Supplier Selection Using Ranking Interval Type-2 Fuzzy Sets

In face of global competition, supplier management is emerging as crucial issue to any companies striving for business success. This paper develops a framework for selecting suitable outsourced suppliers of upstream supply chain in uncertain environment. Emerging supply risk arising from outsourcing are analyzed to reduce cost and increase the sustainability of supply chain network. The study applies ranking based interval type-2 fuzzy set exploring the risk factors and ranking supplier companies. The performance rating weights of risk criteria in supply chain are evaluated based on decision makers. Finally, an empirical study is conducted for Indian Oil Corporation Limited (IOCL) to demonstrate the applicability of the proposed algorithm to select the suitable crude oil supplier(s).