Fuzzy DEMATEL method for developing supplier selection criteria

Supply chain management (SCM) practices have flourished since the 1990s. Enterprises realize that a large amount of direct and indirect profits can be obtained from effective and efficient SCM practices. Supplier selection has great impact on integration of the supply chain relationship. Effective and accurate supplier selection decisions are significant components for productions and logistics management in many firms to enhance their organizational performance. This study pioneers in using the fuzzy decision-making trial and evaluation laboratory (DEMATEL) method to find influential factors in selecting SCM suppliers. The DEMATEL method evaluates supplier performance to find key factor criteria to improve performance and provides a novel approach of decision-making information in SCM supplier selection. This research designs a fuzzy DEMATEL questionnaire sent to seventeen professional purchasing personnel in the electronic industry. Our research results find that stable delivery of goods is the most influence and the strongest connection to other criteria. (C) 2010 Elsevier Ltd. All rights reserved.