Supplier selection in electronic marketplaces using satisficing and fuzzy AHP

Supplier selection is a critical and demanding task for companies that participate in electronic marketplaces to find suppliers and to execute electronically their transactions. This paper is aimed to suggest a fresh approach for decision support enabling effective supplier selection processes in electronic marketplaces. We introduce an evaluation method with two stages: initial screening of the suppliers through the enforcement of hard constraints on the selection criteria and final supplier evaluation through the application of a modified variant of the Fuzzy Preference Programming (FPP) method. The proposed method alleviates the information overload effect that is inherent in the environment of electronic marketplaces, facilitates an easier elicitation of user preferences through the reduction of necessary user input (i.e. pairwise comparisons) and reduces computational complexity, in terms of the number of linear programs to be solved, in comparison with the original FPP method. The FPP method is adopted and modified accordingly in order to tackle the issue of inconsistency/uncertainty of human preference models. Our approach is demonstrated with the example of a hypothetical metal manufacturing company that finds and selects suppliers in the environment of an electronic marketplace. 2009 Elsevier Ltd. All rights reserved.