Logistics: Supplier Selection Risk: A New Computer-Based Decision-Making System With Fuzzy Extended AHP
Logistics: Supplier Selection Risk: A New Computer-Based Decision-Making System With Fuzzy Extended AHP
Article
Supplier Selection Risk: A New Computer-Based
Decision-Making System with Fuzzy Extended AHP
Marcus V. C. Fagundes 1,2, * , Bernd Hellingrath 3 and Francisco G. M. Freires 1
                                          1   Graduate Program in Industrial Engineering, Federal University of Bahia, Salvador, BA 40210-630, Brazil;
                                              francisco.gaudencio@ufba.br
                                          2   Department of Applied Social Sciences, State University of Southwest Bahia,
                                              Vitória da Conquista, BA 45031-900, Brazil
                                          3   Department of Information Systems, Münster School of Business and Economics, University of Münster,
                                              48149 Münster, Germany; bernd.hellingrath@wi.uni-muenster.de
                                          *   Correspondence: marcus@uesb.edu.br; Tel.: +55-77-99156-1916
                                          Abstract: Supplier risks have attracted significant attention in the supply chain risk management
                                          literature. In this article, we propose a new computational system based on the ‘Fuzzy Extended
                                          Analytic Hierarchy Process (FEAHP)’ method for supplier selection while considering the relevant
                                          risks. We sought to evaluate the opportunities and limitations of using the FEAHP method in supplier
                                          selection and analyzed the support of the system developed through the real case of a Brazilian
                                          oil and natural gas company. The computational approach based on FEAHP automates supplier
                                          selection by determining a hierarchy of criteria, sub-criteria, and alternatives. First, the criteria
                                          and sub-criteria specific to the selection problem were identified by the experts taking the relevant
                                          literature as a starting point. Next, the experts performed a pair-wise comparison of the predefined
         
                                   requirements using a linguistic scale. This evaluation was then quantified by calculating the priority
                                          weights of criteria, sub-criteria, and alternatives. The best decision alternative is the one with the
Citation: Fagundes, M.V.C.;
Hellingrath, B.; Freires, F.G.M.
                                          highest final score. Sensitivity analysis was performed to verify the results of the proposed model.
Supplier Selection Risk: A New            The FEAHP computer approach automated the supplier selection process in a rational, flexible, and
Computer-Based Decision-Making            agile way, as perceived by the focal company. From this, we hypothesized that using this system can
System with Fuzzy Extended AHP.           provide helpful insights in choosing the best suppliers in an environment of risk and uncertainty,
Logistics 2021, 5, 13. https://           thereby maximizing supply chain performance.
doi.org/10.3390/logistics5010013
                                          Keywords: supplier selection risk; multi-criteria programming; decision-making system; AHP;
Academic Editor: Željko Stević           Fuzzy logic
                              A part of the previous literature on supply chain risk establishes that supplier selection
                        can be treated as a multi-criteria decision-making problem. The different supplier selection
                        criteria may vary depending on a company’s needs, preferences, technology strategy, and
                        risks [2]. Modeling a decision problem may involve one single or multiple decision-makers,
                        affecting one or more criteria throughout the process, such as price, quality, delivery,
                        service, etc. Each decision-maker has personal judgment values on these selection criteria,
                        so the value of these decision variables is subjectively influenced [3]. Hence, the supplier
                        selection process involves imprecision, uncertainty, subjectivity, and ambiguity.
                              Decision-making models that involve more than one criterion are called multi-criteria
                        decision-models. In these models, decision alternatives are evaluated according to the
                        number of criteria (and sub-criteria) defined, requiring the use of an appropriate method for
                        preference classification [4]. For this, the Analytic Hierarchy Process (AHP) has been widely
                        used because it can deal with real multi-criteria decision-making problems [5]. Despite its
                        popularity and conceptual simplicity, this method is often criticized for the inability to deal
                        with the uncertainty and inaccuracy inherent in mapping the perception of the decision-
                        maker [6]. In the traditional formulation of AHP, human judgments are represented as exact
                        or crisp numbers. However, in many practical cases, such as the supplier selection problem,
                        the human preference model is uncertain, vague, and subjective, and it is not feasible for
                        the decision-maker to express his preferences through exact numerical values. In these
                        cases, it is best for the decision-maker to use ‘interval evaluations’ or ‘fuzzy evaluations’.
