-makers for data gathering. Based
HAN 5 1 1/3 3 1/5
UIM 7 3 1 5 1/3 on previous results, fuzzy TOPSIS provides more note-
OBC 3 1/3 1/5 1 1/7 worthy dexterity in the choice procedure than AHP
EU 9 5 3 7 1 and fuzzy AHP.
FU CSU CST PRF
FU 7 1 1 1/3 3
CSU 7 1 1 1/3 3
CST 9 3 3 1 5
Computational complexity
PRF 5 1/3 1/3 1/5 1 In this section, the complexity of computation of all
PC TRC SC TPC techniques is assessed considering the time intricacy.
PC 7 1 5 7 3
TRC 3 1/5 1 3 1/3 Similar to the study of Chang,60 the time intricacy, T,
SC 1 1/7 1/3 1 1/5 is assessed in light of the number of augmentations
TPC 5 1/3 3 5 1 inside the calculations. In this article, logical and expo-
nentiation operations are moreover utilized as a gauge
FIN: financial; MS: managerial; QS: quality systems and process; SR:
support resource; HAN: handling; UIM: use in manufacturing; OBC:
of the time complexity. Considering there are n elective
other business considerations; EU: end use; FU: follow-up; CSU: suppliers, m criteria, and ms sub-criteria, the AHP tech-
customer support; CST: customer satisfiers; PRF: professionalism; PC: nique requires m(m + 1) + n(m + 1) operations to
purchasing cost; TRC: transportation cost; SC: storage cost; TPC: determine the AHP-engineered degree for all choice
transaction processing cost. grids, and finally nm operations are required to process
the execution worldwide. In this manner, the time com-
plexity (TAHP) of the AHP approach is communicated
i1
JAi, i = i ð28Þ through equation (31)
2
Because there are m matrices of size n 3 n (one for TAHP = mðm + 1Þ + nðm + 1Þ + nm
ð31Þ
every decision criterion), moreover to the decision = mðm + 2n + 1Þ + n
matrix of size m 3 m with regard to the criteria weight,
and ms 3 ms with regard to the sub-criteria weight, the The fuzzy AHP approach requires 6m(n + 1) opera-
total required number of judgments is given in equation tions to calculate the fuzzy synthetic extent to all the
(29) decision matrices, nm(n2 1) + n(n2 1) to calculate the
possibility degrees, n(m + 1) to normalize the vector
m1 Xm
msi  1 n1Xm W_ , and finally nm operations to calculate the overall
Jn,AHP
m, ms = m + msi +n msi performance. Therefore, the time complexity, TFuzzy
2 i=1
2 2 i=1
AHP, of the fuzzy AHP approach is expressed using
ð29Þ equation (32)
In the fuzzy TOPSIS approach, a total of m judg- TFuzzyAHP = 6mðn + 1Þ + nmðn  1Þ + nðn  1Þ
ments for each of the n alternatives are desired, more-
over to the decision matrix of size m 3 m with regard to + nðm  1Þ + nm ð32Þ
2
the criteria weight, and ms 3 ms with regard to the sub- TFuzzyAHP = n ðm + 1Þ + mð7n + 6Þ
criteria weight, it can be represented as equation (30)
Moreover, fuzzy TOPSIS approach needs 3nm oper-
X
m X
m ations to calculate the normalized decision matrix, 3nm
Jn,FuzzyTOPSIS
m, ms =m+ msi + n msi ð30Þ operations to calculate the weighted decision matrix,
i=1 i=1
7nm operations to calculate the distances d + , and 7nm
operations to calculate the distances d2. Therefore, the
Alkahtani et al. 13

Table 10. AHP results for the case study.

