Supplier selection using a clustering method based on a new distance for interval type-2 fuzzy sets: A case study

Supplier selection is a decision-making process to identify and evaluate suppliers for making contracts. Here, we use interval type-2 fuzzy values to show the decision makers' preferences and also introduce a new formula to compute the distance between two interval type-2 fuzzy sets. The performance of the proposed distance formula in comparison with the normalized Hamming, normalized Hamming based on the Hausdorff metric, normalized Euclidean and the signed distances is evaluated. The results show that the signed distance has the same trend as our method, but the other three methods are not appropriate for interval type-2 fuzzy sets. Using this approach, we propose a hierarchical clustering-based method to solve a supplier selection problem and find the proximity of the suppliers. To illustrate the applicability of the proposed method, first a case study of supplier selection problem with 8 criteria and 8 suppliers are illustrated and next, an example taken from the literature is worked through. Then, to test the hierarchical clustering-based method and compare with the obtained results by two other methods, a comparative study using experimental analysis is designed. The results show that while the proposed hierarchical clustering algorithm provides acceptable results, it is also conveniently appropriate for using interval type-2 fuzzy sets and obtaining proximity of suppliers. (C) 2015 Elsevier B.V. All rights reserved.