                              Fuzzy set theory resembles human reasoning, mathematically representing the use
                        of approximate and uncertain information in decisions [7]. The need of today’s world to
                        find real solutions to problems with inherent inaccuracy has made fuzzy logic important
                        in the economic, social, industrial, and political spheres [8]. In order to deal with the
                        uncertainties of the decision problem and eliminate the disadvantages of AHP, the Fuzzy
                        AHP integrated approach is preferred in supplier selection research [6] because it is more
                        effective in representing the priority judgments of decision-makers.
                              Thus, in this article, we propose a new computational system based on the ‘Fuzzy
                        Extended Analytic Hierarchy Process (FEAHP)’ method, introduced by Chang [9], for
                        supplier selection considering risks. Specifically, we seek to: (i) evaluate the opportunities
                        and limitations of using the FEAHP method in the selection of supplier considering risks;
                        and (ii) analyze the support of the developed system through the real case of a Brazilian oil
                        and natural gas company. There are three contributions provided by this article. First, we
                        discussed the use of an integrated multi-criteria decision-making approach for solving an
                        important problem in today’s supply chains, second, we proposed a new computational
                        system that supports supplier selection in a rational, flexible, and agile way, and third,
                        we applied the computational tool developed in a real case of supplier selection while
                        considering risks of a large oil company, which allowed important empirical analyses for
                        the area of supply chain, logistics, and operations management.
                              Besides this introduction, this paper has five more sections. In the next section,
                        we present the literature review. In Section 3, we discuss the research methodology. In
                        Section 4, we present the application of the FEAHP-based computing system in a Brazilian
                        oil and natural gas company. We discuss the research empirical results in Section 5. Finally,
                        in Section 6 we present the conclusion, limitations, and future work.
                        2. Literature Review
                             In the first two decades of this century, several events have highlighted the inter-
                        dependencies between supply chain companies and their vulnerabilities to disruptive
                        triggers with dramatic consequences [10,11]. According to [12], the risk of supply chain
                        disruptions has increased in recent years due to the progress of globalization, increased
                        outsourcing, and an intensified focus on efficiency and lean management. Despite the
                        increased risks of the supply chain, few companies take effective measures to manage
                        them [13]. This gap makes supply chain risk management (SCRM) an attractive area of
                        research and professional practice. According to [14], SCRM results from coordination or
Logistics 2021, 5, 13                                                                                                 3 of 17
                        collaboration between supply chain partners to ensure profitability and continuity, encom-
                        passing two dimensions: operational risks and violation; mitigation of risks. According
                        to [15], SCRM involves all risks of the flow of finance, information, materials, and prod-
                        ucts, from suppliers to delivery of the product to the end user. From a process-oriented
                        perspective, many scholars define the SCRM as a structure that involves the identification,
                        evaluation, mitigation, and control of possible interruptions in the supply chain and its
                        negative impacts [16–22].
                             According to [18], the supplier risks attracted significant attention in the studies on
                        SCRM, with emphasis on supplier selection problems. Supplier selection is a critical issue
                        because poor decisions can cause various supply-related difficulties, such as delays in
                        deliveries and high defect rates [23]. In addition, as supply chains become global, external
                        factors, in addition to internal factors, increasingly influence supplier risks [14]. The risks
                        of supplier selection can be grouped into recurring risks if risk events are frequent but
                        short, and risks of interruption if risk events are rare but long [24,25].
