MODEL FOR THE SUPPLY CHAIN MANAGEMENT BASED ON THE INTERVAL TYPE-2 FUZZY NUMBERS AND THE TOPSIS METHOD

Danijela Tadic and Aleksandar Djordjevic

Faculty of Engineering, University of Kragujevac, Kragujevac, The Republic of Serbia

The Performance improvement that leads to an increase in business efficiency, both for the enterprises integrated in the supply chain and the entire supply chain, represents one of the basic strategic management problems. A solution to this problem, among other things, can be obtained by measuring and improving the performance of the supply chain, which simultaneously represents the basic purpose of this research study. The relative importance of performances and the values of their key performance indices are assessed by decision-makers. Their assessments are described by linguistic variables, which are modelled by interval fuzzy numbers type-2. The relative importance of performance is obtained by defining the fuzzy matrix of the relative importance of each pair of performances. The weight values of performances are calculated by means of the eigenvector method. Performance values are calculated by using the fuzzy middle-value operator. The rank of the enterprises, with respect to all of the considered performances as well as their weights, is determined by applying conventional TOPSIS. The ranking of the enterprises integrated in the supply chain can be marked as the main result of the research. On the basis of the obtained rank, appropriate measures can be taken to improve the performance of those enterprises that are rated the worst by respecting all the observed performances. The proposed model has been tested on the real life data from the automotive supply chain operating in Central Serbia.

Keywords: supply chain performance, interval type-2 fuzzy numbers, fuzzy AHP, TOPSIS, management measures

JEL Classification: C69, L62