an integrated fcm and fuzzy soft set for supplier selection problem based on risk evaluation

11
An integrated FCM and fuzzy soft set for supplier selection problem based on risk evaluation Zhi Xiao, Weijie Chen , Lingling Li School of Economics and Business Administration, Chongqing University, Chongqing 400044, PR China article info Article history: Received 3 September 2010 Received in revised form 30 August 2011 Accepted 1 September 2011 Available online 16 September 2011 Keywords: Supplier selection Risk evaluation Fuzzy cognitive map Particle swarm optimization Fuzzy soft set abstract Supplier selection problem, considered as a multi-criteria decision-making (MCDM) prob- lem, is one of the most important issues for firms. Lots of literatures about it have been emitted since 1960s. However, research on supplier selection under operational risks is limited. What’s more, the criteria used by most of them are independent, which usually does not correspond with the real world. Although the analytic network process (ANP) has been proposed to deal with the problems above, several problems make the method impractical. This study first integrates the fuzzy cognitive map (FCM) and fuzzy soft set model for solving the supplier selection problem. This method not only considers the dependent and feedback effect among criteria, but also considers the uncertainties on deci- sion making process. Finally, a case study of supplier selection considering risk factors is given to demonstrate the proposed method’s effectiveness. Ó 2011 Elsevier Inc. All rights reserved. 1. Introduction Supply chains have become major elements in the global economy. Nowadays, the competition among enterprises has evolved into the competition among the supply chains. But supply chains expose to different kinds of risks that increase along with increasing globalization. Therefore, supply chains risk management (SCRM) is a field of escalating importance and is aimed at developing approaches to the identification, assessment, analysis and treatment of areas of vulnerability and risk in SC [1]. The research on supplier risk is one of important areas of supply chains risk. An effective supplier assess- ment and selection process is essential for improving the performance of a focal company and its supply chains [2]. So the supplier selection problem taking risk evaluation into consideration is greatly meaningful. Although the evaluation of supplier risk has begun to draw considerable attention, research on supplier selection under operational risks is limited. Huang and Chen [3] discussed a possible Risk Breakdown Structure (RBS) for virtual enter- prises and suggested a risk evaluation method. Then they applied the proposed risk evaluation method to the partner selection problem. Wu and Olson [4] considered three types of vendor selection methodologies in supply chains with risk: chance constrained programming (CCP), data envelopment analysis (DEA) and multi-objective programming (MOP) mod- els. Wu et al. [5] proposed a fuzzy multi-objective programming model to decide on supplier selection taking risk factors into consideration. Various models are available to select supply chain partners. In the existing research on supplier selection models, the criteria used by most of them are independent, but the dependent and feedback effects are often overlook. The expert system developed by Vokurka et al. [6] captured the previous supplier selection process in a knowledge base, which 0307-904X/$ - see front matter Ó 2011 Elsevier Inc. All rights reserved. doi:10.1016/j.apm.2011.09.038 Corresponding author. Tel.: +86 15826179572. E-mail address: [email protected] (W. Chen). Applied Mathematical Modelling 36 (2012) 1444–1454 Contents lists available at SciVerse ScienceDirect Applied Mathematical Modelling journal homepage: www.elsevier.com/locate/apm

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An Integrated FCM and Fuzzy Soft Set for Supplier Selection Problem Based on Risk Evaluation

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Page 1: An Integrated FCM and Fuzzy Soft Set for Supplier Selection Problem Based on Risk Evaluation

Applied Mathematical Modelling 36 (2012) 1444–1454

Contents lists available at SciVerse ScienceDirect

Applied Mathematical Modelling

journal homepage: www.elsevier .com/locate /apm

An integrated FCM and fuzzy soft set for supplier selection problem basedon risk evaluation

Zhi Xiao, Weijie Chen ⇑, Lingling LiSchool of Economics and Business Administration, Chongqing University, Chongqing 400044, PR China

a r t i c l e i n f o

Article history:Received 3 September 2010Received in revised form 30 August 2011Accepted 1 September 2011Available online 16 September 2011

Keywords:Supplier selectionRisk evaluationFuzzy cognitive mapParticle swarm optimizationFuzzy soft set

0307-904X/$ - see front matter � 2011 Elsevier Incdoi:10.1016/j.apm.2011.09.038

⇑ Corresponding author. Tel.: +86 15826179572.E-mail address: [email protected] (W. Chen).

a b s t r a c t

Supplier selection problem, considered as a multi-criteria decision-making (MCDM) prob-lem, is one of the most important issues for firms. Lots of literatures about it have beenemitted since 1960s. However, research on supplier selection under operational risks islimited. What’s more, the criteria used by most of them are independent, which usuallydoes not correspond with the real world. Although the analytic network process (ANP)has been proposed to deal with the problems above, several problems make the methodimpractical. This study first integrates the fuzzy cognitive map (FCM) and fuzzy soft setmodel for solving the supplier selection problem. This method not only considers thedependent and feedback effect among criteria, but also considers the uncertainties on deci-sion making process. Finally, a case study of supplier selection considering risk factors isgiven to demonstrate the proposed method’s effectiveness.