                             To identify and classify the supplier selection risks proposed in the literature, we
                        reviewed several journal papers published between 2000 and 2020. First, the research terms
                        were defined. The keywords used in the search process were ‘supplier’ or ‘vendor’ or
                        ‘provider’ and ‘risk’ or ‘risk type’ or ‘risk factor’. Secondly, several academic databases
                        were used to identify journal articles, including Emerald, Google Scholar, IEEExplore,
                        ScienceDirect, Scopus, Springer, Taylor and Francis, and Web of Science. Only peer-
                        reviewed articles written in English and published in international journals were selected.
                        We did not restrict the list of journals to ensure the capture of all relevant studies.
                             Third, the reference lists of articles were also evaluated to ensure that there were
                        no other relevant articles omitted from the research. Finally, the content of each article
                        was completely revised to ensure that it fits the context of supplier selection considering
                        risks. This analysis resulted in 26 journal articles. To classify these articles, we developed a
                        conceptual structure that integrates several risks of supplier selection, as shown in Table 1.
                        By synthesizing several points of view of the literature, we grouped the risks of supplier
                        selection into 11 types. Each established ‘risk type’ has associated ‘risk factors’, i.e., several
                        events and situations that lead to a specific ‘risk type’ [18].
Table 1. Cont.
                             As shown in Table 1, the risk types related to performance, delivery, quality, and
                        sustainability attracted important attention in the literature, being considered as the main
                        criteria in the selection of suppliers. The most significant risk factors were poor quality,
                        delay in delivery, interruption of supply, supplier failure, and technological risks, which
                        can be defined as the most relevant sub-criteria in supplier selection according to the
                        above-mentioned literature review.
                             After determining the criteria (risk types) and sub-criteria (risk factors), decision-
                        makers should choose an appropriate and systematic method to evaluate and select al-
                        ternative suppliers. Many studies have reviewed the literature on supplier selection
                        models [50–53]. Multi-criteria decision-making models (MCDM), mathematical program-
                        ming (MP), and artificial intelligence (AI) techniques are some of the most popular ap-
                        proaches [50,53,54]. MCDM provides a methodological framework for decision support
                        systems; MP is used to optimize or evaluate supplier selection; AI identifies approximate
                        solutions to complex optimization problems [54]. MCDM approaches are the most popular
                        and within MCDM the Analytical Hierarchy Process (AHP) is most often applied [53].
                             AHP is widely used because it is effective in evaluating qualitative and quantitative
                        decision criteria [6]. It can be used alone or combined with other methods. The interaction
                        and interdependent relationships between evaluation criteria are critical and should be
                        considered in order to properly select a supplier. The hierarchy of decision criteria is
                        the subject of an AHP pair-wise comparison, which converts human preferences among
                        the available alternatives into ‘equal, not very strong, strong, very strong, and extremely
                        strong’ [5]. Although the crisp scale of AHP has the advantages of simplicity and ease
                        of use, it is unable to consider the uncertainty associated with subjective and individual
                        evaluation of the decision-maker. Therefore, to deal with the uncertainties of the decision
                        problem and eliminate the disadvantages of AHP, Fuzzy AHP is the preferred method
                        in supplier selection studies [6]. The main motivation behind incorporating the Fuzzy
                        set theory into the original AHP is based on the argument that human judgments and
                        preferences cannot be accurately represented by crisp numbers due to the uncertainty
                        inherent in human perception [55]. The Fuzzy set theory implements data classes with
                        unclear limits, that is, fuzzy limits [56].
