A collaborative approach of multi agent and fuzzy system for supplier selection

Abstract

Supplier selection is the practice by which firms identify, evaluate, and contract with suppliers. The supplier selection practice deploys a significant amount of a manufacture s financial resources. In return, manufacturer expects significant benefits from contracting with suppliers offering high value. As Today the average Indian manufacturer spends roughly half its revenue to purchase goods and services. This makes a company s success dependent on their interactions with suppliers. To survive in the intensely competitive global economy, it is often critically important to not only develop existing suppliers but also to discover new suppliers. This research work outlines the process of finding viable new suppliers. Selection of a supplier is a complex process since the selection is based on several factors. The proposed research work combines the multi agent, CASE base and fuzzy decision making technique for supplier selection. Finally this integrated model is illustrated by an example in an existing manufacturing to validate the proposed model. By applying the concept of risk factor analysis, ranking values of supplier are converted in final pricing model to set segmented price.