Supplier selection and order allocation based on fuzzy SWOT analysis and fuzzy linear programming

Supplier selection is a multi criteria decision-making problem that comprises tangible and intangible factors. The majority of previous supplier selection techniques do not consider strategic perspective. Besides, uncertainty is one of the most important obstacles in supplier selection. In this paper, quantified SWOT is applied in the context of supplier selection for the first time. SWOT (Strengths, Weaknesses, Opportunities and Threats) is one of the most well-known techniques for conducting a strategic study. In addition, the fuzzy logic and triangular fuzzy numbers are integrated with SWOT analysis - as a novel innovation - to deal with vagueness of human thought. SWOT analysis can consider both qualitative and quantitative criteria. The managers can understand the position of suppliers in a competitive environment with a glance at SWOT matrix. Moreover, a fuzzy linear programming model is proposed to determine how much should be purchased from each supplier. It is supposed that the demand is a fuzzy number. Besides, the capacity of warehouse is considered as a constraint. A case study is utilized concurrently to show the efficiency of the proposed model. (C) 2010 Elsevier Ltd. All rights reserved.