                             There are several approaches in the studies on supplier selection that used the AHP
                        and Fuzzy methods in an individual or integrated way [57–61]. However, the literature
                        on the use of AHP and Fuzzy methods in the problem of supplier selection that considers
                        risks is more limited. In the work of [2], the integrated approach Fuzzy AHP is adopted
                        to evaluate the relevant decision criteria, including risk factors, in the development of a
                        global supplier selection system. In [32], Fuzzy, AHP, and TOPSIS (Technique for order
                        preference by similarity to the ideal solution) methods are used in the selection of suppliers
                        based on supply chain ecosystem, performance, and risk criteria. In [37], the integrated
Logistics 2021, 5, 13                                                                                              5 of 17
                        method Fuzzy AHP is applied to the concept of benefits, opportunities, costs, and risks
                        to evaluate various aspects of suppliers. In [49], the combined Fuzzy-AHP-Input/Output
                        model approach is used to evaluate the social risks of supplier selection in the German
                        automotive industry. Finally, in [62] an integrated Fuzzy-AHP-VIKOR approach is used to
                        select sustainable global suppliers.
                              Based on the literature review presented in this section, we identified some important
                        observations on the problem of supplier selection considering risks: a. the risk types
                        (decision criteria) and risk factors (decision sub-criteria) prominent in the literature refer
                        mainly to aspects of supplier operational efficiency; b. the integrated Fuzzy AHP approach
                        helps to develop the capabilities of traditional AHP and Fuzzy methods, overcoming some
                        of their individual weaknesses; c. there is limited literature on the use of Fuzzy AHP
                        integrated into supplier risk evaluation, as well as on the feasibility of its implementation
                        in a practical and real manufacturing environment; and d. there is an insufficient discussion
                        on the development of a computational tool for supporting the evaluation and selection of
                        suppliers considering risks. Thus, to the best of our knowledge, this paper is an original
                        effort at evaluating suppliers in the context of the risks inherent in a real supply chain
                        through a computational solution that integrates the powerful AHP and Fuzzy techniques.
                        3. Methodology
                             The computational system for supplier selection considering risks proposed in this
                        paper is based on the ‘Fuzzy Extended Analytic Hierarchy Process’ (FEAHP) method by
                        Chang [9]. Although the first integrated Fuzzy AHP algorithm was introduced by [63],
                        other authors presented different approaches to deal with this method, such as [64–66].
                        However, the extent analysis approach presented by [9] has become more successful, as
                        it has a faster algorithm, requires less computational effort, and has more flexibility of
                        practical implementation compared to the algorithms proposed by [63–66].
                             Chang’s method uses triangular fuzzy numbers (TFN) for the pair-wise comparison
                        in AHP and consists of three essential parts [9]. In the first, the AHP approach is used to
                        structure the problem into hierarchy. In the second, the fuzzy extent analysis is performed,
                        from which normalized judgment matrices are obtained. Finally, the defuzzification and/or
                        classification of the weights is conducted through the principle of comparing fuzzy numbers
                        based on the degree of possibility.
                             Let X = { x1, x2 x3, ..., xn } be an object set, and U = {u1, u2, u3, ..., um } be a goal
                        set. According to the method of Chang’s extent analysis, each object is taken and extent
                        analysis for each goal, gi , is performed, respectively. Therefore, m extent analysis values
                                                                                                                 m with
                        for each object can be obtained, with the following signs: M1gi , M2gi , M3gi , . . . , Mgi
                                                           j
                        i = 1, 2, 3, . . . , n, where all Mgi are TFN, i.e., j = 1, 2, 3, . . . , m. The steps of Chang’s
                        extent analysis can be given as in the following [9]:
                             Step 1. The fuzzy synthetic extent with respect to i th object is defined as:
                                                                       h                   i −1
                                                               m           n     m
                                                           ∑ j=1 Mgi ⊗ ∑i=1 ∑ j=1 Mgi
                                                                   j                   j
                                                    Si =                                          .                   (1)
                                                j
                            To obtain ∑m  j=1 M gi , the operation of fuzzy addition of the values of the m extent
                        analysis for a particular matrix is performed such that:
                                                                                            
                                                     m            m        m         m
                                                ∑ j=1 Mgi = ∑ j=1 l j , ∑ j=1 m j , ∑ j=1 u j .
