A methodology for supplier selection under the curse of dimensionality problem based on fuzzy quality function deployment and interval data envelopment analysis.

Abstract

Supplier selection is an important decision-making problem, which involves many quantitative and qualitative factors incorporating vagueness and imprecision. This study proposes a novel fuzzy multi-criteria decision-making framework for supplier selection, which integrates quality function deployment (QFD) and interval data envelopment analysis (DEA). The proposed methodology allows for considering the relationships among the product features and supplier evaluation criteria (SEs) and the impacts of inner dependence among SEs by constructing a house of quality (HOQ). Considering that the number of supplier evaluation indicators is greater than the number of suppliers in some cases, the curse of dimensionality problem usually exists. To solve this problem, we combine the HOQ, interval DEA models, and forward-stepwise selection approach to screen supplier evaluation indicators and select the best supplier(s). Through the two-stage supplier selection method, we can achieve the double screening of indicators and determine the final supplier(s). Finally, the application of the proposed framework is demonstrated through a numerical example and a sensitivity analysis is also carried out to verify the stability of the proposed methodology. This study focuses on supplier selection based on the combination of fuzzy QFD and interval DEA, and also provide a new two-phase methodology for DEA indicator screening.