� 2011 Elsevier Inc. All rights reserved.

1. Introduction

Supply chains have become major elements in the global economy. Nowadays, the competition among enterprises hasevolved into the competition among the supply chains. But supply chains expose to different kinds of risks that increasealong with increasing globalization. Therefore, supply chains risk management (SCRM) is a field of escalating importanceand is aimed at developing approaches to the identification, assessment, analysis and treatment of areas of vulnerabilityand risk in SC [1]. The research on supplier risk is one of important areas of supply chains risk. An effective supplier assess-ment and selection process is essential for improving the performance of a focal company and its supply chains [2]. So thesupplier selection problem taking risk evaluation into consideration is greatly meaningful.

Although the evaluation of supplier risk has begun to draw considerable attention, research on supplier selection underoperational risks is limited. Huang and Chen [3] discussed a possible Risk Breakdown Structure (RBS) for virtual enter-prises and suggested a risk evaluation method. Then they applied the proposed risk evaluation method to the partnerselection problem. Wu and Olson [4] considered three types of vendor selection methodologies in supply chains with risk:chance constrained programming (CCP), data envelopment analysis (DEA) and multi-objective programming (MOP) mod-els. Wu et al. [5] proposed a fuzzy multi-objective programming model to decide on supplier selection taking risk factorsinto consideration.

Various models are available to select supply chain partners. In the existing research on supplier selection models, thecriteria used by most of them are independent, but the dependent and feedback effects are often overlook. The expertsystem developed by Vokurka et al. [6] captured the previous supplier selection process in a knowledge base, which

. All rights reserved.

Page 2: An Integrated FCM and Fuzzy Soft Set for Supplier Selection Problem Based on Risk Evaluation

Z. Xiao et al. / Applied Mathematical Modelling 36 (2012) 1444–1454 1445

can be used to suggest selection criterion for future supplier selection process. Kokangul and Susuz [7] applied an inte-gration of analytical hierarchy process and non-linear integer and multi-objective programming under some constraintsto determine the best suppliers. Cakravastia et al. [8] developed an analytical model of mixed-integer programming forthe supplier selection process in designing a supply chain network. Choy et al. [9] described a knowledge-based supplierselection and evaluation system, which was a case-based reasoning decision support system for outsourcing operations atHoneywell Consumer Products (Hong Kong) limited in China. Bevilacqua et al. [10] proposed a fuzzy quality functiondeployment (QFD) approach to support supplier selection. Chen et al. [11] presented a fuzzy model to determine theranking order of all suppliers according to the concept of the TOPSIS. Seydel [12] used DEA to tackle the supplier selectionproblem. Ha and Krishnan [13] applied an integrated approach in an auto parts manufacturing company for supplierselection.

Based on the assumption of preferential independence, above the methods can be seen that the dependence and thefeedback effects cannot be considered. However, the real-life situation usually emerges the dependence and the feedbackeffects simultaneously while making decision. Agarwal and Shankar [14] proposed an analytic network process (ANP) toevaluate alternatives that provided the route of performance improvement in supply chain. Gencer and Gurpinar [15] pro-posed an ANP model to tackle the supplier selection problem. Although the interrelationships among criteria were consid-ered in the selection process, two main problems should be highlighted as follows [16]. The first is the problem ofcomparison. Sometimes it is hard for experts to compare the important degree of an index to another. Furthermore, thekey for the ANP is to determine the relationship structure among features in advance [17]. The different structure resultsin the different priorities. However, it is usually hard for the decision maker to give the true relationship structure by con-sidering many criteria.

As we know, due to the problem with compound and interaction effects, it is hard for decision makers to make a gooddecision using the simple weighted method. In order to deal with the problem, we use FCM to find the weights of criteria,which not only can overcome the preferential independent and but also can overcome the shortcomings of ANP.

Moreover, in practice decision-making on supplier selection problem includes a high degree of fuzziness and uncertain-ties. Molodtsove [18] initiated the concept of soft set theory, which is a new mathematical tool for dealing with uncertain-ties. Fuzzy soft set has rich potential for applications in several directions. In the present paper, we firstly apply fuzzy softsets in supply chains.

