1. Applying Fuzzy Linguistic Quantifier to Select Supply Chain Partners at Different Phases of Product Life Cycle Author: Sheng-Lin Chang, Reay-Chen Wang, Shih-Yuan Wang Source: International Journal of Production Economics, vol. 100, pp. 348-359, 2006. Speaker: Kung-Ming Yeh Date: 2006/1/5

2. 2 Outline  Introduction  Algorithm  Numerical Example  Sensitivity Analysis  Conclusion

3. 3 Introduction  Enterprises have been focusing increasingly on their own core competencies and outsourcing the remaining functions to third parties.  Speed, flexibility, quality and cost are becoming increasingly important.

4. 4 Introndution(cont.)  An effective supplier assessment and selection process is essential.  Weights not only represented the importance of attributeds or criteria but also correlated with product life cycle.

5. 5 Introudction(cont.)  Develop a supplier selection procedure by considering different fuzzy linguistic envirnments and different product life cycle phases

6. 6 Algorithm

7. 7 Algorithm(cont.)

8. 8

9. 9  Transformation operation deal with both positive and negative BCs. i: suppliers k: FA j: BC

10. 10 Algorithm(cont.)  Linguistic rating is represented using a linguistic term with membership grade.

11. 11 Algorithm(cont.)  Linguistic rating on membership function corresponding to fuzzy number.

12. 12 Algorithm(cont.)  Fuzzy linguistic quantifier

13. 13 Algorithm(cont.)  Product attributes and supply chain strategy on product life cycle.

14. 14 Algorithm(cont.)  Optimizing FLQG-OWA operator

15. 15 Algorithm(cont.)  Aggregating on optimal FLQG-OWA operator. is the jth largest of the

16. 16 Numerical Example  Supplier A has advantage in R&D, Supplier B in manufacturing, Supplier C in distribution.  Product life cycle of notebook computers has entered the “maturity” phase.  Conversion process of the “design” of BC.

17. 17 Numerical Example(cont.)  BC into is presented below:

18. 18 Numerical Example(cont.)  Dealing with the fuzzy linguistic quantifier “most” and involving four items, j=1…4.

19. 19 Numerical Example(cont.)

20. 20 Sensitivity Analysis

21. 21 Sensitivity Analysis(cont.)  Appendix

22. 22 Sensitivity Analysis(cont.)  Appendix

23. 23 Sensitivity Analysis(cont.)

24. 24 Conclusion&Comment  Developing a supplier selection approach by applying linguistic interval scale and numerical ratio scale.  Through the FLQG-OWA operator, the fuzzy majority rule represents the composite value for different strategies during different phases.  This approach may be apply many areas, such Credit Card, Investment, Insurance, Purchasing, etc.