A strategic model using structural equation modeling and fuzzy logic in supplier selection
Supplier selection attained the state of paramount importance for companies in the current scenario because of increasing global competition. Improper selection of suppliers will have an adverse impact on the overall performance of the company. The number of available alternatives in the current market is on a rise, and hence it becomes difficult to select a supplier from among a large lot. An attempt has been made to develop a new composite model using structural equation modeling and fuzzy analytic hierarchy process technique, based on the results of a survey of 151 respondents. Based on the criteria that influence the selection of suppliers, the model has been developed. The study also examines the supplier selection criteria and measures the supplier selection score using the developed model.
fuzzy analytic hierarchy process structural equation modeling (sem) sensitivity analysis