This paper attempts to develop a novel evaluation framework to select supplier considering risk. We first integrate FCMand fuzzy soft set for solving supplier selection problem. The structure of integrated method is shown in Fig. 2. First, theweights of criteria/attributes can be effectively captured by FCM, which not only considers the dependence and the feed-back effects among criteria but also can overcome the shortcomings of ANP. Second, in order to compensate for FCMmethod’s dependence for expert advice in the reasoning process, we use PSO algorithm to train fuzzy cognitive mapsand obtain the weight of each criterion. Finally, fuzzy soft set is formulated and solved to identify the best partner.The major advantages of combining FCM with fuzzy soft set are that the evaluation can account for the interdependencyof criteria/attributes and the uncertainties in decision making process. Such a combination was rarely seen in literaturebefore.

The remainder of the paper is organized as follows. Section 2 introduces the basic principles of FCM, PSO and fuzzy softset. The proposed model is presented in Section 3. Section 4 illustrates the procedures in the proposed system using anumerical example. Finally, conclusions are drawn in Section 5.

2. Theoretical background

In this section, we briefly review basic theoretical background on fuzzy cognitive maps, particle swarm optimization algo-rithm and fuzzy soft set, respectively.

2.1. The basic theory of fuzzy cognitive maps

Fuzzy cognitive maps (FCMs), introduced by Kosko [19], extend the idea of cognitive maps [20] by suggesting the use offuzzy causal functions taking numbers in [�1,1] in concept maps. Recently, FCM have been widely employed in the appli-cation of political decision making [21], fault detection [22], process control [23], data mining in internet [24], medical deci-sion system [25], modeling LMS critical success factors [26]. But to date, few studies have adopted FCMs in supply chains. Inthis paper, we first apply the FCM in evaluation supplier considering the risk factors.

FCMs are soft computing tools, which combine elements of fuzzy logic and neural networks. Strictly speaking, fuzzy cog-nitive map is a directed cyclic graph composed by the nodes and edges. Nodes of the map are commonly known as the con-cepts, indicating the main features, nature or attributes of the system. The edges between nodes can show the various causalrelationships. Fig. 1 illustrates a simple FCM, where each concept node Ci in fuzzy cognitive map corresponds to a conceptvalue Ai 2 [0,1], and the edges between the nodes correspond to a value, showed by the connection weight wij, in the interval[�1,1]. The weights correspond to the three main situations: positive, negative and zero, indicating that the concepts of po-sitive correlation, negative correlation and not related respectively, and the absolute values reflect the extent of the impactbetween the concepts.

Page 3: An Integrated FCM and Fuzzy Soft Set for Supplier Selection Problem Based on Risk Evaluation

1c 2c

3c

4c5c

12w

32w

34w

41w

45w

15w51w

Fig. 1. A simple fuzzy cognitive map.

1446 Z. Xiao et al. / Applied Mathematical Modelling 36 (2012) 1444–1454

The values of the weights can be organized in a matrix,

The reasoning process of FCM can be expressed as [27]:

Aðkþ1Þi ¼ f AðkÞi þ

XN

j¼1;j–i

AðkÞj wji

!: ð1Þ

Among them, Aðkþ1Þi is the value of concept Ci at simulation step kþ 1; AðkÞj is the value of concept Cj at simulation step k; wji is

the weight of the interconnection between concept Cj and Ci; f is a threshold function, which is used to ensure the node con-cept value in the interval [0,1]. The threshold function f can be bivalent (f(x) = 0 or 1), trivalent (f(x) = �1, 0 or 1), tangenthyperbolic (f(x) = tanh(x)) or the unipolar sigmoid function (f(x) = 1/(1 + e�cx)), where c > 0 determines the steepness ofthe continuous function f. The sigmoid function is typically used when the concept interval is [0,1]. Hyperbolic functionis used when concepts can be negative and their values belong to the interval [�1,1]. Thus the selection of threshold functiondepends on the description of concepts.

If the reasoning process achieves one of the following three states, one has reached a steady state, and ends the iteration:output concept value has stabilized at a fixed value; changes of the values have shown signs of cyclical; chaotic state hasappeared, that is, the concept value is uncertain and random.

2.2. The particle swarm optimization

Eberhart and Kennedy [28] first proposed Particle Swarm Optimization (PSO) in 1995. PSO is a stochastic population-based optimization algorithm, which belongs to the class of swarm intelligence algorithms.

