S.Hemalatha¹, K. Ram Babu², K.Narayana Rao³, K.Venkatasubbaiah²,¹Lendi Institute of Engineering and Technology, India, ²Andhra University, India, ³Government Model Residential Polytechnic, India

In today’s highly competitive business environment, evaluation of suppliers is the prime function of the purchasing department of the organization. It is due to the fact that high percentage of the material cost for manufacturing of a product is involved. Identification of decision criteria and methods for supplier evaluation are appearing to be the important research area in the literature. In this paper, hybrid methodology of Fuzzy positive Ideal rating /Fuzzy Negative Ideal rating and Membership Degree Transformation- M (1, 2, 3) is proposed for evaluation of supplier’s performance. A wide literature review is made and six selection criteria namely: Cost, Quality, Service, Business performance, Technical Capability and Delivery performance are considered for evaluation. A detailed application of the proposed methodology is illustrated. The proposed methodology is useful not only to judge the overall performance of the supplier but also to know which criteria/sub-criteria need to be improved.

Membership Degree transformation; Fuzzy positive Ideal Rating; Fuzzy Negative Ideal Rating; Supplier performance;