Presenting a New Approach to Selecting the Best Supplier Using the Failure Mode and Effects Analysis Technique and Fuzzy Hierarchy Process Analysis: A Case Study of a Pharmaceutical Company

Authors

  • Ehsan Fallahi Arezodar * Department of Industrial Engineering, Faculty of Engineering and Technology, University of Guilan, Rudsar, Guilan, Iran.
  • Mohadesseh Ahmadipour Rudposht Department of Industrial Engineering, LA. C., Islamic Azad University, Lahijan, Iran.
  • Amir Mohammad Foroud Department of Industrial Engineering, Faculty of Management, Economics and Development Engineering, University of Science and Technology, Tehran, Iran.

https://doi.org/10.22105/ahse.v2i3.46

Abstract

Supplier selection has long been regarded as one of the most challenging issues in supply chain optimization, and a firm's success largely depends on choosing an appropriate supplier. The supplier selection process is a highly complex, multi-person, group decision-making problem that can benefit from systematic, rational approaches to improve the evaluation of priorities. This process typically relies on collective input from individuals across different functional areas within an organization. This study demonstrates how the Fuzzy Analytic Hierarchy Process (F-AHP) can be effectively integrated with the Failure Mode and Effects Analysis (FMEA) approach to select the best supplier in a supply chain risk environment. The F-AHP method is employed to determine the relative weight of each criterion, while the FMEA technique is used to calculate the Risk Priority Number (RPN) for each criterion and its associated sub-criteria in the supplier selection problem. Sobhan Pharmaceutical company is selected as a case study to implement the proposed approach, and the results indicate improvements in performance across various criteria.   

Keywords:

Supplier selection, Fuzzy analytic hierarchy process, Failure mode and effects analysis

References

  1. [1] Beheshti, M., ZareRavasan, A., Mahdiraji, H. A., Jafari-Sadeghi, V., & Sakka, G. (2024). An overview of the consumer-centric disruptive technology research: Insights from topic modelling and literature review. Journal of consumer behaviour, 23(2), 372–388. https://doi.org/10.1002/cb.2204

  2. [2] Abolghasemian, M., Kheiri, A. O., & Saberifard, N. (2024). Prioritizing factors affecting the flexibility and performance of the digital supply chain system in the Iranian food industry. System engineering and productivity, 4(1), 41-57. (In Persian). https://doi.org/10.22034/msb.2024.2025240.1194

  3. [3] Nilforoushan, N., & Tahanian, A. R. (2017). Choose suppliers in the supply chain green (sustainable) required to purchase color surface marking case study: Department of transport and engineering company Nik Andish. Journal of decisions and operations research, 1(2), 112-131. (In Persian). https://doi.org/10.22105/dmor.2017.44886

  4. [4] Jahangiri, S., Abolghasemian, M., Pourghader Chobar, A., Nadaffard, A., & Mottaghi, V. (2021). Ranking of key resources in the humanitarian supply chain in the emergency department of Iranian hospital: A real case study in COVID-19 conditions. Journal of applied research on industrial engineering, 8, 1–10. https://doi.org/10.22105/jarie.2021.275255.1263

  5. [5] Ariafar, Sh., Agoush, L., Kalavani, K., & Rahimisadegh, R. (2020). Selection of electroshock device supplier using TOPSIS, VIKOR, and SAW multi-criteria de-cision-making methods in Afzalipour Hospital, Kerman. Hakim research journal, 23(3), 344-352. (In Persian). http://hakim.tums.ac.ir/article-1-2033-en.html

  6. [6] Shadkam, E. (2022). The new FAPSIS hybrid method to solve multi-objective optimization problems: Supplier selection problem. Journal of operational research in its applications, 19(4), 63-87. (In Persian). https://www.sid.ir/paper/1083729/en

  7. [7] Sorourkhah, A., & Edalatpanah, S. A. (2021). Considering the criteria interdependency in the matrix approach to robustness analysis with applying fuzzy ANP. Fuzzy optimization and modeling journal (FOMJ), 2(2), 22–33. https://doi.org/10.30495/fomj.2021.1932066.1029

  8. [8] Montazeri, F. Z., Sorourkhah, A., Marinković, D., & Lukovac, V. (2024). Robust-fuzzy-probabilistic optimization for a resilient, sustainable supply chain with an inventory management approach by the seller. Big data and computing visions, 4(2), 146–163. https://doi.org/10.22105/bdcv.2024.481945.1208

