A Hesitant Fuzzy Linguistic TOPSIS Model to Support Supplier Segmentation

Abstract

ABSTRACT Objective: this study proposes a hesitant fuzzy linguistic TOPSIS model for supplier segmentation based on economic, environmental, and social criteria. Proposal: the model classifies suppliers in a segmentation matrix considering their capabilities and willingness to collaborate. It was implemented using Microsoft Excel© and applied to a hydropower plant. Two employees of the company chose a set of segmentation criteria, assigned weights to these criteria, and evaluated the performance of suppliers. In the pilot application, the performance of six suppliers was analyzed and ranked according to 28 criteria. The classification results were endorsed by the decision-makers involved. Conclusion: the model provides consistent results and can assist managers in designing development programs aimed at improving the economic, environmental, and social performance of suppliers. Additionally, it can support group decisions under uncertainty and hesitation, allows the use of linguistic expressions, and does not limit the amounts of criteria or alternatives.