Optimizing manufacturing supplier selection and order allocation processes using fuzzy-QFD and goal programming: A case study in Indonesian chemical industry

This empirical study aims to implement an optimal methodology of a supplier selection process by integrating Fuzzy Quality Function Deployment (FQFD) and Goal Programming (GP). We apply the method to a company engaged in chemical industry, under multi item, multi supplier, and multi period environments. Problems encountered in this study are how to select suppliers and determine the optimal order allocation in accordance with company requirements. We use FQFD and GP to evaluate and allocate orders to suppliers. Four objectives are incorporated, including maximization of good products, on time delivery, and supplier scoring, along with minimization of material purchasing cost. We seek to find an optimal solution considering several constraints, such as material requirement and cost estimation, supplier and warehouse capacity, and safety stock. Our results provide insights that the most and the least important technical responses in chemical supplier selection are “supplier experience” and “response to customer order”, respectively. Whereas, the most important criteria are “product quality”, “product price”, and “delivery performance”, while the least important criteria are “return & repair service” and “documents”. The result also shows that the proposed method can achieve better solution compared to the past decision, in term of cost and supplier scoring.