                                                          j
                                                                                                                (2)
                                                       j −1
                                       h                  i
                                                                                                           j
                            Also to get ∑in=1 ∑mj =1 M gi     , the fuzzy addition operator of the values Mgi is per-
                        formed such that:
                                                                                             
                                              n      m                 n       n        n
                                           ∑i=1 ∑ j=1 gi ∑i=1 i ∑i=1 i ∑i=1 i .
                                                            j
                                                          M     =         l ,     m ,      u                      (3)
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                                                           j −1
                                                                                            
                                           h
                                              n      m
                                                            i            1         1      1
                                             ∑i=1 ∑ j=1 Mgi = ∑n ui , ∑n mi , ∑n li .                                         (4)
                                                                       i =1     i =1    i =1
                            The result of Equation (5) corresponds to the point of highest intersection between M1
                        and M2 . This intersection is represented by the “point d” of Figure 1. However, to solve
                        Equation (5), the calculations established in Equation (6) are necessary:
                                                               
                                                               
                                                                        1 i f m2 ≥ m1
                                              V ( M2 ≥ M1 ) =             0 i f l1 ≥ u 2        .               (6)
                                                                       ( l1 − u 2 )
                                                                                    , otherwise
                                                               
                                                               
                                                                  (m −u )−(m −l )
                                                                           2   2      1   1
                            Step 3: The degree of possibility for a convex fuzzy number to be greater than k convex
                        fuzzy numbers Mi (i = 1, 2, . . . , k) can be defined by Equation (7):
                        This system is structured in three interactive and interdependent modules. Modules 1 and
                        2 represent codes called ‘functions’ and module 3 corresponds to the ‘main program’. In
                        the execution of the developed programming, modules 1 and 2 are activated by module 3,
                        according to the system architecture shown in Figure 2.
                        to be considered when determining the priority supplier. Therefore, the desired global
                        supplier development strategy of this company depends directly on the decision to select
                        the best suppliers considering multiple criteria.
                             It is within this context that we applied the FEAHP-based computing system to select
                        the best supplier for a critical component of the aforementioned company: industrial
                        steel pipes and fittings for gas and oil pipelines. For this, we had the participation of
                        a specialized team of five members from the purchasing and supply management area
                        of the focal company, with an average experience of more than nine years. This team
                        consists of a Purchasing Executive, a Purchasing Planner, a Purchasing Supervisor, and
                        two Material Controllers.
                             The participation of this expert team took place through a series of brainstorming
                        sessions and interviews. First, the consent of all experts was obtained in order to identify the
                        main criteria and sub-criteria relevant in supplier selection considering risks. Subsequently,
                        the consent of all experts was obtained to comparatively evaluate the predefined criteria,
                        sub-criteria, and supplier alternatives.
                             Taking the typical risk types and risk factors for most companies as a starting point,
                        as presented in Table 1, the experts identified by consensus the following criteria (Cx ) and
                        sub-criteria (Subc x ) as the most important in the company’s supplier selection process:
                        C1 delivery (Subc1 —delay in delivery; Subc2 —low delivery speed), C2 performance (Subc3 —
                        supplier failure; Subc4 —interruption of supply; Subc5 —low supplier reliability), C3 price
                        (Subc6 —high supplier price; Subc7 —increase in supplier costs), and C4 financial (Subc8 —
                        bad financial condition of the supplier; Subc9 —single supply that causes the buyer’s
                        financial loss). Almost all of these criteria and sub-criteria identified by the company
                        have already been considered in previous research of the area, with the exception of the
                        sub-criteria Subc7 and Subc9 . Therefore, the specific risk factors represented by Subc7 and
                        Subc9 can be considered as unique to the Brazilian oil and gas company studied.
