Selecting Suppliers Considering Features of 2nd Layer Suppliers by Utilizing FANP Procedure

Abstract

Nowadays, Supply Chain Management (SCM) is a vital issue which companies are forced to deal with. Considering SCM processes, supplier selection is playing a leading role and the affection of supplied raw materials and assembled parts on end users satisfaction cannot be denied as it can influence over both tangible factors such as financial or quality indicators and intangible ones such as the shared knowledge. The main aim of the presented paper is to highlight the importance of the features of second layer suppliers which have been overlooked in supplier selection process. Therefore a new conceptual supplier selection model is developed to select preferred supplier based on two layers or more. The model is solved using Fuzzy Analytic Network Process (FANP) method which is redesigned using a matrix manipulated and has been fed with real data and the results represent that features of second layer suppliers are as important as first layers'.