Innovative Multi-Criteria Decision-Making Approach for Supplier Evaluation: Combining TLF, Fuzzy BWM, and VIKOR

Main Article Content

Ikhwan Arief
Dicky Fatrias

Ferry Jie
Armijal Armijal


supplier evaluation, group decision-making, TLF, fuzzy best-worst method, VIKOR


When confronted with underperforming suppliers, the need to evaluate and improve supplier performance becomes apparent. However, the inherent inaccuracies in information introduce complexity, especially when subjective human judgment is involved in the supplier evaluation process. Associated with such problem, this study presents a novel methodology for supplier performance evaluation in the crumb rubber industry, integrating the Taguchi Loss Function (TLF), fuzzy Best-Worst Method (BWM), and VIKOR technique in group decision-making environment. Aimed at addressing the challenges in industries with variable supplier quality and performance, such as the crumb rubber industry in Indonesia, the methodology was empirically tested to demonstrate its practical utility. The process involved identifying evaluation criteria through literature review tailored  to the needs of decision makers (DMs), applying TLF to quantify losses from supplier performance deviations, using fuzzy BWM to determine criteria weights based on the DMs judgment, and employing the VIKOR technique for comprehensive supplier ranking. The findings underscore the methodology's effectiveness in enhancing decision-making, offering a unified metric that accommodates diverse criteria and balances precise data with subjective assessments. This approach simplifies the evaluation process, particularly in situations with conflicting interests among decision-makers. Demonstrating its practical application in the crumb rubber industry, the study highlights the methodology's potential for broader industrial applicability. Future research could explore comparative analyses with other analytical methods, further establishing the methodology's robustness and adaptability in different management contexts. 


Download data is not yet available.


