Distance-Based Fuzzy MCDM Methods for a Supplier Selection Decision-Making Model

Making the decision to select the best suppliers is a critical process within a company as it impacts all aspects from upstream to downstream. However, this decision-making process is often challenging due to the involvement of multiple factors and suppliers. Multiple criteria decision-making (MCDM) methods are commonly proposed to address this issue. In this study, two MCDM methods, namely fuzzy technique for order of preference by similarity to ideal solution (FTOPSIS) and fuzzy evaluation based on distance from average solution (FEDAS), were chosen to select suppliers and were tested on a small-scale retail company in Indonesia. These two methods are categorized as distance-based MCDM methods that have been widely applied due to their practical capabilities. In this decision-making model, five criteria have been identified: service (C
1
), delivery (C2), quality of product (C3), price of product (C4), and production capacity (C
5
), involving three suppliers. By using the best-worst method (BWM), the most important criterion was C4, with a weight of 0.503. The comparison results of both methods recommended Supplier A as the best supplier. FTOPSIS and FEDAS indicate significant performance scores for the best supplier of 0.783 and 0.837, respectively. Notably, both methods produced relatively similar and stable results. This demonstrates the reliability of both methods for use in this case. Nonetheless, future studies need to be extended to involve a larger system scale and sensitivity analysis to make the decision-making model more comprehensive.