A possibility distribution‐based multicriteria decision algorithm for resilient supplier selection problems

Abstract

Thus far, limited research has been performed on resilient supplier selection-a problem that requires simultaneous consideration of a set of numerical and linguistic evaluation criteria, which are substantially different from traditional supplier selection problem. Essentially, resilient supplier selection entails key sourcing decision for an organization to gain competitive advantage. In the presence of multiple conflicting evaluation criteria, contradicting decision makers, and imprecise decision relevant information (DRI), this problem becomes even more difficult to solve with the classical optimization approaches. Possibility distribution based Multi-Criteria Decision Analysis (MCDA) is a viable alternative approach for handling inherent uncertainty of imprecise DRI associated with the evaluation offered by a group of contradicting decision makers. However, prior research focusing on MCDA based supplier selection problem has been lacking in the ability to provide a seamless integration of numerical and linguistic evaluation criteria along with the consideration of multiple decision makers. To address these challenges, we present a comprehensive decision-making framework for ranking a set of suppliers from resiliency perspective. The proposed algorithm is capable of leveraging imprecise and aggregated DRI obtained from crisp numerical assessments and reliability adjusted linguistic appraisals from a group of decision makers. We adapt two popular tools -Single Valued Neutrosophic Sets (SVNS) and Interval-valued fuzzy sets (IVFS), and for the first time extend them to incorporate both crisp and linguistic evaluations in a group decision making platform to obtain aggregated SVNS and IVFS decision matrix. This information is then used to rank the resilient suppliers by using TOPSIS method. We present a case study to illustrate the mechanism of the proposed algorithm. A sensitivity analysis demonstrates the strength of the proposed algorithm to generate alternative ranking scheme with respect to the priorities of evaluation criteria, and thus shows the potential to provide a reliable decision-making framework.

Resilient supplier selection in logistics 4.0 with heterogeneous information

“…The comprehensive reliability is computed by the product of the two index, and the reliability-based membership function are fused using Dempster's combination rule (Dempster, 1967;Wen et al, 2017). The numerical examples provided by Jiang et al (2018) verified the effectiveness of the reliability modification approach in membership functions.…”

“…It is true that the existing research have shown promising potential of MCDA methods and fuzzy techniques in supplier selection problems (Gan et al, 2019;Haldar et al, 2012Haldar et al, , 2014Hasan, Shohag, Azeem, Paul, & Management, 2015;Jiang, Faiz, & Hassan, 2018). However, there are limitations of the state-of-the-art literatures: (i) to the best of our knowledge, no existing research extends F-MADM framework in supplier evaluation problems leveraging large number of information (time series and graphical information), (ii) no prior study investigated F-MADM approach for evaluating suppliers' performance from resilience and logistics 4.0 perspective, simultaneously, and (iii) it is not clear how fuzzy based TOPSIS can be extended to process inherent uncertainty in decision relevant information associated with both the quantitative and qualitative attributes.…”

“…It is true that the existing research have shown promising potential of MCDA methods and fuzzy techniques in supplier selection problems (Gan et al, 2019;Haldar et al, 2012Haldar et al, , 2014Hasan, Shohag, Azeem, Paul, & Management, 2015;Jiang, Faiz, & Hassan, 2018). However, there are limitations of the state-of-the-art literatures: (i) to the best of our knowledge, no existing research extends F-MADM framework in supplier evaluation problems leveraging large number of information (time series and graphical information), (ii)…”

How Do the Criteria Affect Sustainable Supplier Evaluation? - A Case Study Using Multi-Criteria Decision Analysis Methods in a Fuzzy Environment

“…Supplier evaluation is an important decision-making problem that strongly affects the quality, efficiency and reliability of a supply chain [14]. There are often complex problems encountered in the selection of suppliers, including the many criteria against which suppliers can be evaluated, of which, some can be very specific.…”

Multi-criteria decision-making approach for selecting a structural system of an industrial facility

“…Furthermore, the decision problem involves weighting several structural system alternatives against these conflicting criteria, which becomes more complicated when evaluation is done by multiple decision makers. Multi-criteria decision making (MCDM) methods are one of the most promising approaches used to solve these complex decision problems (Jiang et al 2019).…”