Modelling procedure for the selection of steel pipes supplier by applying fuzzy AHP method

  • Edmundas Kazimieras Zavadskas Vilnius Gediminas Technical University, Institute of Sustainable Construction, Faculty of Civil Engineering, Lithuania
  • Zenonas Turskis Vilnius Gediminas Technical University, Institute of Sustainable Construction, Faculty of Civil Engineering, Lithuania
  • Željko Stević University of East Sarajevo, Faculty of Transport and Traffic Engineering Doboj, Bosnia and Herzegovina
  • Abbas Mardani Informetrics Research Group, Ton Duc Thang University, Vietnam and Faculty of Business Administration, Ton Duc Thang University, Vietnam
Keywords: fuzzy AHP, optimization, supplier selection

Abstract

The aim of this research is the evaluation and selection of suppliers by applying the fuzzy multi-criteria analysis. The study used fuzzy Analytic Hierarchy Process (FAHP) to choose the optimal supplier for the purchase of materials necessary for the production of pre-insulated pipes. Decision-makers selected among five suppliers based on nine criteria: material cost, pipe length, delivery time, type of payment, transport distance, quality, reliability, flexibility and relationship with customers. Effective execution of procurement, in this case, the procurement of material needed for the production logistics subsystem, influences the overall efficiency of the business. It is vital to make the right decision when selecting a supplier, because the optimal choice ensures lower cost and higher quality of the product itself, and therefore more competitiveness in the market.

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Published
2020-07-03
How to Cite
Kazimieras Zavadskas, E., Turskis, Z., Stević, Željko, & Mardani, A. (2020). Modelling procedure for the selection of steel pipes supplier by applying fuzzy AHP method. Operational Research in Engineering Sciences: Theory and Applications, 39-53. Retrieved from https://oresta.rabek.org/index.php/oresta/article/view/53
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Articles