Criteria Weight Supplier 1 Supplier 2 Supplier 3 Supplier 4

AHP results (weight vectors for sub-criteria of SC criteria and suppliers, and normalized score)
FIN 0.390 0.2 0.078 0.522 0.2
MS 0.152 0.167 0.167 0.5 0.167
QS 0.390 0.423 0.051 0.423 0.104
SR 0.068 0.097 0.209 0.643 0.051
Weight vectors – 0.275 0.090 0.488 0.147
AHP results (weight vectors for sub-criteria of PP criteria and suppliers, and normalized score)
HAN 0.118 0.068 0.152 0.39 0.39
UIM 0.262 0.152 0.39 0.39 0.068
OBC 0.055 0.095 0.095 0.249 0.56
EU 0.565 0.055 0.118 0.565 0.262
Weight vectors – 0.084 0.192 0.481 0.243
AHP results (weight vectors for sub-criteria of SP criteria and suppliers, and normalized score)
FU 0.200 0.2 0.078 0.522 0.2
CSU 0.200 0.068 0.39 0.39 0.152
CST 0.522 0.055 0.118 0.565 0.262
PRF 0.078 0.095 0.095 0.56 0.249
Weight vectors – 0.090 0.163 0.521 0.227
AHP results (weight vectors for sub-criteria of CC criteria and suppliers, and normalized score)
PC 0.565 0.565 0.118 0.262 0.055
TRC 0.118 0.2 0.522 0.078 0.2
SC 0.055 0.055 0.262 0.565 0.118
TPC 0.262 0.076 0.191 0.076 0.657
Weight vectors – 0.366 0.193 0.208 0.233
AHP results (overall weight vectors for main criteria and suppliers, and normalized score)
SP 0.118 0.275 0.09 0.488 0.147
PP 0.565 0.084 0.192 0.481 0.243
SP 0.055 0.09 0.163 0.521 0.227
CC 0.262 0.366 0.193 0.208 0.233
Weight vectors – 0.181 0.179 0.413 0.228

AHP: analytic hierarchy process; FIN: financial; MS: managerial; QS: quality systems and process; SR: support resource; HAN: handling; UIM: use in
manufacturing; OBC: other business considerations; EU: end use; FU: follow-up; CSU: customer support; CST: customer satisfiers; PRF:
professionalism; PC: purchasing cost; TRC: transportation cost; SC: storage cost; TPC: transaction processing cost.

time complexity, TFuzzy TOPSIS, of the fuzzy TOPSIS options. Saaty61 proposed that the number of criteria
approach is expressed through equation (33) or other options to be contrasted when utilizing AHP
be restricted to nine so as to not force a trade-off with
TFuzzyTOPSIS = 3nm + 3nm + 7nm + 7nm = 20nm ð33Þ human judgment and its consistency. This recommen-
dation is applied similar to the fuzzy AHP approach.
Figure 6 shows the variety of complexity as an ele- In the applied case, using the four main criteria, four
ment of the number of choices for the various number sub-criteria for each main criterion, and four choices,
of criteria for all techniques. It can be observed that, the utilizations of the AHP and fuzzy AHP methodolo-
overall, AHP shows better performance than fuzzy gies were impeccably feasible. Despite the fact that the
AHP and fuzzy TOPSIS; additionally, fuzzy AHP restriction regarding the number of main and sub-
shows better performance than fuzzy TOPSIS. In the criteria can be reduced by applying them to the AHP
case study, the AHP strategy needed 404 operations, and fuzzy AHP pecking-order structures, the number
the fuzzy AHP technique needed 816 operations, and of options forces a genuine confinement. Consequently,
the fuzzy TOPSIS technique required 1280 operations. the decision of the technique relies on the particularities
of the current conditions. For example, while choosing
another supplier for another item, with numerous
Number of criteria and alternative suppliers potential providers, the use of fuzzy TOPSIS results in
The fuzzy TOPSIS strategy does not force any confine- a superior decision.
ments regarding the number of options or criteria uti-
lized as a part of the determination procedure.
However, a similar examination of the AHP and fuzzy Adequacy in supporting group decision-making
AHP approaches shows that they do force certain All approaches allow judgment gathering for greater
impediments with regard to the number of criteria and than one decision-maker. According to the fuzzy
14 Advances in Mechanical Engineering

