Study on Vendor Selection in Service-oriented Manufacturing Based on FAHP

The service-oriented manufacturing, an advanced manufacturing mode integrated with both manufacturing and service, has the characteristics of integration, value increment, innovation and so on. In order to improve competitiveness, core enterprises outsource non-core business to other enterprises. Outsourcing vendor selection is a multi-level, multi-criteria and multi-solution decision-making problem. Considered the fuzziness of decision-making, a new method combined AHP and theory of triangular fuzzy numbers is put forward. The index system for evaluating vendor selection is established by using fuzzy analytical hierarchy process (FAHP). Then a fuzzy judgment matrix based on triangle fuzzy numbers (TFN) is adopted to calculate the relative weights of the chosen evaluation indexes. Finally, a case study is given to validate the feasibility of this method.