Multicriteria approach to the problem of the integration of suppliers into a production–distribution system

This paper presents a new mathematical model for choosing a supply strategy, with respect to many criteria, which integrates suppliers into a production–distribution system. The problem presents part of a purchasing plan and it is very current in contemporary business practice. The importance of reliable supply is increasing with global sourcing. The integration of suppliers and production–distribution systems means that both entities have the same or similar objectives. The criteria present supplier performance and are given either as cardinal values or by linguistic expressions. Uncertainties are modeled by discrete fuzzy numbers. The uncertainties are described by possibility measures and are based on the subjective judgement of experts. The algorithm for choosing the best supply strategy which integrates primarily into a production–distribution system is based on the application of a new fuzzified analytic hierarchy process.