Weights of criteria 3 sub-criteria


TOPSIS approach, gathering of various judgments is
performed based on equations (34) and (35) for the cri-

FIN: financial; MS: managerial; QS: quality systems and process; SR: support resource; HAN: handling; UIM: use in manufacturing; OBC: other business considerations; EU: end use; FU: follow-up; CSU:
teria weights and the alternative supplier ratings
(0.198,0.309,0.444) 1h 1 i
(0.395,0.556,0.667)
(0.296,0.432,0.593)

(0.593,0.778,0.889)

(0.148,0.259,0.395)
(0.198,0.333,0.444)
(0.099,0.185,0.296)

(0.074,0.086,0.198)
(0.148,0.259,0.395)
(0.395,0.556,0.667)

(0.395,0.556,0.667)

(0.198,0.333,0.444)

(0.148,0.259,0.395)

(0.296,0.432,0.593)
~ 2j +    + w
~ kj ð34Þ

(0.444,0.605,0.79)
~j =
w ~j + w
w
k
1h i
(0.79,1,1) ~ ij = ~x1j + ~xrj +    + w
w ~ kj ð35Þ
k
here, k indicates the decision-makers.
In the case of fuzzy AHP, despite the fact that this is
not expressly considered in the technique proposed by
(0.444,0.556,0.667)

(0.222,0.333,0.444)

(0.667,0.778,0.889)
Weights of criteria

customer support; CST: customer satisfiers; PRF: professionalism; PC: purchasing cost; TRC: transportation cost; SC: storage cost; TPC: transaction processing cost.
Chang,60 the author recommends that a collection be
made by utilizing the mathematical average of the judg-
(0.889,1,1)

ments. Because the measure of information desired by


the fuzzy AHP technique is more noteworthy than that
desired by fuzzy TOPSIS, expanding the number of
decision-makers will bring about a larger increment in
Weights of sub-criteria

the time unpredictability of fuzzy AHP when con-


trasted with the fuzzy TOPSIS strategy. In this manner,
(0.667,0.778,0.889)

(0.444,0.556,0.667)
(0.444,0.556,0.667)
(0.667,0.778,0.889)

(0.667,0.778,0.889)
(0.667,0.778,0.889)

(0.444,0.556,0.667)

(0.111,0.111,0.222)
(0.222,0.333,0.444)
(0.222,0.333,0.444)

(0.667,0.778,0.889)

(0.444,0.556,0.667)

although both techniques support group decision-mak-


Table 11. Fuzzy numbers and normalized fuzzy decision matrix of the aggregated ratings of the alternative suppliers.

ing, due to the effect on the time complexity, the fuzzy


(0.889,1,1)

(0.889,1,1)

(0.889,1,1)
(0.889,1,1)

TOPSIS strategy is determined to be the best. Despite


the fact that both strategies register a collection in light
of the fuzzy arithmetic mean, an optional approach is
weighting the judgments of the distinctive decision-
(0.667,0.778,0.889)
(0.444,0.556,0.667)

(0.111,0.111,0.222)
(0.667,0.778,0.889)
(0.444,0.556,0.667)

(0.667,0.778,0.889)
(0.444,0.556,0.667)
(0.444,0.556,0.667)
(0.667,0.778,0.889)
(0.667,0.778,0.889)

(0.444,0.556,0.667)
(0.444,0.556,0.667)

(0.667,0.778,0.889)
(0.222,0.333,0.444)

makers and the total information by determining the


weighted average, for example, the procurement crew
A4 (Supplier 4)

will be better prepared to judge the execution of the


(0.889,1,1)

(0.889,1,1)

suppliers, and in this way, their judgments may be


more significant than those of others not as familiar
with the acquisition process. Table 17 shows the sum-
marized findings for comparative analysis of AHP,
(0.667,0.778,0.889)

(0.667,0.778,0.889)

(0.667,0.778,0.889)

(0.667,0.778,0.889)
(0.667,0.778,0.889)

(0.444,0.556,0.667)

