Presented at the 4th International Symposium on Innovative Approaches in Engineering and Natural Sciences (ISAS WINTER-2019 (ENS)), Samsun, Turkey, Nov 22, 2019

SETSCI Conference Proceedings, 2019, 9, Page (s): 37-41 , https://doi.org/10.36287/setsci.4.6.017

Published Date: 22 December 2019    | 973     6

In the manufacturing sector, as in other sectors, it is very important to be able to calculate the cost of the product and therefore to work towards reducing the cost. When calculating the cost of the product, perhaps one of the most important items is the cost of raw materials. One of the most important goals of the companies is to provide cheap and fast material supply in a way that does not impair the quality, productability, warranty period, etc. of the product. One of the best ways to achieve this objective is to make the right supplier selection and supplier evaluation. Analytical Hierarchy Process (AHP), which is one of the multi-criteria decision making techniques for supplier selection / evaluation, is frequently used. In this study, fuzzy AHP method will be used to eliminate some of the shortcomings of classical AHP method. The manufacturing company where the application is made is a medium-sized company manufacturing industrial machinery in Kocaeli / İzmit. The biggest item of the company's input costs is electrical materials (20% of all raw materials). For this reason, it is important to select electrical equipment suppliers and therefore to establish long-term cooperation with suppliers. In the study, instead of selecting new suppliers, a study based on the win-win principle with the existing suppliers and requiring less investment was emphasized. Decision criteria to be used for evaluation will be determined by heuristic algorithm. Then, using these decision criteria, supplier evaluation will be made with fuzzy AHP method. In supplier selection, integer programming will be used.

Keywords - Supplier Evaluation, Multi Criteria Decision Making, Fuzzy Analytic Hierarchy Process

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