  9. [9] Arabzad, S. M., Razmi, J., Tavakkoli-Moghaddam, R., & Ghorbani, M. (2012). Proposing a new approach for supplier selection based on Kraljic’s model using FMEA and integer linear programming. Research in production and operations management, 3(1), 19-40. (In Persian). https://jpom.ui.ac.ir/article_19779_en.html

  10. [10] Homayounfar, M., Daneshvar, A., & others. (2018). Prioritization of green supply chain suppliers using a hybrid fuzzy multi-criteria decision making approach. Journal of operational research in its applications (applied mathematics)-lahijan azad university, 15(2), 41–61. https://jamlu.liau.ac.ir/article-1-1544-en.html

  11. [11] Zadeh, L. A. (1965). Fuzzy sets. Information and control, 8(3), 338–353. https://doi.org/10.1016/S0019-9958(65)90241-X

  12. [12] Cheng, C. H. (1997). Evaluating naval tactical missile systems by fuzzy AHP based on the grade value of membership function. European journal of operational research, 96(2), 343–350. https://doi.org/10.1016/S0377-2217(96)00026-4

  13. [13] Kahraman, C., & Kaya, İ. (2010). A fuzzy multicriteria methodology for selection among energy alternatives. Expert systems with applications, 37(9), 6270–6281. https://doi.org/10.1016/j.eswa.2010.02.095

  14. [14] Bowles, J. B., & Peláez, C. E. (1995). Fuzzy logic prioritization of failures in a system failure mode, effects and criticality analysis. Reliability engineering & system safety, 50(2), 203–213. https://doi.org/10.1016/0951-8320(95)00068-D

  15. [15] Ravi Sankar, N., & Prabhu, B. S. (2001). Modified approach for prioritization of failures in a system failure mode and effects analysis. International journal of quality & reliability management, 18(3), 324–336. https://www.emerald.com/ijqrm/article-abstract/18/3/324/146805/Modified-approach-for-prioritization-of-failures?redirectedFrom=fulltext

  16. [16] Pillay, A., & Wang, J. (2003). Modified failure mode and effects analysis using approximate reasoning. Reliability engineering & system safety, 79(1), 69–85. https://doi.org/10.1016/S0951-8320(02)00179-5

  17. [17] Seyed-Hosseini, S. M., Safaei, N., & Asgharpour, M. J. (2006). Reprioritization of failures in a system failure mode and effects analysis by decision making trial and evaluation laboratory technique. Reliability engineering & system safety, 91(8), 872–881. https://doi.org/10.1016/j.ress.2005.09.005

  18. [18] Fattahi, R., Tavakkoli-Moghaddam, R., Khalilzadeh, M., Shahsavari-Pour, N., & Soltani, R. (2021). Risk assessment by a new FMEA model based on an extended AHP method under a fuzzy environment. Environmental energy and economic research, 5(4), 1–14. https://doi.org/10.22097/eeer.2021.263341.1180

  19. [19] Altubaishe, B., & Desai, S. (2023). Multicriteria decision making in supply chain management using FMEA and hybrid AHP-PROMETHEE algorithms. Sensors, 23(8), 1–21. https://doi.org/10.3390/s23084041

  20. [20] Başaran, S., & Ighagbon, O. A. (2024). Enhanced FMEA methodology for evaluating mobile learning platforms using grey relational analysis and fuzzy AHP. Applied sciences, 14(19), 1-36. https://doi.org/10.3390/app14198844

  21. [21] Parmar, N. J., James, A. T., Khan, Z. A., & Asjad, M. (2023). Failure mode and effects analysis of hydraulic direct drive of belt conveyor system using a hybrid fuzzy Ahp and fuzzy topsis method. https://doi.org/10.2139/ssrn.4519785

  22. [22] Golrizgashti, S., Keshmiri, M., & Nazabadi, N. (2022). A comparative analysis of experts’ judgment methods for patient safety implementation-FMEA and fuzzy AHP. International journal of productivity and quality management, 37(3), 384–404. https://doi.org/10.1504/IJPQM.2022.126944

  23. [23] Chen, J. K. (2007). Utility priority number evaluation for FMEA. Journal of failure analysis and prevention, 7(5), 321–328. https://doi.org/10.1007/s11668-007-9060-2

