A fuzzy VIKOR method for supplier selection based on entropy measure for objective weighting

Recently, resolving the problem of evaluation and ranking the potential suppliers has become as a key strategic factor for business firms. With the development of intelligent and automated information systems in the information era, the need for more efficient decision making methods is growing. The VIKOR method was developed to solve multiple criteria decision making (MCDM) problems with conflicting and non-commensurable criteria assuming that compromising is acceptable to resolve conflicts. On the other side objective weights based on Shannon entropy concept could be used to regulate subjective weights assigned by decision makers or even taking into account the end-users’ opinions. In this paper, we treat supplier selection as a group multiple criteria decision making (GMCDM) problem and obtain decision makers’ opinions in the form of linguistic terms. Then, these linguistic terms are converted to trapezoidal fuzzy numbers. We extended the VIKOR method with a mechanism to extract and deploy objective weights based on Shannon entropy concept. The final result is obtained through next steps based on factors R, S and Q. A numerical example is proposed to illustrate an application of the proposed method.

► The VIKOR method was developed to solve MCDM problems with conflicting and non-commensurable criteria assuming that compromising is acceptable to resolve conflicts.
► The decision criteria could be extended to include both subjective, set by decision makers, and objective criteria which could be set based on end users’ opinions.
► In this paper, we extended the VIKOR method to support both types of weights using Shannon entropy.