Application of Fuzzy Analytical Hierarchy Process and Quality Function Deployment Techniques for Supplier's Assessment

Document Type: Original Manuscript

Authors

1 Faculty of Industrial and Mechanical Engineering, Qazvin Branch, Islamic Azad University, Qazvin, Iran.

2 Department of Mechanical Engineering, University of Alberta, Edmonton, Alberta, Canada.

10.22094/joie.2020.27.1

Abstract

Abstract
Vendor Selection Problem (VSP) has been considered in this paper as an integrated method of Fuzzy Analytic Hierarchy Process (FAHP) and Quality Function Deployment (QFD) in the pharmaceutical company. In QFD method, determining the importance of the "weights" for the customer requirements is an essential and crucial issue. FAHP has been used to determine the importance of the "weights" for Product Designing which incorporates the four important attributes in a pharmaceutical company namely Cost, Standing Supplier, Delivery Time and Quality. The new approach can improve the imprecise ranking of customer requirements and provides a decision tool that facilitates the vendor selection. The most significant advantage of this integrated method is using it as a self-evaluation tool in the organization to determine weaknesses and strengths, so it can help researchers to solve this specific subject for supplier’s selection.

Graphical Abstract

Application of Fuzzy Analytical Hierarchy Process and Quality Function Deployment Techniques for Supplier's Assessment

Highlights

  • Vendor selection problem (VSP) has been treated in this paper as a ‘‘Fuzzy Analytic hierarchy process and Quality Function Deployment model was used for Vendor Selection Problem in pharmaceutical company’’. In the Quality Function Deployment (QFD) process, determining the importance of the "weights" for the customer requirements is an essential and crucial process .The Fuzzy Analytic Hierarchy Process (FAHP) has been used to determine the importance of the "weights" for product planning which incorporates the four important criteria in a pharmaceutical company namely cost, supplier's standing, delivery time and quality. The new approach can improve the imprecise ranking of customer requirements and provides a decision tool that facilitates the vendor selection, especially for a pharmaceutical company. The most significant advantage of this model is using it as a self-evaluation tool in the organization to determine their weaknesses and improvements, thus it can help researchers to solve this specific problem of suppliers selection.

Keywords


Akao,Y.(1995) Quality Function Deployment: Integrating Customer Requirements into Product Design, Productivity Press Inc.

Akarte, M., Surendra, N. & Ravi, B. (2010) Web based casting supplier evaluation using analytical hierarchy process, Journal of the Operational Research Society,15, 511–522.

Alinezhad, A.,  Esfandiari, N., & Seif, A.  (2013). Supplier evaluation &selection with QFD & FAHP in a harmaceutical company , int.j.Adv.Manuf.Technology, 68, 355-364.

Alinezhad, A. & Esfandiari, N. (2012).Sensitivity Analysis in QUALIFLEX and VIKOR Method. Journal of optimization in Industrial Engineering (OIE), 10, 29-34.

Alinezhad, A. & Amini. M. (2011). Sensitivity Analysis of TOPSIS Technique: the Result of
Change in the Weight of one attribute on the Final Ranking of Alternatives. Journal of optimization in Industrial Engineering (OIE), 7, 23-28.

Alinezhad, A. & Khalili, J. (2019).New Methods and Applications in Multiple Attribute Decision Making (MADM).Springer Publications.115-120.

Alinezhad, A., Makui, A. & Kianimavi, R. (2007).An inverse DEA model for inputs/outputs estimation with respect to decision maker’s preferences: the case of Refah bank of Iran. Journal of Mathematical Sciences (JMS), 1, 61-70.

Bevilacqua, M., Ciarapica, F. & Giacchetta, G. (2010). A fuzzy-QFD approach to supplier selection, Journal of Purchasing & Supply Management, 12, 14–27.

Chan, L. & Wu, M.(2015). A systematic approach to quality function deployment with a full illustrative example, Omega, 33, 119–139.

Chan, F. (2003). Interactive selection model for supplier selection process: an analytical hierarchy process approach, International Journal Production Research, 41, 3549–3579.

Chan, F. & Chan, H.(2004).Development of the supplier selection model – a case study in the advanced technology industry, Proceedings of the Institution of Mechanical Engineers Part B, Journal of Engineering Manufacture, 12, 1807–1824.

Chan, F., Kumar, N. & Tiz,M.(2007).Global supplier selection: a fuzzy-AHP approach, International Journal of Production Research, 46,3825–3857.

Chang, D.(2010). Applications of the Extent Analysis Method on Fuzzy-AHP, European Journal of Operational Research, 95, 649-655.

