Integrated Fuzzy AHP and Fuzzy VIKOR Model for Supplier Selection in an Agile and Modular Virtual Enterprise

Abstract

In this ever-changing world, organizations need to outsource parts of their processes for having agile response to market's needs and varying demands. Because of temporal nature of virtual enterprises (VE's), the situation of outsourcing process in this kind of organizations is a vital situation. The main idea of this paper aims to present a decision-making framework for specific area that is appropriated for complex states. Its contribution is developing a fuzzy VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) method and combining it with fuzzy analytic hierarchy process (AHP). This extension suitable for decision-making situations which is faced with mixture appraisement that simultaneously regarded to both ``group utility'' or majority and ``individual regret'' of the opponent. The Integrated and developed model suits to inconsistent conditions that we face to collection of criteria and subcriteria that should satisfy some of them collectively and simultaneously and in other attainment of some individual criteria is desirable. This framework then extended to a case study with varied criteria for outsourcing process.