Requirement-driven supplier selection: a multi-criteria QFD-based approach under epistemic and stochastic uncertainties

Jian-Peng Chang, Heng-Xin Ren, Luis Martínez, Witold Pedrycz and Zhen-Song Chen ()
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Jian-Peng Chang: Chongqing Technology and Business University
Heng-Xin Ren: Chongqing Technology and Business University
Luis Martínez: University of Jaén
Witold Pedrycz: University of Alberta
Zhen-Song Chen: Wuhan University

Annals of Operations Research, 2024, vol. 342, issue 2, No 3, 1079-1128

Abstract: Abstract Supplier selection (SS) has emerged as a critical challenge for companies aiming to enhance the operational management of their supply chains, a task that has grown in complexity with the advent of Industry 4.0 and the ongoing digital transformation. Recognizing the gaps in current literature—specifically, the lack of consideration for stakeholders' expectations in guiding SS, as well as the inadequate handling of epistemic and stochastic uncertainties—this paper introduces a multiple-criteria Quality Function Deployment (QFD)-based model for SS. To address epistemic uncertainty, we put forward a novel subjective judgment representation method, which is named as linguistic term set integrated with discrete subjective probability distribution (LTS-DSPD), to enable decision-makers to express their judgments in a manner that is both simpler and more nuanced. Furthermore, we also give the elicitation methods and computing techniques for LTS-DSPD. Then, we integrate stakeholders’ requirements, along with their preferences and expectations for these requirements to inform and guide SS. To effectively operationalize this guidance, we design the QFD-based methods to transform stakeholders' inputs into the assessment criteria for SS, the weights of criteria, and the expectations for the performances of suppliers on each criterion, respectively. To address stochastic uncertainty, we have developed an innovative methodology for characterizing it, and adopt prospect theory to quantify the overall utility of alternative suppliers. The paper concludes with a case study to demonstrate its practical application and effectiveness in streamlining SS process.

Keywords: Requirement-driven supplier selection; Quality function deployment (QFD); Epistemic uncertainty; Stochastic uncertainty; Prospect theory (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s10479-024-06131-0

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