(0.222,0.333,0.444)
(0.667,0.778,0.889)

fuzzy AHP, and fuzzy TOPSIS. Note that the com-


parative results will be affected if the input data are
A3 (Supplier 3)

changed.
(0.889,1,1)

(0.889,1,1)

(0.889,1,1)

(0.889,1,1)

(0.889,1,1)
(0.889,1,1)

(0.889,1,1)
(0.889,1,1)

Conclusion and future work


In this article, an MCDM tool was developed to select
(0.444,0.556,0.667)
(0.444,0.556,0.667)

(0.444,0.556,0.667)
(0.444,0.556,0.667)

(0.444,0.556,0.667)
(0.444,0.556,0.667)
(0.222,0.333,0.444)
(0.667,0.778,0.889)
(0.444,0.556,0.667)
(0.444,0.556,0.667)

(0.667,0.778,0.889)
(0.444,0.556,0.667)
(0.222,0.333,0.444)

(0.444,0.556,0.667)

the best supplier at X company. To develop this tool,


A2 (Supplier 2)

two questions were answered. First, what criteria


should be considered to evaluate each supplier? Second,
(0.889,1,1)

(0.889,1,1)

what methodology should be used to select the best


supplier? A literature review was conducted regarding
these two questions. Several various approaches have
been proposed, including the AHP, fuzzy AHP, and
(0.667,0.778,0.889)
(0.444,0.556,0.667)

(0.222,0.333,0.444)
(0.222,0.333,0.444)
(0.667,0.778,0.889)
(0.444,0.556,0.667)
(0.222,0.333,0.444)
(0.444,0.556,0.667)
(0.222,0.333,0.444)
(0.222,0.333,0.444)
(0.444,0.556,0.667)

(0.667,0.778,0.889)
(0.222,0.333,0.444)
(0.222,0.333,0.444)

fuzzy TOPSIS. Because classical AHP does not reflect


A1 (Supplier 1)

the human thought process, the fuzzy AHP method


(0.889,1,1)

(0.889,1,1)

was proposed to overcome the weakness of classic


AHP. Fuzzy AHP and fuzzy TOPSIS have been used
to assist decision-makers in companies in supplier selec-
tion process. The proposed methodology combines
databases for suppliers obtained from experts and pre-
Criteria

HAN

vious studies, along with MCDM tools (AHP, fuzzy


OBC

TRC
CSU

TPC
CST
UIM

PRF
FIN

QS
MS

PC
EU
FU

SC
SR

AHP, and fuzzy TOPSIS) to be used for evaluations


Alkahtani et al. 15

Table 12. Weighted normalized fuzzy decision matrix.

Criteria A1 A2 A3 A4

FIN (0.263,0.432,0.593) (0.176,0.309,0.444) (0.351,0.556,0.667) (0.263,0.432,0.593)


MS (0.132,0.24,0.395) (0.132,0.24,0.395) (0.198,0.336,0.527) (0.132,0.24,0.395)
QS (0.351,0.556,0.667) (0.088,0.185,0.296) (0.351,0.556,0.667) (0.176,0.309,0.444)
SR (0.044,0.103,0.198) (0.088,0.171,0.296) (0.176,0.309,0.444) (0.022,0.034,0.099)
HAN (0.088,0.185,0.296) (0.176,0.309,0.444) (0.263,0.432,0.593) (0.263,0.432,0.593)
UIM (0.395,0.605,0.79) (0.527,0.778,0.889) (0.527,0.778,0.889) (0.263,0.432,0.593)
OBC (0.088,0.185,0.296) (0.088,0.185,0.296) (0.132,0.259,0.395) (0.176,0.333,0.444)
EU (0.176,0.333,0.444) (0.351,0.556,0.667) (0.702,1,1) (0.527,0.778,0.889)
FU (0.066,0.144,0.263) (0.033,0.086,0.176) (0.099,0.202,0.351) (0.066,0.144,0.263)
CSU (0.033,0.086,0.176) (0.099,0.202,0.351) (0.099,0.202,0.351) (0.066,0.144,0.263)
CST (0.044,0.111,0.198) (0.088,0.185,0.296) (0.176,0.333,0.444) (0.132,0.259,0.395)
PRF (0.044,0.103,0.198) (0.044,0.103,0.198) (0.088,0.185,0.296) (0.066,0.144,0.263)
PC (0.395,0.605,0.79) (0.198,0.336,0.527) (0.296,0.471,0.702) (0.099,0.202,0.351)
TRC (0.099,0.202,0.351) (0.132,0.259,0.395) (0.066,0.144,0.263) (0.099,0.202,0.351)
SC (0.016,0.029,0.088) (0.049,0.067,0.176) (0.066,0.086,0.198) (0.033,0.048,0.132)
TPC (0.066,0.144,0.263) (0.132,0.24,0.395) (0.066,0.144,0.263) (0.263,0.432,0.593)

