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Advances in Decision Sciences
Volume 2013, Article ID 873534, 11 pages
http://dx.doi.org/10.1155/2013/873534
Research Article

Evaluation of Cost-Effectiveness Criteria in Supply Chain Management: Case Study

1Department of Management, Faculty of Management and Human Resource Development, Universiti Teknologi Malaysia, 81310 Skudai, Johor, Malaysia
2Department of Management, East Azarbaijan Science & Research Branch, Islamic Azad University, Tabriz 51579-44533, Iran
3Department of Mechanical Engineering, École Polytechnique de Montréal, C.P. 6079 Succ. Centre-Ville, Montréal, QC, Canada H3C 3A7
4Department of Industerial Management, Faculty of Accounting and Management, Allameh Tabataba'i University, Tehran 1434863111, Iran

Received 28 June 2013; Revised 13 September 2013; Accepted 14 September 2013

Academic Editor: Wai Ki Ching

Copyright © 2013 Reza Rostamzadeh et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

The aim of this paper is to evaluate and prioritize the proposed cost-effectiveness criteria in supply chain management using fuzzy multiple attribute decision-making (MADM) approach. Over the past few years, the determination of suitable cost-effectiveness criteria in the supply chain has become a key strategic issue. However, the nature of these kinds of decisions is usually complex and unstructured. Many quantitative and qualitative factors must be considered to determine the suitable criteria. As the human decision-making process usually contains fuzziness and vagueness, a hierarchy of MADM model based on fuzzy-sets theory is used in this research. Using a fuzzy analytic hierarchy process (FAHP), the weights of criteria and subcriteria are determined and then the final ranking is determined by technique for order preference by similarity to ideal solution (TOPSIS). Finally, fuzzy TOPSIS (FTOPSIS) is employed to compare the results with classic TOPSIS. This paper concludes that the subcriteria in all the items are in the same rank.