%0 Journal Article
%T Evaluation of Cost-Effectiveness Criteria in Supply Chain Management: Case Study
%A Reza Rostamzadeh
%A Mahdi Sabaghi
%A Ahmad Esmaili
%J Advances in Decision Sciences
%D 2013
%I Hindawi Publishing Corporation
%R 10.1155/2013/873534
%X The aim of this paper is to evaluate and prioritize the proposed cost-effectiveness criteria in supply chain management using fuzzy multiple attribute decision-making (MADM) approach. Over the past few years, the determination of suitable cost-effectiveness criteria in the supply chain has become a key strategic issue. However, the nature of these kinds of decisions is usually complex and unstructured. Many quantitative and qualitative factors must be considered to determine the suitable criteria. As the human decision-making process usually contains fuzziness and vagueness, a hierarchy of MADM model based on fuzzy-sets theory is used in this research. Using a fuzzy analytic hierarchy process (FAHP), the weights of criteria and subcriteria are determined and then the final ranking is determined by technique for order preference by similarity to ideal solution (TOPSIS). Finally, fuzzy TOPSIS (FTOPSIS) is employed to compare the results with classic TOPSIS. This paper concludes that the subcriteria in all the items are in the same rank. 1. Introduction Supply chain plays a critical role for a company to gain competitive advantage, since the supply chain affects customer service, inventory and distribution costs, and response to the ever-changing markets directly. Furthermore, this role becomes more critical in today¡¯s distributed manufacturing environment in which companies focus on core competencies and outsource supportive tasks which in turn create large supply networks. In an international marketplace, an increasingly tough competition results in a company¡¯s attempt to find strategies which give them more competitive advantage than their rivals [1]. In fact, the competition is among supply chains, not companies [2]. Typically, supply chain inventory management studies are classified into three stages, which are supply, production, and distribution [3]; however, the main focus is usually placed on the coordination between only two of them. The main objective of this research is to propose a systematic evaluation model which eases the way for manufacturing companies to select and find the most important cost-effective criteria in supply chain management (SCM) under fuzzy multievaluator and multicriteria environment. Hence, this study utilizes multicriteria decision-making method to determine the importance weights of evaluation criteria in linguistic terms parameterized with triangular fuzzy numbers. This approach is employed for four reasons: (a) it is rational and understandable; (b) the computation processes are straightforward; (c) the concept
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