Fuzzy Decision Tree Approach for Optimal Supplier Base

Abstract:

Minimizing supplier base allows better supplier relationship management, but any supplier failure will interrupt the supplies chain. Earth quake in Fukushima, Japan and flood in Bangkok, Thailand, caused supply chain breakdown and affect the global production. Decision tree method is recommended to determine optimal number of supplier in supplier base with the risk of supplier failure. This paper presented an approach to integrate fuzzy logic in decision tree approach by rating the supplier risk in linguistic terms for imperfect environment. Numerical example and sensitivity are carried out and presented, and optimal supplier base was identified.

• Periodical: Applied Mechanics and Materials (Volume 315)
• Pages: 283-287
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.315.283
• Online since: April 2013
• Authors: Hock Kheng Sim, Zhi Xin Wong
• Keywords: Decision Tree, Fuzzy Logic, Supplier Base, Supplier Selection

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