Using Fuzzy Neural Networks and Analytic Hierarchy Process for Supplier Classification in e-Procurement

Electronic procurement is frequently defined as the sourcing of goods or services via electronic means, usually through the internet. A major process in the e-procurement decision making is that of supplier selection process. In the real world, the criteria and constraints for such a process are subjective in nature. In this study, the criteria for supplier selection, which already have been established empirically, has been adopted and no new criteria for the same has been proposed. These criteria and constraints have been modeled using fuzzy logic into constraints, which further has been modeled as a multi-objective decision making process, by combining neural networks and analytic hierarchy process. Then the suppliers have been classified into suitable suppliers and unsuitable suppliers, from the viewpoint of the firm.