  24. [24] Wang, Y. M., Chin, K. S., Poon, G. K. K., & Yang, J. B. (2009). Risk evaluation in failure mode and effects analysis using fuzzy weighted geometric mean. Expert systems with applications, 36(2), 1195–1207. https://doi.org/10.1016/j.eswa.2007.11.028

  25. [25] Sachdeva, A., Kumar, D., & Kumar, P. (2009). Multi-factor failure mode critically analysis using TOPSIS. Journal of industrial engineering international, 5(8), 1–9. https://sanad.iau.ir/Journal/jiei/Article/1040017/FullText

  26. [26] Sellappan, N., & Palanikumar, K. (2013). Modified prioritization methodology for risk priority number in failure mode and effects analysis. International journal of applied science and technology, 3(4), 27–36. chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://ijast.thebrpi.org/journals/Vol_3_No_4_April_2013/3.pdf

  27. [27] Arabsheybani, A., Paydar, M. M., & Safaei, A. S. (2018). An integrated fuzzy MOORA method and FMEA technique for sustainable supplier selection considering quantity discounts and supplier’s risk. Journal of cleaner production, 190, 577–591. https://doi.org/10.1016/j.jclepro.2018.04.167

  28. [28] Mangla, S. K., Kumar, P., & Barua, M. K. (2016). An integrated methodology of FTA and fuzzy AHP for risk assessment in green supply chain. International journal of operational research, 25(1), 77–99. https://doi.org/10.1504/IJOR.2016.073252

  29. [29] Yazdani, M., Chatterjee, P., Pamucar, D., & Abad, M. D. (2019). A risk-based integrated decision-making model for green supplier selection: A case study of a construction company in Spain. Kybernetes, 49(4), 1229–1252. https://doi.org/10.1108/K-09-2018-0509

  30. [30] Tavana, M., Shaabani, A., Mansouri Mohammadabadi, S., & Varzgani, N. (2021). An integrated fuzzy AHP- fuzzy MULTIMOORA model for supply chain risk-benefit assessment and supplier selection. International journal of systems science: Operations & logistics, 8(3), 238–261. https://doi.org/10.1080/23302674.2020.1737754

  31. [31] Ak, M. F., & Demir, E. (2024). A novel qualitative risk assessment using the interval-valued spherical fuzzy extension of TOPSIS method: A case study in rail transit systems. Neural computing and applications, 36(10), 5109–5132. https://doi.org/10.1007/s00521-023-09224-2

  32. [32] Duan, C., Zhang, Z., Zhao, L., & Yu, Y. (2024). Reliability and risk assessment of digital twin system based on improved failure mode and effects analysis. The international journal of advanced manufacturing technology, 133(7), 3937–3955. https://doi.org/10.1007/s00170-024-13896-y

  33. [33] Gul, M. (2018). A review of occupational health and safety risk assessment approaches based on multi-criteria decision-making methods and their fuzzy versions. Human and ecological risk assessment: An international journal, 24(7), 1723–1760. https://doi.org/10.1080/10807039.2018.1424531

  34. [34] Butnariu, A., & Avasilcai, S. (2015). The Assessment of The companies’ sustainable development performance. Procedia economics and finance, 23, 1233–1238. https://doi.org/10.1016/S2212-5671(15)00422-0

  35. [35] Kirytopoulos, K., Leopoulos, V., & Voulgaridou, D. (2008). Supplier selection in pharmaceutical industry: An analytic network process approach. Benchmarking: an international journal, 15(4), 494–516. https://doi.org/10.1108/14635770810887267

  36. [36] Ishizaka, A., Khan, S. A., Kheybari, S., & Zaman, S. I. (2023). Supplier selection in closed loop pharma supply chain: A novel BWM–GAIA framework. Annals of operations research, 324(1), 13–36. https://doi.org/10.1007/s10479-022-04710-7

Published

2025-08-23

How to Cite

Fallahi Arezodar, E., Ahmadipour Rudposht, M., & Foroud, A. M. (2025). Presenting a New Approach to Selecting the Best Supplier Using the Failure Mode and Effects Analysis Technique and Fuzzy Hierarchy Process Analysis: A Case Study of a Pharmaceutical Company. Annals of Healthcare Systems Engineering, 2(3), 159-173. https://doi.org/10.22105/ahse.v2i3.46

Similar Articles

11-16 of 16

You may also start an advanced similarity search for this article.