Assume a D-dimensional search space, S � RD, and a swarm consisting of M particles. Also let xi = (xi1,xi2, . . . ,xiD)T 2 S bethe ith particle in the swarm, and its velocity is Vi = (vi1,vi2, . . . ,viD)T. Suppose that the best position ever encountered bythe ith particle is Pi = (pi1,pi2, . . . ,piD)T 2 S. Assume that gi is the index of the particle that attained the best position amongall the individuals in the neighborhood of the ith particle. The swarm is update by the equations [29]:

Viðt þ 1Þ ¼ v ViðtÞ þ c1r1ðpiðtÞ � XiðtÞÞ þ c2r2ðpgiðtÞ � XiðtÞÞ� �

; ð2ÞXiðt þ 1Þ ¼ XiðtÞ þ Viðt þ 1Þ; ð3Þ

where i = 1,2, . . . ,M. c1 and c2 are called cognitive and social parameters, respectively. r1 and r2 are randomly numbers uni-formly distributed within [0,1]. gi is the index of the particle that attained either the best position of the whole swarm (glo-bal version) or the best position in the neighborhood of the ith particle (local version) v is called constriction factor and iscalculated as follows: v ¼ 2k

2�/�ffiffiffiffiffiffiffiffiffiffiffi/2�4/p�� �� where / = c1 + c2, / > 4 and k = 1 are considered the most common values due to their

good average performance.

2.3. Fuzzy soft set

The soft set which was initiated by Molodtsov [18], as a new mathematical tool can deal with uncertainties. In recentyears, research on soft set theory has become active, great progress has been achieved in the theoretical aspect. At the sametime, there has been some progress concerning practical applications of soft set theory, especially the use of soft sets in deci-

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Table 1An example of fuzzy soft sets.

U ‘Blackish’ ‘Reddish’ ‘Green’

h1 0.4 1 0.5h2 0.6 0.5 0.6h3 0.5 0.5 0.8h4 0.8 1 0.8h5 1.0 0.7 0.7

Z. Xiao et al. / Applied Mathematical Modelling 36 (2012) 1444–1454 1447

sion making. Maji and Roy [30] introduced the definition of reduct-soft-set and described the application of soft set theory toa decision-making problem. Mushrif et al. [31] proposed a new classification algorithm of the natural textures, which wasbased on the notions of soft set theory. Zou and Xiao [32] presented data analysis approaches of soft set under incompleteinformation. Roy and Maji [33] proposed a novel method of object recognition from an imprecise multi-observer data and adecision making application of fuzzy soft sets. Although the algorithm was proved incorrect by Kong et al. [34], fuzzy softsets and multi-observer concepts are valuable to successive researchers. Feng et al. [35] presented an adjustable approachto fuzzy soft set based decision making and gave some illustration. Jiang et al. [36] presented an adjustable approach to intui-tionistic fuzzy soft sets based decision making by using level soft sets of intuitionistic fuzzy soft sets.

Definition 2.1 [33]. Let PðUÞ be the set of all fuzzy subsets in an initial universe U. Let E be a set of parameters and A � E. Apair eF ;A� �

is called a fuzzy soft set over U, where eF is a mapping given by

eF : A! PðUÞ: ð4Þ

Example 1. Consider fuzzy soft sets (F,A) over the universal U = {h1,h2,h3,h4,h5}, in which U represents the set of houseA = {blackish,reddish,green}, and

FðblackishÞ ¼ h1=0:4; h2=0:6;h3=0:5;h4=0:8; h5=1f g;FðreddishÞ ¼ h1=1; h2=0:5;h3=0:5;h4=1; h5=0:7f g;FðgreenÞ ¼ h1=0:5;h2=0:6;h3=0:8; h4=0:8;h5=0:7f g:

Also, we can express it in a tabular form in Table 1.

Definition 2.2 [37]. Let U be an initial universe and E be a set of parameters, a pair fF; E� �

is called an interval-valued fuzzysoft set over U, where fF is a mapping given by

fF : E! ePðUÞ: ð5Þ

Example 2. Consider interval fuzzy soft sets (F,A) over the universal U = {h1,h2,h3,h4,h5}, in which U represents the set ofhouse A = {blackish,reddish,green}. The tabular representation of an interval-valued fuzzy soft set fF;A

� �is shown in Table 2.

In Table 2, we can see that the precise evaluation for each object on each parameter is unknown while the lower and upperlimits of such an evaluation are given.

3. The proposed model in supplier selection

In this section, we first integrate FCM and fuzzy soft set to solve supplier selection problem considering risk factors. TheFCM which consider dependence and interactions among criteria is utilized in finding criteria weights, and the fuzzy soft setas a new mathematical tool which can deal with uncertainties, is first used to identify the best partner in this paper.

According to the below mentioned factors, a new approach based on integrate method is to evaluate and select suppliers.

