Supplier Quality Evaluation Using a Fuzzy Multi Criteria Decision Making Approach - Complex System Modelling and Control Through Intelligent Soft Computations - page 197

3. Sensitivity analysis to determine the in fl uence of criteria weights on model

results.
4. Results validation by comparison against another standard approach.

These steps are presented in detail as follows:

3.1 Criteria Selection

The first step involves selection of criteria for evaluating supplier quality. A com-

prehensive literature review review and discussion with departmental quality rep-
resentatives (see the case study), and five academic supply chain experts is formed

to identify the criteria for supplier quality evaluation. Four perspectives are used
namely product quality, process quality, organizational quality and service quality.
The product quality perspective takes into account the quality of the product
whereas the process quality perspective takes into account the quality of processes
used to generate the product. Six criteria are considered from product quality
perspective namely customer satisfaction, environmental considerations, product
features, documentation, product design, and conformance to standards. Five cri-
teria are considered from process quality perspective namely technical capability,
nonconformities/defects generated during production, statistical process control,
and process capability index (Cp > 1.33). The organizational perspective refers to
the incorporation of the quality in organization itself such as in employees and the
service quality refers to the quality of service offered by the suppliers to the buyer
organizations. Four criteria are considered from service quality perspective namely
responsiveness, reliability, flexibility and handling of returned material and war-

ranties and three from organizational perspective namely quality certi

fl

cations,
employee training, and management commitment. A total of 17 criteria are chosen
for supplier quality evaluation from these four perspectives. Table 1 presents these
criteria along with their categories.
It can be seen in Table 1 that but except the eighth criterion, the remaining
criteria are the Bene t (B) category criteria that is the higher the value, the more

preferable the alternative (supplier). The eleventh criteria has the cost (C) category
that is, the lower the value the more preferable the alternative.

3.2 Alternatives Evaluation and Selection Using Fuzzy
TOPSIS

The second step involves allocation of linguistic ratings to the 17 criteria chosen for
evaluating supplier quality and to the potential alternatives (suppliers) with respect
to each criteria. The decision making committee provides linguistic ratings using
scales given in Table 3 to the criteria and using Table 2 to the alternatives. The