Fuzzy hierarchical TOPSIS for supplier selection

This study simplifies the complicated metric distance method [L.S. Chen, C.H. Cheng, Selecting IS personnel using ranking fuzzy number by metric distance method, Eur. J. Operational Res. 160 (3) 2005 803–820], and proposes an algorithm to modify Chen’s Fuzzy TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) [C.T. Chen, Extensions of the TOPSIS for group decision-making under fuzzy environment, Fuzzy Sets Syst., 114 (2000) 1–9]. From experimental verification, Chen directly assigned the fuzzy numbers 1̃ and 0̃ as fuzzy positive ideal solution (PIS) and negative ideal solution (NIS). Chen’s method sometimes violates the basic concepts of traditional TOPSIS. This study thus proposes fuzzy hierarchical TOPSIS, which not only is well suited for evaluating fuzziness and uncertainty problems, but also can provide more objective and accurate criterion weights, while simultaneously avoiding the problem of Chen’s Fuzzy TOPSIS. For application and verification, this study presents a numerical example and build a practical supplier selection problem to verify our proposed method and compare it with other methods. 2008 Elsevier B.V. All rights reserved. * Corresponding author. Tel.: +886 5 5342601x5312; fax: +886 5 531 2077. E-mail addresses: [email protected] (J.-W. Wang), [email protected] (C.-H. Cheng), [email protected] (K.-C. Huang).