� Several criteria and alternatives can be evaluated with the scope of the decision problem.� Both objective and subjective risk factors can take into consideration in the decision problem.� There exist the dependence and feedback among criteria.

Assume that A = {A1,A2, . . . ,Am} is a discrete set of m possible partner alternatives, and C = {C1,C2, . . . ,Cn} is a set of n attri-butes of partners. Inspired by Yu and Tzeng [16] and Kong et al. [34], we present a new algorithm based on FCM and fuzzysoft set. The system framework is illustrated in Fig. 2, while the detailed procedures are as follows:

Step 1: Form a committee of decision-makers, and then identify the evaluation criteria.Step 2: Compare the importance among criteria to derive the local weight vector using the eigenvalue approach.

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Table 2An interval-valued fuzzy soft sets fF;A

� �.

U ‘Blackish’ ‘Reddish’ ‘Green’

h1 [0.3,0.6] [0.9,1.0] [0.4,0.7]h2 [0.5,0.7] [0.4,0.6] [0.4,0.8]h3 [0.4,0.6] [0.3,0.6] [0.7,0.9]h4 [0.7,0.9] [0.9,1.0] [0.7,1.0]h5 [0.9,1.0] [0.6,0.8] [0.6,0.8]

Fig. 2. The system of framework.

1448 Z. Xiao et al. / Applied Mathematical Modelling 36 (2012) 1444–1454

Step 3: Depict the fuzzy cognitive maps to indicate the influence among criteria by the experts.Step 4: Learn the weights using PSO algorithm and calculate formula (1) to obtain the steady-state matrix.

There are many risk factors that affect the enterprise in supply chain partnership, and supply chain part-nership risk is the possibility of deviation of supply chain from management objectives.When concepts can be negative and their values belong to the interval [�1,1] as in our case, functionf(x) = tanh(x) = (1 � e�x)/(1 + e�x) is used.The objective function used in this algorithm is defined as follows [38]:

FðWÞ ¼Xm

i¼1

H Aminouti� Aouti

� �Amin

outi� Aouti

��� ���þXm

i¼1

H Aouti� Amax

outi

� �Amax

outi� Aouti

��� ���; ð6Þ

where H is the well-known Heaviside function:

HðxÞ ¼0; x < 0;1; x P 0

�ð7Þ

and Aouti; i� 1;2; . . . ;m is the steady values of the output concepts, which is obtained through the application of the proce-

dure of formula (1). Aminouti6 Aouti

6 Amaxouti; i ¼ 1; . . . ;m is predetermined by the experts, which are crucial for the proper oper-

ation of the modeled system.

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Z. Xiao et al. / Applied Mathematical Modelling 36 (2012) 1444–1454 1449

In the FCM, the particles in the swarm are defined as follows: xi = (w12, . . . ,w1N,w21, . . . ,w2N,wN1, . . . ,wNN�1). Actually, the ithparticle is made of the rows of the ith candidate connation matrix, excluding the elements of its main diagonal as they are bydefinition equal to zero. Thus, an FCM corresponds to a N(N � 1) dimensional minimization problem. The application of PSOfor training fuzzy cognitive maps can be shown in Fig. 3.

Step 5: Derive the global weight vector. In order to derive the global weights, we should first normalize the localweight vector (z) and the steady-state matrix (W⁄) as follows:

zn ¼1k

z ð8Þ

and

W�n ¼

1c

W�; ð9Þ

where k is the largest element of z and c is the largest row sum of W⁄. Then, we can obtain the global weight vector by usingthe following weighting equation:

w ¼ zn þW�nzn: ð10Þ

Step 6: Construct the resultant weight interval-valued fuzzy soft set weF� �; E

� �and compute the ideal-thresholdgideal

ððweF Þ;EÞ of weF� �; E

� �[39].

Step 7: Calculate the deviation and then obtain the final fuzzy soft sets eD; E� �.

Step 8: Calculate

cij ¼Xm

k¼1

ðfik � fjkÞ; ð11Þ

where the membership value of object Ai for the kth parameter is fik, m is the number of parameters, and compute therelative score of Ai,

8i; si ¼Xm

j¼1

cij: ð12Þ

Then the decision is Ak if sk = minsi, the smaller si is, the smaller risk is.

Fig. 3. Flow chart of the proposed learning procedure.

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1450 Z. Xiao et al. / Applied Mathematical Modelling 36 (2012) 1444–1454

4. A numerical example

Assume that a manufacturing company desires to select a suitable material supplier to purchase the key components ofnew products. A decision-making group is formed which consists of the experts from each strategic decision area. In thisstudy, the key factors for assessing the risk of supplier are derived from literature reviews [40,41]. Detailed discussion onevery criterion, the criteria of evaluation has been identified, which is shown in Table 3. After preliminary screening, threecandidates (s1,s2,s3) remain for further evaluation.

