Supplier selection problem in fuzzy environment considering risk factors

Supplier selection is one of the most important and challenging issue in supply chain management and is usually tackled with multi-criteria decision making (MCDM) methods. Considering sustainability, the complexity of the supplier selection problem has increased in recent years, yet, the various sustainability criteria. However, these criteria are usually considered independent of each other. Therefore, in this paper, to take into account the interdependency among criteria, Fuzzy Cognitive Maps (FCM) have been used. Moreover, supply chains are susceptible to various endogenous and exogenous risks which need to be considered in the decision-making processes in order to meet market needs and sustainability requirements. In order to integrate risks into the decision problem, fuzzy axiomatic design approach with risk factors (RFAD) has been utilized. The proposed method is applied to a case study adapted from literature.