Evaluation and ranking of suppliers with fuzzy DEA and PROMETHEE approach

Abstract

Supplier selection is a multi-Criteria problem. This study proposes a hybrid model for supporting the suppliers' selection and ranking. This research is a two-stage model designed to fully rank the suppliers where each supplier has multiple Inputs and Outputs. First, the supplier evaluation problem is formulated by Data Envelopment Analysis (DEA), since the regarded decision deals with uncertainly and ambiguity of data as well as experts and manager linguistic judgment the proposed model is equipped with Fuzzy approach, then in this research we use of Fuzzy DEA for first stage. In the second stage, efficient suppliers are ranked with Preference Ranking Organization Method for Enrichment Evaluation (PROMETHEE) model. Fuzzy DEA PROMETHEE ranking does not replace the DEA classification model; rather it furthers the analysis by providing full ranking in DEA context for efficient suppliers.