Step 1: Form a committee of decision-makers, and then identify the evaluation criteria, which are shown in Table 3.Step 2: Compare the importance among criteria to derive the local weight vector using the eigenvalue approach,

which are shown in Table 4.Step 3: Since a criterion may have interaction effects with other criteria, we then depict the FCM to indicate the

influence among criteria, which is shown in Fig. 4.Assume that the experts have suggested the initial weights for the FCM model, which are shown in thefollowing connection matrix:

winitial ¼

0 0 0 0 0 0 0 0 �0:48 0 0 0 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0:11 0

0:80 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0 0 0:38 0 0 0 0 0

0 0:54 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0:50 0 0 0 0 0:32 0 0 0 0 0

0 0 0 0 0:63 0 0 0 0 0 0 0 0 0

0 0 0 0 0 0 0:45 0 0 0 0:75 0 0 0:68

0 0 0 0 0 0 0 0 0 0 0 0:26 0 0

0 0 0 0 0 0 0 0 0 0 0 0:68 0 0

0 0 0 0 0 0 0 0 0 0 0 0:75 0 0

0 0 0 0 0 0 0 0 0 0 0 0 0:21 0

0 0:30 0 0 0 0 0:45 0 0:52 0 0:23 0 0 0

0 0 0:62 0:56 0 0:48 0 0 0 0 0 0 0 0

26666666666666666666666666666666666666664

37777777777777777777777777777777777777775

:

There is a consensus among the experts regarding the direction of the arcs among the concepts. For each weight, the rangesof the weights are also determined by the experts as follows:

Table 3Supplier selection criteria.

Quality risk of the product Rejection rate of the product c1

On-time delivery rate c2

Product qualification ratio c3

Remedy for quality problem c4

Service risk Response to changes c5

Technological and R&D support c6

Ease of communication c7

Supplier’s profile risk Financial status c8

Customer base c9

Performance history c10

Production facility and capacity c11

Long-term cooperation risk Supplier’s delivery ratio c12

Management level c13

Technological capability c14

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Table 4The judgment matrix of the supplier’s criteria.

c1 c2 c3 c4 c5 c6 c7 c8 c9 c10 c11 c12 c13 c14 Local weights

c1 1 1/3 1/2 2 1/4 2 1/2 2 3 1/2 1/5 1/2 3 1/5 0.1186c2 3 1 1/3 3 2 4 2 5 5 3 1/2 3 5 1/3 0.2955c3 2 3 1 5 3 5 3 7 6 4 3 4 5 2 0.5540c4 1/2 1/3 1/5 1 1/3 2 1/3 3 2 1/3 1/4 1/2 2 1/5 0.0914c5 4 1/2 1/3 3 1 4 2 5 5 2 1/3 3 4 1/3 0.2572c6 1/2 1/4 1/5 1/2 1/4 1 1/3 3 2 1/3 1/5 1/3 2 1/6 0.0761c7 2 1/2 1/3 3 1/2 3 1 5 4 2 1/3 3 4 1/3 0.2098c8 1/2 1/5 1/7 1/3 1/5 1/3 1/5 1 1/2 1/4 1/5 1/4 1/2 1/6 0.0462c9 1/3 1/5 1/6 1/2 1/5 1/2 1/4 2 1 1/4 1/5 1/3 1/2 1/6 0.0540c10 2 1/3 1/4 3 1/2 1/2 1/2 4 4 1 1/3 2 3 1/4 0.1540c11 5 2 1/3 4 3 5 3 5 5 3 1 4 5 1/2 0.4021c12 2 1/3 1/4 2 1/3 3 1/3 4 3 1/2 1/4 1 3 1/4 0.1353c13 1/3 1/5 1/5 1/2 1/4 1/2 1/4 2 2 1/3 1/5 1/3 1 1/6 0.0627c14 5 3 1/2 5 3 6 3 6 6 4 2 4 6 1 0.5046

Fig. 4. FCM for supplier risk factors.

Z. Xiao et al. / Applied Mathematical Modelling 36 (2012) 1444–1454 1451

�0:50 6 w19 6 �0:38; 0:13 6 w2;13 6 0:32; 0:75 6 w3;1 6 0:89; 0:33 6 w4;9 6 0:40;0:48 6 w52 6 0:64; 0:46 6 w6;4 6 0:58; 0:28 6 w6;9 6 0:40; 0:58 6 w7;5 6 0:70;0:39 6 w8;7 6 0:56; 0:70 6 w8;11 6 0:83; 0:63 6 w8;14 6 0:72; 0:22 6 w9;12 6 0:33;0:62 6 w10;12 6 0:73; 0:71 6 w11;12 6 0:80; 0:19 6 w12;13 6 0:27; 0:26 6 w13;2 6 0:36;0:40 6 w13;7 6 0:50; 0:46 6 w13;9 6 0:58; 0:19 6 w13;11 6 0:31; 0:56 6 w14;3 6 0:68;0:50 6 w14;4 6 0:62; 0:43 6 w14;6 6 0:53:

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Table 5The ratings of the selectors.

