The Decision-making Support for Supplier Selection Problems Involving Price Discounts Under Fuzzy Uncertainty Settings: A Single Period Case

In this paper, we consider supplier selection problems in product procurements that involve discount schemes on prices and some parameters, including product demand, product defect rate and product shortage rate, are uncertain in a fuzzy sense environment. We then propose decision-making support via fuzzy optimization models to solve the problems via fuzzy programming by calculating the optimal decisions, i.e. the optimal volume of product procurement from suppliers. With these optimal decisions, the decision-maker is expected to have a minimal total procurement cost. To demonstrate the proposed decision-making support, simulations were performed where the results showed that the proposed model worked well indicated by the derived optimal decisions.