FIN: financial; MS: managerial; QS: quality systems and process; SR: support resource; HAN: handling; UIM: use in manufacturing; OBC: other
business considerations; EU: end use; FU: follow-up; CSU: customer support; CST: customer satisfiers; PRF: professionalism; PC: purchasing cost;
TRC: transportation cost; SC: storage cost; TPC: transaction processing cost.

Table 13. Rating distances of every alternative from Table 14. Ratings distances of every alternative from A2
A + regarding every criterion. regarding every criterion.

Criteria d (A1, A + ) d (A2, A + ) d (A3, A + ) d (A4, A + ) Criteria d (A1, A2) d (A2, A2) d (A3, A2) d (A4, A2)

FIN 0.586 0.699 0.493 0.586 FIN 0.450 0.328 0.540 0.450
MS 0.752 0.752 0.660 0.752 MS 0.278 0.278 0.378 0.278
QS 0.493 0.815 0.493 0.699 QS 0.540 0.208 0.540 0.328
SR 0.887 0.819 0.699 0.949 SR 0.131 0.204 0.328 0.062
HAN 0.815 0.699 0.586 0.586 HAN 0.208 0.328 0.450 0.450
UIM 0.434 0.309 0.309 0.586 UIM 0.618 0.747 0.747 0.450
OBC 0.815 0.815 0.746 0.691 OBC 0.208 0.208 0.283 0.336
EU 0.691 0.493 0.172 0.309 EU 0.336 0.540 0.912 0.747
FU 0.846 0.904 0.790 0.846 FU 0.177 0.115 0.241 0.177
CSU 0.904 0.790 0.790 0.846 CSU 0.115 0.241 0.241 0.177
CST 0.885 0.815 0.691 0.746 CST 0.133 0.208 0.336 0.283
PRF 0.887 0.887 0.815 0.846 PRF 0.131 0.131 0.208 0.177
PC 0.434 0.660 0.537 0.790 PC 0.618 0.378 0.517 0.241
TRC 0.790 0.746 0.846 0.790 TRC 0.241 0.283 0.177 0.241
SC 0.956 0.904 0.885 0.930 SC 0.054 0.112 0.130 0.083
TPC 0.846 0.752 0.846 0.586 TPC 0.177 0.278 0.177 0.450
d+
j 12.022 11.859 10.358 11.539 d
j 4.416 4.587 6.207 4.930

FIN: financial; MS: managerial; QS: quality systems and process; FIN: financial; MS: managerial; QS: quality systems and process;
SR: support resource; HAN: handling; UIM: use in manufacturing; SR: support resource; HAN: handling; UIM: use in manufacturing;
OBC: other business considerations; EU: end use; FU: follow-up; OBC: other business considerations; EU: end use; FU: follow-up;
CSU: customer support; CST: customer satisfiers; PRF: professionalism; CSU: customer support; CST: customer satisfiers; PRF: professionalism;
PC: purchasing cost; TRC: transportation cost; SC: storage cost; PC: purchasing cost; TRC: transportation cost; SC: storage cost;
TPC: transaction processing cost. TPC: transaction processing cost.

