Supplier Performance Evaluation Based On Fuzzy Logic

Purpose – This paper describe the development of the fuzzy logic model approach to supply chain and its value for managers by illustrating its application to supplier performance appraisals. Design/methodology/approach – Measuring supplier performance possesses the properties of multi-dimension and multi-scale, it increases the complexity of the aggregation and assessment process. A focal company must develop an effective procedure for overcoming the complexity of performance measurement. Performance evaluations of supplier are not easy; many criteria and standards that are involved should be considered. In reality, supplier selection is the essence of supply chain management; mean while, assessment of supply performance becomes the main activity of supplier selection. An extensive literature review provided the framework for the model development in this research. Supplier performance evaluations represent a critically important decision that often involves subjective information. Models and heuristic techniques that focus on the use of different types of information are available; however, with few exceptions, the models are not robust enough to be applied in a practical, managerially useful manner. Fuzzy logic models provide a reasonable solution to these common decision situations. Findings – The results demonstrate that the Fuzzy logic can be a powerful tool for managers to evaluating the suppliers’ performance. The flexibility of the model allows the decision maker to introduce vagueness, uncertainty, and subjectivity into the supplier performance evaluation system. Research limitations/implications – Limitations that could lead to future research include primary issue, Future research in this area is needed to develop a method for relating supplier performance values to linguistic variables in supplier performance evaluation, as well as testing the sensitivity of supplier performance values and their impact on the outcome Practical implications – In addition, This research calls attention to an alternative method of the supplier performance evaluation system. Originality/value – This paper provides a simple-to-use fuzzy logic model for establishing a more meaningful supplier performance evaluation system, and to help uncover ways to improve the success of supplier selection. Article Type – Research paper