Presentation of A New Approach for Selecting the Best Supplier Using Failure Mode and Effects Analysis and Fuzzy Analytic Hierarchy Process: A Case Study of A Pharmaceutical Company
Abstract
Supplier selection has long been one of the most challenging issues in Supply Chain optimization. This issue makes a company's success largely dependent on selecting an appropriate supplier. Supplier selection is a highly complex, multi-person, group decision-making process that can improve priority evaluation through systematic, logical approaches. This process is usually carried out based on group inputs from individuals working in different functional areas within the organization. This study demonstrates how the Fuzzy Analytic Hierarchy Process (F-AHP) can be effectively integrated with the Failure Mode and Effects Analysis (FMEA) approach and applied to select the best supplier in a Supply Chain risk environment. The F-AHP approach determines the relative weight of each criterion, while the FMEA technique calculates the Risk Priority Number (RPN) for each criterion and its corresponding subcriteria in the supplier selection problem. Sobhan Pharmaceutical Company was selected as a case study to implement the proposed approach, and the results indicate improved performance across various criteria.
Keywords:
Supplier selection, Fuzzy analytic hierarchy process, Failure mode and effects analysisReferences
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