U c1 c2 c3 c4 c5 c6 c7

s1 [0.01,0.05] [0.94,1.00] [0.97,1.00] [0.91,0.98] [0.90,0.98] [0.85,0.92] [0.87,0.97]s2 [0.02,0.04] [0.91,0.99] [0.97,1.00] [0.91,0.99] [0.93,0.97] [0.88,0.92] [0.86,0.95]s3 [0.01,0.04] [0.93,0.97] [0.96,1.00] [0.94,0.99] [0.92,0.98] [0.84,0.91] [0.85,0.96]

U c8 c9 c10 c11 c12 c13 c14

s1 [0.85,0.90] [0.87,0.93] [0.93,0.98] [0.88,0.95] [0.56,0.81] [0.80,0.88] [0.90,0.96]s2 [0.86,0.91] [0.87,0.92] [0.91,0.97] [0.90,0.95] [0.52,0.80] [0.79,0.88] [0.89,0.97]s3 [0.84,0.92] [0.86,0.91] [0.94,0.99] [0.87,0.94] [0.66,0.80] [0.77,0.86] [0.90,0.95]

1452 Z. Xiao et al. / Applied Mathematical Modelling 36 (2012) 1444–1454

The desired regions for the output concepts, which are crucial for the proper operation of the modeled system, have beendefined by the experts as follows in Table 5:

Step 4: The updated weight matrix obtained using PSO learning is

W� ¼0 0 0 0 0 0 0 0 �0:5200 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0:2000 0

0:7000 0 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0:52000 0 0 0 0 00 0:6000 0 0:6200 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0:5300 0 0 0 0 00 0 0 0 0:7500 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0:3952 0 0 0 0:8600 0 0 0:79000 0 0 0 0 0 0 0 0 0 0 0:1500 0 00 0 0 0 0 0 0 0 0 0 0 0:5500 0 00 0 0 0 0 0 0 0 0 0 0 0:6500 0 00 0 0 0 0 0 0 0 0 0 0 0 0:3000 00 0:4200 0 0 0 0 0:5600 0 0:6000 0 0:3200 0 0 00 0 0:7500 0:4800 0 0:5800 0 0 0 0 0 0 0 0

266666666666666666666666666664

377777777777777777777777777775

:

Step 5: According to the formulas (8)–(10), we can obtain the global weight vector

W 0 ¼ ½0:0251;0:0722; 0:1423;0:0252; 0:0890;0:0216;0:0728;0:1079;0:0153;0:0456;0:1066;0:0346;0:0621;0:1797�:

Compare the total weights with the initial weights, as shown below Table 6:Table 6 shows that fuzzy cognitive map evaluation index system by reasoning, reflects the interrelation among indexes, so allthe weights of evaluation indexes have changed.

Step 6: Construct the resultant weight interval-valued fuzzy soft sets weF� �; E

� �and compute the ideal-thresholdgideal

ððweF Þ;EÞ of weF� �; E

� �.

According to the Table 7, we can compute the ideal-threshold gidealððweF Þ;EÞ as follows:

gidealððweF Þ;EÞ ¼ ððw1c1; ½0:0003;0:0010�Þ;ðw2c2; ½0:0679;0:0722�Þ;ðw3c3; ½0:1380;0:1423�Þ;ðw4c4; ½0:0237;0:0249�Þ;

ðw5c5; ½0:0828;0:0872�Þ;ðw6c6; ½0:0190;0:0199�Þ;ðw7c7; ½0:0633;0:0706�Þ;ðw8c8; ½0:0928;0:0993�Þ;ðw9c9; ½0:0133;0:0142�Þ;ðw10c10; ½0:0429;0:0451�Þ;ðw11c11; ½0:0959;0:1013�Þ;ðw12c12; ½0:0228;0:0280�Þ;ðw13c13; ½0:0497;0:0546�Þ;ðw14c14; ½0:1617;0:1743�ÞÞ:

Step 7: Calculate the deviation and then obtain the final fuzzy soft set eD; E� �.

