Developing a strategic model based on structural equation modeling and fuzzy logic approach in supplier selection

This study was performed in Khoozestan Steel Company for the development of a model for strategic supplier selection approaches using structural equation modeling and fuzzy logic .The purpose of this research was to design and develop a suitable model for supplier selection using structural equation modeling and fuzzy logic approaches in the Khoozestan Steel Company. Survey was done across all employees associated with the evaluation and selection of suppliers of the steel company, which had a total of about 200 people. Sampling method of this study is sampling available. Questionnaire used as a data collection tool, and for this research two questionnaires prepared to provide two levels of selection A comprehensive approach inclusive two-level structural equation modeling and fuzzy logic approach is proposed. SPSS, Lisrel and Matlab softwares were used for data analysis. After reviewing the literature and views of the experts of Khoozestan Steel, 8 criteria have been identified including high quality, Supplier delivery performance, service standard level, the cost and pricing level, high standard of management and organization, financial status, level of technology and technical capabilities and experience in providing funding for supplier evaluation and selection.
After analysis, the results of the study showed that eight specified criteria have significant impact on the choice of supplier. The findings also confirmed the fitness and suitability of the supplier selection model and determination of the relative importance of research in the first level and position options for the Khoozestan Steel Company for determination of the supplier of alloy components at the second level and confirmation of compatibility and validity of decisions and final output of the proposed model showed that the scores are calculated. The highest of the A supplier has the most importantce and highest rank, and therefore the best option for Khoozestan Steel Company for supplying the alloy components. After A supplier, the suppliers of C, D and B are next in rank respectively