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An Evaluation of Supplier Performance based on a Three-Dimensional Fuzzy TOPSIS Framework

This paper proposes a Three-Dimensional Fuzzy TOPSIS framework to evaluate and categorize suppliers according to their cost, quality, and time performances. The concept of our proposed framework is rather simple as it iteratively applies three Fuzzy TOPSIS models to a set of suppliers - one at a time with respect to one key supply chain performance, each with different numbers of criteria. We have then applied this framework to evaluate the performance of a case study company's suppliers, whose business is related to fuel commercial marketing. We find that among 48 initial criteria, only 24 criteria seem to be relevant: 5, 13, 6 criteria in the cost, quality, and time Fuzzy TOPSIS models, respectively. Additionally, all of the 33 suppliers in this study are regarded as performed in terms of quality, but they may vary in terms of cost and service time. In particular, there are six suppliers requiring improvement on either cost or time metric, and only one supplier that needs attentions regarding cost and service time improvement. These results are in-line with expert's opinions as the company has a very stringent quality monitoring system; but, none exists in terms of cost and service time.