Abstract
Considering the globalization and the global economy, companies need to make strategic decisions in the furniture sector, as in many other sectors. In today's competitive conditions, supply chain management plays a major role in the success of firms and ensuring their sustainability in the sector. Therefore, companies need to work with suitable suppliers to be successful in supply chain management. There are many different methods used in the literature for evaluating suppliers. Fuzzy analytic hierarchy process (FAHP) method, which is one of the multi-criteria decision-making (MCDM) methods, is widely used in supplier selection problems. This study aimed to determine the best suppliers of a furniture production company in Turkey using the FAHP. In the study, four suppliers of the company were evaluated according to price, quality, delivery, innovativeness, and reliability criteria. As a result of the application, the ranking of the suppliers was made, and the best supplier selected.
TopLiterature Review
There are many methods for supplier selection in the literature (Kuo et al., 2010; Mardani et al., 2015). MCDM methods are widely used in supplier selection (Mardani et al, 2015; Supçiller and Deligoz, 2018). In the literature, it is possible to come across studies using MCDM methods in supplier selection (Tam and Tummala, 2001; Hou and Su, 2006; Kang and Lee, 2010; Chen, Pai and Hung, 2010; Chen, 2011; Bruno et al, 2012; Kuo and Lin, 2012; Rezai and Ortt, 2013; Kasirian and Yusuff, 2013; Dou, Zhu and Sarkis, 2014, Mardani et al., 2015 Kara, Köleoğlu and Gürol, 2016; Amindoust and Saghafinia, 2017). It is possible to find out many studies in which suppliers are selected in different sectors. Some of these studies carried out using the FAHP method are given in Table 1.
Key Terms in this Chapter
Supplier Selection: It is defined as the selection of raw materials, equipment, and services from where and what amount in a service or product producing firm.
Multi-Criteria Decision Making (MCDM): When it comes to evaluating multiple criteria together in a decision problem, such decision making problems are examined under the name of multi-criteria decision making problem. Multi-criteria decision-making methods are widely used in supplier selection.
Globalization: Globalization can be expressed as the concentration of the world. It can involve various political, economic, and socio-cultural changes.
Supply Chain Management: It is defined as an integrated system that enables planning and management of the service and information flow as a whole during the production, logistics and marketing processes in a firm.