Chen, C. & Huang, S. (2015). A fuzzy approaches for supplier evaluation and selection in supply chain management. International Journal of Production Economics, 102, 289–301.

Chen, C., & Wang, S. (2009).The critical factors of success for information service industry in developing international market, Using analytic hierarchy process (AHP) approach, Graduate Institute of Industrial and Business Management, National Taipei University of Technology, 3, 41-43, Taiwan.

Cheung, O., Lam,T. & Leung, M. (2011). An Analytical hierarchy process based procurement selection method, Construction management and Economics, 1, 427-437.

De Boer, L., Labro,E & Morlucchi, P. (2001). Impact of rising fuel cost on perishable product procurement, Production and Operations Management, 23, 30-40.

De Boer, L., Labro, E. & Morlacchi, P. (2012). A review of methods supporting supplier selection, European Journal of Purchasing and Supply Management, 7, 75-89.

Dikmen, M. & Birgonul,T. (2005). Strategic use of quality function deployment (QFD) in the construction industry, Building and Environment, 40, 245–255.

Faris,C., Robinson, P. & Wind,Y.(2015). The buy grid framework as a generic conceptual model for buying processes of organizations, Industrial Buying and Creative Marketing.

Ghodsypour, H. & Brien, C. (2014). The total cost of logistics in supplier selection, under conditions of multiple sourcing, multiple criteria and capacity constraint, International Journal of Production Economics, 73, 15-27.

Hines, P., Rich, N. & Hittmeyer,M.(2015). Competing against ignorance: Advantage through knowledge, International Journal of Physical Distribution & Logistics Management, 28, 18-43.

Holt, H. (2005).Supplier selection and controlling using multivariate analysis, International Journal of Physical Distribution and Logistics Management,15,40-52.

Hou, J., EJB,D & MVC,S. (2007). oriented supplier selection system for mass customization, Journal of Manufacturing Technology Management, 18, 54–71.

Kahraman,C., Cebeci,U & Ulukan,Z.(2010). Multi-criteria supplier selection using Fuzzy AHP.Logistics Information Management, 16, 382–394.

Karpak, B., Kumcu,E & Kasuganti, R. (2012). Purchasing materials in the supply chain: managing a multi-objective task. European Journal of Purchasing and Supply Management 7, 209–216.

Kaufmann,A., Gupta,M.(2010).Introduction to Fuzzy Arithmetic: Theory and Applications. Van Nostrand Reinhold, New York.

Liu, F. & Hai, H. (2005). The voting analytic hierarchy process method for selecting supplier, International Journal of Production Economics, 97, 308-317.

Mandal, A., Deshmukh, S. (2014).Vendor selection using Interpretive Structural Modelling (ISM).International Journal of Operations & Production Management, 14, 29-52.

Mirmozaffari, M.P. &  Alinezhad, A. (2017).Window Analysis Using Two-stage DEA in Heart Hospitals. International Conference on Innovation in Science, Engineering Computer and Technology (ISECT'2017) Dubai (UAE) Oct.17-19.

Muralidharan, C., Anantharaman, N. & Deshmukh,S.(2011).A multi-criteria group decision-making model for supplier rating, Journal of Supply Chain Management, 38, 22–33.

Narasimhan, R., Talluri,S & Mendez, D.(2014). Supplier evaluation and rationalization via data envelopment analysis: an empirical examination, Journal of Supply Chain Management, 37, 28–37.

Oboulhas, K. (2009). Applications of real option analysis to vendor selection process in IT outsourcing, International Journal of Information Systems and Change Management, 25, 30-51.

Plaarhoven, J. & Pedrycz,W. (2016). A fuzzy extension of Saaty's priority theory, fuzzy sets and system, 11, 229-241.

Saaty,T. (1980). The Analytic Hierarchy Process: Planning, Priority Setting, Resource Allocation, McGraw-Hill.

Sarrafha, K.., Kazemi, A. & Alinezhad, A. (2014).A multi-objective evolutionary approach for
integrated production-distribution planning problem in a supply chain network.
Journal of optimization in Industrial Engineering (OIE), 14, 89-102.

Talluri, S. & Baker, R. (2013). A multi-phase mathematical programming approach for effective supply chain design, European Journal of Operational Research, 141, 544–558.

Tolga, E., Demircan, M. & Kahraman, C. (2005).Operating System Selection using Fuzzy Replacement Analysis and Analytic Hierarchy Process, International Journal of Production Economics, 97, 89-117.

Zadeh, L.(1965). Fuzzy sets Information and control, 338-353.

Zimmermann, H. (1996). Fuzzy sets, Operations research, Kluwer Academic Publisher.