A new method for VE partner selection and evaluation based on AHP and fuzzy theory

Abstract

In view of inconsistency of the judgment matrix gotten by pairwise comparison between increasing alternatives in nowadays virtual enterprise (VE) partner selection & evaluation problem by the analytic hierarchy process (AHP), a new Web-based method combined the AHP and other basic fuzzy theory is proposed, in which the priority weights of decision criteria in every level of hierarchy structure are identified by the AHP and attribute-values of every alternative are determined by fuzzy relation matrix, then the evaluation result is acquired by synthesizing them finally. An application system based on this method has been developed, and a real case study of selecting VE partners demonstrated its application and examined its effectiveness. The use of the proposed method indicates that it is not only suited to solving problems such as regional restriction, long treating time and inflexible processing way, etc., which are produced by applying traditional partner selection method, but also suited to making up drawbacks including limited number of alternatives, unreasonable mathematical model structure, etc., which are caused by the use of the AHP or fuzzy-AHP. This applicable method makes it easier for the evaluation team to arrive at a consensus decision, obtain fair and reasonable conclusions and examine the strengths and weaknesses of alternatives by comparing them with respect to appropriate criteria.