and comparisons of the criteria and alternative suppli- A real case study was presented in this article to
ers of different companies. In the proposed methodol- validate the suggested methodology. One material
ogy, both qualitative and quantitative factors of the (X) used in a spare part was selected from the com-
system criteria and supplier benefits are considered. pany plant. Four competing suppliers were evalu-
This methodology was supported using a program to ated against four main criteria, each of which
facilitate the application and supply the desired compu- contains four sub-criteria. It was found that supplier
tational precision. 3 was evaluated to be the best among all of the
16 Advances in Mechanical Engineering

Table 15. Outranking of alternative suppliers based on fuzzy Table 16. Overall supplier scores using AHP, fuzzy AHP, and
TOPSIS. fuzzy TOPSIS.

Supplier d+
j d
j CCi Rank Suppliers AHP Fuzzy AHP Fuzzy TOPSIS

A1 (Supplier 1) 12.022 4.416 0.269 4 Score Rank Score Rank Score Rank
A2 (Supplier 2) 11.859 4.587 0.279 3
A3 (Supplier 3) 10.358 6.207 0.375 1 Supplier 1 0.181 3 0.158 3 0.269 4
A4 (Supplier 4) 11.539 4.930 0.299 2 Supplier 2 0.179 4 0.121 4 0.279 3
Supplier 3 0.413 1 0.405 1 0.375 1
TOPSIS: technique for order of preference by similarity to ideal solution. Supplier 4 0.228 2 0.316 2 0.299 2

AHP: analytic hierarchy process; TOPSIS: technique for order of


preference by similarity to ideal solution.

Figure 4. Overall supplier scores using AHP, fuzzy AHP, and fuzzy TOPSIS.

Figure 5. Comparative analysis with respect to agility during the decision process.

competing suppliers with regard to all of the pro- complexity, AHP performs better than fuzzy AHP
posed approaches. However, the comparative analy- and fuzzy TOPSIS. Moreover, the fuzzy TOPSIS
sis showed that, in terms of computational approach is better suited to the supplier selection
Alkahtani et al. 17

Figure 6. Comparative analysis with respect to the time complexity.

Table 17. Summarized comparative analysis of AHP, fuzzy AHP, and fuzzy TOPSIS.

Parameters AHP Fuzzy AHP Fuzzy TOPSIS

Agility during the decision – – Shows better performance than


process AHP and fuzzy AHP
Computational complexity Shows better Shows better performance than –
performance fuzzy TOPSIS
than fuzzy AHP
and fuzzy
TOPSIS
Number of criteria and – – Shows better performance than
alternative suppliers AHP and fuzzy AHP
Adequacy in supporting group – – Shows better performance than
decision-making AHP and fuzzy AHP

AHP: analytic hierarchy process; TOPSIS: technique for order of preference by similarity to ideal solution.

problem with respect to agility during the decision Declaration of conflicting interests
process, the number of criteria and alternative sup- The author(s) declared no potential conflicts of interest with
pliers, and adequacy with regard to the support respect to the research, authorship, and/or publication of this
group decision. Therefore, this article contributes to article.
the introduction of a methodology for helping prac-
titioners and researchers select more efficient meth- Funding
ods to the supplier selection problem. An expansion
of the research reported in this thesis can evolve in The author(s) disclosed receipt of the following financial sup-
port for the research, authorship, and/or publication of this
the following directions:
article: The authors extend their appreciation to the Deanship
of Scientific Research at King Saud University for funding
1. The suggested methodology can be expanded to this work through the Research Project No. NFG-15-03-09.
cover multiple suppliers and assist decision-
makers in determining different quoted quanti- ORCID iDs
ties from each supplier.
2. The suggested methodology can be extended to Mohammed Alkahtani https://orcid.org/0000-0001-7343-
9098
cover multiple layers of criteria.
Abdulrahman Al-Ahmari https://orcid.org/0000-0002-
3. The suggested methodology can be applied to
3079-0141
different selection techniques. Husam Kaid https://orcid.org/0000-0003-3608-013X
18 Advances in Mechanical Engineering

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