An integrated fuzzy strategic supplier selection approach for considering the supplier integration spectrum

The majority of the published supplier/vender selection (VS) literature obtained optimal solutions based on the operational metrics. The evaluation criteria of VS must be in alignment with a firm's strategy. This work considers strategic and operational factors with the consideration of supplier integration spectrum (SIS) to secure the efficacy of VS on the initial product stage. This study adopts supplier's manufacturing process capability indices (PCIs) and process yields as operational (hygiene) factors to estimate their quality capabilities while the business process-oriented criteria related with the performance of business process improvement (BPI) are suggested as the strategic (motivation) criteria for a supplier assessment visit. A fuzzy approach then aggregates the total scores of individual suppliers with the considerations of the strategic factors' extra effect on the operational metrics and the supplier integration levels objectively. An empirical case study is performed to demonstrate the efficacy of the proposed system and to identify the best potential supplier(s). The conclusions and conducting processes of the case study also provide interesting managerial implications.