[1] S. Pazhani, J. A. Ventura, and A. Mendoza, "A Serial Inventory System with Supplier Selection and Order Quantity Allocation considering Transportation Costs," Applied Mathematical Modelling, vol. 40, no. 1, pp. 612-634, 2015. DOI: 10.1016/j.apm.2015.06.005
[2] X. Xia and Z. Wu, "Supplier selection with multiple criteria in volume discount environments," Omega, vol. 35, no. 5, pp. 494-504, 2007. [DOI: 10.1016/]
[3] C. H. Glock, E. H. Grosse, and J. M. Ries, "Decision support models for supplier development: Systematic literature review and research agenda," International Journal of Production Economics, vol. 193, pp. 798-812, Nov. 2017. DOI: 10.1016/j.ijpe.2017.09.008
[4] S. M. Wagner, "Supplier development practices: an exploratory study," European Journal of Marketing, vol. 40, no. 5/6, pp. 554-571, 2006. DOI: 10.1108/03090560610648071
[5] N. Banaeian, H. Mobli, B. Fahimnia, I. E. Nielsen, and M. Omid, "Green supplier selection using fuzzy group decision making methods, A case study from the agri-food industry," Computers & Operations Research, vol. 89, pp. 337-347, Jan. 2018. DOI: 10.1016/j.cor.2017.08.015
[6] D. Fatrias and Y. Shimizu, "An Enhanced Two-Phase Fuzzy Programming Model for Multi-Objective Supplier Selection Problem," Industrial Engineering & Management Systems, vol. 11, no. 1, pp. 1-10, 2012. DOI: 10.7232/iems.2012.11.1.001
[7] J. Rezaei, P. B. M. Fahim, and L. Tavasszy, "Supplier selection in the airline retail industry using a funnel methodology: Conjunctive screening method and fuzzy AHP," Expert Systems with Applications, vol. 41, no. 18, pp. 8165-8179, 2014. DOI: 10.1016/j.eswa.2014.07.021
[8] G. Kannan, S. Rajendran, J. Sarkis, and P. Murugesan, "Multi-Criteria Decision Making approaches for Green supplier evaluation and selection: A literature review," Journal of Cleaner Production, vol. 98, pp. 66-83, 2015. DOI: 10.1016/j.jclepro.2014.06.069
[9] R. R. Levary, "Using the analytic hierarchy process to rank foreign suppliers based on supply risks," Computers & Industrial Engineering, vol. 55, no. 2, pp. 535–542, 2008. DOI: 10.1016/j.cie.2008.04.001
[10] W. Y. Wu, H. A. Shih, and H. C. Chan, "The analytic network process for partner selection criteria in strategic alliances," Expert Systems with Applications, vol. 36, no. 3, pp. 4646–4653, 2009. DOI: 10.1016/j.eswa.2008.05.021
[11] G. Bruno, E. Esposito, A. Genovese, and R. Passaro, "AHP-based approaches for supplier evaluation: Problems and perspectives," Journal of Purchasing and Supply Management, vol. 18, no. 3, pp. 159-172, 2012. DOI: 10.1016/j.pursup.2012.06.001
[12] V. Jain, A. K. Sangaiah, S. Sakhuja, N. Thoduka, and R. Aggarwal, "Supplier selection using fuzzy AHP and TOPSIS: a case study in the Indian automotive industry," Neural Computing and Applications, pp. 1-10, 2016. DOI: 10.1007/s00521-016-2617-1
[13] P. Pitchipoo, P. Venkumar, and S. Rajakarunakaran, "Modeling and development of a decision support system for supplier selection in the process industry," Journal of Industrial Engineering International, vol. 9, no. 23, pp. 1-15, 2013. DOI: 10.1186/s40092-013-0023-5
[14] P. Yadav and A. K. Sharma, "Agriculture Credit in Developing Economies: A Review of Relevant Literature," International Journal of Economics and Finance, vol. 7, p. 219, 2015. DOI: 10.5539/ijef.v7n2p219
[15] P. Liu and X. Zhang, "Research on the supplier selection of a supply chain based on entropy weight and improved ELECTRE-III method," International Journal of Production Research, vol. 49, no. 3, pp. 637–646, 2011. DOI: 10.1080/00207543.2010.483280
[16] C. W. Hsu, R. J. Kuo, and C. Y. Chiou, "A multi-criteria decision-making approach for evaluating carbon performance of suppliers in the electronics industry," International Journal of Environmental Science and Technology, vol. 11, no. 3, pp. 775–784, 2014. DOI: 10.1007/s13762-013-0309-0
[17] W. Ho, P. K. Dey, and M. Lockström, "Strategic sourcing: a combined QFD and AHP approach in manufacturing," Supply Chain Management: An International Journal, vol. 16, no. 6, pp. 446-461, 2011. DOI: 10.1108/13598541111170236
