Fuzzy Decision-Making Model for evaluating supplier performance: A case study of a mining company

Abstract

A company's performance depends on the efficiency of its supply chain. In an environment where supply chains become more complex, it is important to evaluate supplier performance.
This process is challenging due to the multiplicity of criteria to be considered and the involvement of several experts with different interpretations and judgments, which classifies it as a multi-criteria decision-making (MCDM) problem.
In order to address this complexity, the objective of this article is to develop a model based on fuzzy logic that will facilitate this evaluation by supporting managers in their decision-making processes related to the qualification or disqualification of suppliers.
To illustrate the application of fuzzy logic, a case study was conducted within a company operating in the mining sector with the aim of evaluating several suppliers on the basis of five evaluation criteria: delivery time, quality, staff behavior, and commitments to quality, hygiene, safety, the environment, and corporate social responsibility. The fuzzy logic model was used to process the evaluations from experts and to calculate the performance level of each supplier.
In order to validate this model, the results of the fuzzy evaluation were compared with those from the company’s original method. The comparison showed that the fuzzy model gives consistent and relevant results that reflect the company’s real practices.
The study shows that fuzzy logic can improve supplier evaluation by handling complex situations and supporting fair and balanced managerial decisions.