Evaluation and selection of resilient suppliers in fuzzy environment: Exploration of fuzzy-VIKOR

Abstract

Purpose

Supply chains (SCs) have become increasingly vulnerable to catastrophic events/disruptions that may be natural or man-made. Hurricanes, tsunamis and floods are natural disasters, whereas man-made disasters may be strikes, terrorist attacks, etc. Failure at any point in the SC network has the potential to cause the entire network to fail. SCs must therefore be properly designed to survive well in the disruption scenario. The capability of successful survival (of the firm’s SC) against those adverse events/happenings is termed as resilience; and, the SC designed under resilience consideration is called a resilient SC. Effective supplier selection is considered as a key strategic consideration in SC management. It is felt that apart from considering traditional suppliers selection criterions, suppliers’ resiliency strategy must be incorporated while selecting a potential supplier which can provide best support to the firm even in the disaster/disruption scenario. The purpose of this paper is to focus aspects of evaluation and selection of resilience supplier by considering general as well as resiliency strategy, simultaneously.

Design/methodology/approach

In this work, subjectivity associated with ill-defined (vague) evaluation information has been tackled through logical exploration of fuzzy numbers set theory. Application of VIKOR embedded with fuzzy mathematics has been utilized here. Sensitivity analysis has been performed to reflect the effect of decision-makers’ (DM) risk bearing attitude in selecting the best potential supplier in a resilient SC. A case empirical example has also been presented.

Findings

The work attempts to focus on a decision-making procedural hierarchy towards effective supplier selection in a resilient SC. The work exhibits application potential of VIKOR method integrated with fuzzy set theory to select potential supplier based on general strategy as well as resiliency strategy. The final supplier selection score (obtained by considering general strategy) and that of obtained by analyzing resiliency strategy have been combined to get a final compromise solution. The decision-support framework thus reported here also considers DMs’ risk bearing attitude.

Practical implications

The study bears significant impact to the industry managers who are trying to adapt resiliency strategy in their SC followed by potential supplier selection in the context of resilient SC.

Originality/value

Exploration of VIKOR embedded with fuzzy set theory towards suppliers’ evaluation and selection by considering general and resiliency criteria both. The decision-support module(s) adapted in this paper considers DMs’ risk bearing attitude to arrive the best compromise solution.

Citation

Sahu, A.K., Datta, S. and Mahapatra, S.S. (2016), "Evaluation and selection of resilient suppliers in fuzzy environment: Exploration of fuzzy-VIKOR", Benchmarking: An International Journal, Vol. 23 No. 3, pp. 651-673. https://doi.org/10.1108/BIJ-11-2014-0109