[18] F. R. Lima-junior and L. C. R. Carpinetti, "Combining SCOR model and fuzzy TOPSIS for supplier evaluation and management," International Journal of Production Economics, vol. 174, pp. 128-141, 2016. DOI: 10.1016/j.ijpe.2016.01.021
[19] R. K. Mavi, M. Goh, and N. K. Mavi, "Supplier selection with Shannon entropy and fuzzy TOPSIS in the context of supply chain risk management," Procedia - Social and Behavioral Sciences, vol. 235, pp. 216–225, 2016. DOI: 10.1016/j.sbspro.2016.11.028
[20] M. K. Ghorabaee, M. Amiri, E. K. Zavadskas, and J. Antucheviciene, "Supplier evaluation and selection in fuzzy environments: a review of MADM approaches," Economic Research-Ekonomska Istraživanja, vol. 30, no. 1, pp. 1073-1118, 2017. DOI: 10.1080/1331677X.2017.1330683
[21] B. Chang, C. Chang, and C. Wu, "Fuzzy DEMATEL method for developing supplier selection criteria," Expert Systems with Applications, vol. 38, no. 3, pp. 1850–1858, 2011. DOI: 10.1016/j.eswa.2010.08.022
[22] S. V. Parkouhi and A. S. Ghadikolaei, "A resilience approach for supplier selection: Using Fuzzy Analytic Network Process and grey VIKOR techniques," Journal of Cleaner Production, vol. 161, pp. 431-451, 2017. DOI: 10.1016/j.jclepro.2017.04.175
[23] Y-J. Chen, "Structured methodology for supplier selection and evaluation in a supply chain," Information Sciences, vol. 181, no. 9, pp. 1651-1670, 2011. DOI: 10.1016/j.ins.2010.12.021
[24] E. Adali, A. Işık, and K. Kundakcı, "An alternative approach based on Fuzzy PROMETHEE method for the supplier selection problem," Uncertain Supply Chain Management, vol. 4, no. 3, pp. 183-194, 2016.
[25] T. C. Kuo, C. W. Hsu, and J. Y. Li, "Developing a green supplier selection model by using the DANP with VIKOR," Sustainability, vol. 7, no. 2, pp. 1661-1689, 2015. DOI: 10.3390/su7021661
[26] M. Zeydan, C. Çolpan, and C. Çobanoğlu, "A combined methodology for supplier selection and performance evaluation," Expert Systems with Applications, vol. 38, pp. 2741-2751, 2011. DOI: 10.1016/j.eswa.2010.08.114
[27] S. Sharma and S. Balan, "An integrative supplier selection model using Taguchi loss function, TOPSIS and multi-criteria goal programming," Journal of Intelligent Manufacturing, vol. 24, no. 6, pp. 1123–1130, 2013. DOI: 10.1007/s10845-012-0674-7
[28] G. Büyüközkan and G. Çifçi, "A novel hybrid MCDM approach based on fuzzy DEMATEL, fuzzy ANP and fuzzy TOPSIS to evaluate green suppliers," Expert Systems with Applications, vol. 39, no. 3, pp. 3000-3011, 2012. DOI: 10.1016/j.eswa.2011.08.088
[29] D. Dalalah, M. Hayajneh, and F. Batieha, "A fuzzy multi-criteria decision making model for supplier selection," Expert Systems with Applications, vol. 38, no. 7, pp. 8384–8391, 2011. DOI: 10.1016/j.eswa.2010.12.052
[30] H. Gupta and M. K. Barua, "Supplier selection among SMEs on the basis of their green innovation ability using BWM and fuzzy TOPSIS," Journal of Cleaner Production, vol. 152, pp. 242-258, 2017. DOI: 10.1016/j.jclepro.2017.03.091
[31] B. Masoomi, I. G. Sahebi, M. Fathi, F. Yıldırım, and S. Ghorbani, "Strategic supplier selection for renewable energy supply chain under green capabilities (fuzzy BWM-WASPAS-COPRAS approach)," Energy Strategy Reviews, vol. 40, March 2022, 100815. DOI: 10.1016/j.esr.2022.100815
[32] M. Tavana, A. Shaabani, D. Di Caprio, A. Bonyani, "An integrated group fuzzy best-worst method and combined compromise solution with Bonferroni functions for supplier selection in reverse supply chains," Cleaner Logistics and Supply Chain, vol. 2, December 2021, 100009. DOI: 10.1016/j.clsr.2021.100009
[33] M. O. M. Javad, M. Darvishi, A. Or. Javad, "Green supplier selection for the steel industry using BWM and fuzzy TOPSIS: A case study of Khouzestan steel company," Sustainable Futures, vol. 2, 2020, 100012. DOI: 10.1016/j.sftr.2020.100012
[34] H. Aboutorab, M. Saberi, M. R. Asadabadi, O. Hussain, E. Chang, "ZBWM: The Z-number extension of Best Worst Method and its application for supplier development," Expert Systems with Applications, vol. 107, 1 October 2018, Pages 115-125. DOI: 10.1016/j.eswa.2018.05.019
[35] Q. Wu, L. Zhou, Y. Chen, H. Chen, "An integrated approach to green supplier selection based on the interval type-2 fuzzy best-worst and extended VIKOR methods," Information Sciences, vol. 502, October 2019, Pages 394-417. DOI: 10.1016/j.ins.2019.07.072
