A New Fuzzy DEA Model for Solving the MCDM Problems in Supplier Selection

Abstract

Supplier selection is a crucial task in supply chain management, and good supply chain management is essential to a company's ability to develop sustainably and gain the trust and satisfaction of its customers. In modern supply chain management, supplier selection often takes the form of a multi-criteria decision-making (MCDM) problem. Thus, to solve this problem, this study formulated a novel fuzzy MCDM model, which is based on the fuzzy data envelopment analysis model. This novel approach can transform the linguistic variables of assessment criteria into well-founded quantitative data for calculation. Moreover, our approach can effectively discriminate between decision-making units (both efficient and inefficient) to aid managers in identifying the most suitable suppliers. We hope that our model can provide scholars and managers with new insights into solving the MCDM problem in supplier selection.