Step 8: According to the Table 8, calculate cij ¼Pm

k¼1ðfik � fjkÞ and using the formulas (11) and (12), we can obtainthe final choice values: s1 = �0.0052; s2 = �0.0022; s3 = 0.0074.

According to the final score, the most desirable supplier is s1 and supplier s2 is the next recommended alternative. Thus,based on fuzzy cognitive maps and fuzzy soft sets established supplier evaluation model is feasible and reasonable.

5. Conclusions

A process for evaluating potential suppliers must consider the risk of disruption to the manufacturer’s assembly operationassociated with the characteristics of the potential supplier [42]. Our paper differs from the previous studies in that we takerisk into consideration. What’s more, we focus on the dependence and the feedback effects among criteria and uncertaintieson the decision-making process.

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Table 6The compare of the local weight and global weight of index.

c1 c2 c3 c4 c5 c6 c7

L 0.0400 0.0998 0.1871 0.0309 0.0868 0.0257 0.0708G 0.0251 0.0722 0.1423 0.0252 0.0890 0.0216 0.0728

c8 c9 c10 c11 c12 c13 c14

L 0.0156 0.0182 0.0520 0.1358 0.0457 0.0212 0.1704G 0.1079 0.0153 0.0456 0.1066 0.0346 0.0621 0.1797

Note: L denotes the local weight; G denotes the global weight.

Table 7The resultant weight interval-valued fuzzy soft set weF� �

; E� �

.

w1c1 w2c2 w3c3 w4c4 w5c5 w6c6 w7c7

s1 [0.0003,0.0013] [0.0679,0.0722] [0.1380,0.1423] [0.0229,0.0247] [0.0801,0.0872] [0.0184,0.0199] [0.0633,0.0706]s2 [0.0005,0.0010] [0.0657,0.0715] [0.1380,0.1423] [0.0229,0.0249] [0.0828,0.0863] [0.0190,0.0199] [0.0626,0.0692]s3 [0.0003,0.0010] [0.0671,0.0700] [0.1366,0.1423] [0.0237,0.0249] [0.0819,0.0872] [0.0181,0.0197] [0.0619,0.0699]

w8c8 w9c9 w10c10 w11c11 w12c12 w13c13 w14c14

s1 [0.0917,0.0971] [0.0133,0.0142] [0.0424,0.0447] [0.0938,0,1013] [0.0194,0.0280] [0.0497,0.0546] [0.1617,0.1725]s2 [0.0928,0.0982] [0.0133,0.0141] [0.0415,0.0442] [0.0959,0.1013] [0.0180,0.0277] [0.0491,0.0546] [0.1599,0.1743]s3 [0.0906,0.0993] [0.0132,0.0139] [0.0429,0.0451] [0.0927,0.1002] [0.0228,0.0277] [0.0478,0.0534] [0.1617,0.1707]

Table 8The final fuzzy soft set eD; E� �

.

U e1 e2 e3 e4 e5 e6 e7

S1 0.0003 0.0000 0.0000 0.0008 0.0027 0.0006 0.0000S2 0.0002 0.0023 0.0000 0.0008 0.0009 0.0000 0.0016S3 0.0000 0.0023 0.0014 0.0000 0.0009 0.0009 0.0016

U e8 e9 e10 e11 e12 e13 e14

S1 0.0024 0.0000 0.0006 0.0021 0.0034 0.0001 0.0018S2 0.0011 0.0001 0.0017 0.0001 0.0048 0.0006 0.0018S3 0.0022 0.0003 0.0001 0.0033 0.0003 0.0022 0.0036

Z. Xiao et al. / Applied Mathematical Modelling 36 (2012) 1444–1454 1453

This study first presents a multi-criteria decision making model for evaluation supplier using FCM and fuzzy soft sets.FCM is used to depict the dependence and feedback among criteria which can overcome the preferential independent andthe shortcomings of ANP. In order to compensate for FCM method’s dependence for expert advice in the reasoning process,this article introduces the PSO learning algorithm for training FCM. Fuzzy soft sets as a new mathematical tool can deal withuncertainties. A numerical example for selecting the most appropriate supplier is presented to examine the practicality ofthe proposed model. This proposed approach is not only novel but sufficiently general to be applied under various settings,thus it can help firms to measure and select the optimal suppliers in supply chains management. Also the integrated methodcan be extended to the analysis of other decision problems. Hybrid methods integrated with fuzzy soft set theory approachcan be considered as a topic for future research.

Acknowledgements

The authors gratefully acknowledge the support of the Ministry of Education, Humanities Social Sciences fund plan pro-jects, China (10XJA630010). We would like to express our sincere appreciation to the Editor of this journal and the anony-mous reviewers for their insightful comments, which have greatly aided us in improving the quality of the paper.

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