[36] S. Ordoobadi, "Application of Taguchi loss functions for supplier selection," Supply Chain Management: An International Journal, vol. 14, no. 1, pp. 22–30, 2009. DOI: 10.1108/13598540910931450
[37] T. Taner and J. Anthony, "Applying Taguchi methods to health care," Leadership in Health Services, vol. 19, no. 1, pp. 26-35, 2006. DOI: 10.1108/17511870610652374
[38] T. A. Festervand, R. B. Kethley, and B. D. Waller, "The marketing of industrial real estate: application of Taguchi loss functions," Journal of Multi-Criteria Decision Analysis, vol. 10, no. 4, pp. 219-228, 2001. DOI: 10.1002/mcda.304
[39] R. B. Kethley, B. D. Waller, and T. A. Festervand, "Improving customer service in the real estate industry: a property selection model using Taguchi loss functions," Total Quality Management, vol. 13, no. 6, pp. 739-748, 2002. DOI: 10.1080/09544120120096627
[40] P. Shojaei, S. A. S. Haeri, S. Mohammadi, "Airports evaluation and ranking model using Taguchi loss function, best-worst method and VIKOR technique," Journal of Air Transport Management, pp. 1-10, 2017. DOI: 10.1016/j.jairtraman.2017.09.013
[41] J. Anthony, "Simultaneous Optimisation of Multiple Quality Characteristics in Manufacturing Processes Using Taguchi's Quality Loss Function," The International Journal of Advanced Manufacturing Technology, vol. 17, no. 2, pp. 134–138, 2001. DOI: 10.1007/s001700170148
[42] T. V. Sibalija, S. Z. Petronic, V. D. Majstorovic, R. Prokic-Cvetkovic, and A. Milosavljevic, "Multi-response design of Nd:YAG laser drilling of Ni-based super alloy sheets using Taguchi’s quality loss function, multivariate statistical methods and artificial intelligence," The International Journal of Advanced Manufacturing Technology, vol. 54, no. 5-8, pp. 537–552, 2011. DOI: 10.1007/s00170-010-2941-5
[43] H. Ahmadi, S. Kusi-Sarpong, and J. Rezaei, "Assessing the social sustainability of supply chains using Best Worst Method," Resources, Conservation and Recycling, vol. 126, pp. 99-106, 2017. DOI: 10.1016/j.resconrec.2017.08.011
[44] W. N. K. W. Ahmad, J. Rezaei, S. Sadaghiani, and L. A. Tavasszy, "Evaluation of the external forces affecting the sustainability of oil and gas supply chain using Best Worst Method," Journal of Cleaner Production, vol. 153, pp. 242-252, 2017. DOI: 10.1016/j.jclepro.2017.03.227
[45] G. V. Kaa, L. Kamp, and J. Rezaei, "Selection of biomass thermochemical conversion technology in the Netherlands: A best-worst method approach," Journal of Cleaner Production, vol. 166, pp. 32-39, 2017. DOI: 10.1016/j.jclepro.2017.08.125
[46] S. A. Torabi, R. Giahi, and N. Sahebjamnia, "An enhanced risk assessment framework for business continuity management systems," Safety Science, vol. 89, pp. 201-218, 2016. DOI: 10.1016/j.ssci.2016.05.018
[47] J. Rezaei, J. Wang, and L. Tavasszy, "Linking supplier development to supplier segmentation using Best Worst Method," Expert Systems with Applications, vol. 42, no. 23, pp. 9152-9164, 2015. DOI: 10.1016/j.eswa.2015.08.030
[48] H. Gupta, "Evaluating service quality of airline industry using hybrid best worst method and VIKOR," Journal of Air Transport Management, vol. 68, pp. 35-47, 2018. DOI: 10.1016/j.jairtraman.2017.12.012
[49] J. Rezaei, T. Nispeling, J. Sarkis, and L. Tavasszy, "A supplier selection life cycle approach integrating traditional and environmental criteria using the best worst method," Journal of Cleaner Production, vol. 135, pp. 577-588, 2016. DOI: 10.1016/j.jclepro.2016.07.058
[50] G. Sen and Z. Haoran, "Fuzzy best-worst multi-criteria decision-making method and its applications," Knowledge-Based Systems, vol. 121, pp. 23-31, 2017. DOI: 10.1016/j.knosys.2017.01.029
[51] S. Opricovic, "Multicriteria Optimization of Civil Engineering Systems," Faculty of Civil Engineering, Belgrade, vol. 2, no. 1, pp. 5-21, 1998.
[52] S. Opricovic and G. H. Tzeng, "Extended VIKOR method in comparison with outranking methods," European Journal of Operation Research, vol. 178, no. 2, pp. 514-529, 2007. DOI: 10.1016/j.ejor.2006.01.020
[53] R. N. Kackar, "Off-line quality control, parameter design and the Taguchi method," Journal of Quality Technology, vol. 17, no. 4, pp. 176–188, 1985.