                             From these criteria and sub-criteria for supplier selection, the hierarchy of the decision
                        problem was structured, as shown in Figure 3. The alternative suppliers were identified as
                        A1 , A2 , and A3 . Thus, in the hierarchical structuring of the selection problem, we defined
                        the general goal at the first level, the criteria in the second level, the sub-criteria in the
                        third level, and the alternatives suppliers in the fourth level. After the development of
                        the problem hierarchy, the different priority weights of each criterion, sub-criterion, and
                        alternative supplier were calculated using the FEAHP method. The comparison of the
                        importance of the criteria, sub-criteria, and alternative suppliers in relation to others was
                        carried out with the help of the questionnaire applied to the focal company’s purchasing
                        experts. The questionnaires made it easier to answer pair-wise comparison questions. The
                        preference of one measure over another was decided consensually by the experience of the
                        company’s experts. First, these experts compared the criteria with respect to the general
                        goal, then, they compared the sub-criteria with respect to the main criteria. At the end,
                        they compared the supplier in relation to each sub-criterion.
                        Figure 3. Real problem hierarchy of supplier selection risk. The linguistic variables were used to
                        make the pair-wise comparisons. These linguistic variables were then converted to triangular fuzzy
                        numbers (TFN), as shown in Table 2. That is, for each numerical value of the pair-wise comparison
                        matrices, three values were associated that correspond to the ‘lower’, ‘middle’ and ‘upper’ values.
                              To define the different priority weights of each criterion, sub-criterion, and alternative
                        supplier, a first fuzzy evaluation matrix was constructed by pair-wise judging the criteria
                        in relation to the general goal, as shown in Table 3.
                               Gg                 C1                  C2                C3             C4        Wo
                               C1             (1, 1, 1)            (1, 1, 1)         (6, 7, 8)       (4, 5, 6)     0
                               C2             (1, 1, 1)            (1, 1, 1)         (9, 9, 9)       (9, 9, 9)     1
                               C3          (1/8, 1/7, 1/6)      (1/9, 1/9, 1/9)      (1, 1, 1)       (1, 1, 1)     0
                               C4          (1/6, 1/5, 1/4)      (1/9, 1/9, 1/9)      (1, 1, 1)       (1, 1, 1)     0
Logistics 2021, 5, 13                                                                                                  10 of 17
                             The values of the fuzzy synthetic extension in relation to each of the criteria were cal-
                        culated using Equation (1) and the fuzzy algebraic operations defined in Equations (2)–(4),
                        according to S1 , S2 , S3 , and S4 :
                                                                                
                                                               1        1     1
                                S1 = (12, 14, 16) ⊗                 ,       ,      = (0.2952, 0.363, 0.438)
                                                          40.638 38.565 36.513
                                                                               
                                                             1        1       1
                              S2 = (20, 20, 20) ⊗                 ,       ,        = (0.4921, 0.5186, 0.5477)
                                                        40.638 38.565 36.513
                                                                                    
                                                                   1        1    1
                           S3 = (2.236, 2.253, 2.277) ⊗               ,       ,        = (0.055, 0.0584, 0.0623)
                                                                40.638 38.565 36.513
                                                                                    
                                                                  1         1   1
                          S4 = (2.277, 2.311, 2.361) ⊗                ,       ,        = (0.056, 0.0599, 0.0646).
                                                               40.638 38.565 36.513
                             The degree of possibility Si over S j (i 6= j) was determined using Equation (6):
Using Equation (8), the minimum degree of possibility was established as:
                               Subc1                 A1                     A2                        A3                WSubc1
                                 A1               (1, 1, 1)              (2, 3, 4)               (4, 5, 6)               0.536
                                 A2            (1/4, 1/3, 1/2)           (1, 1, 1)            (1/8, 1/7, 1/6)              0
                                 A3            (1/6, 1/5, 1/4)           (6, 7, 8)               (1, 1, 1)               0.463
                             At this point, based on the values obtained, we performed the summary combination
                        of the priority weights of the alternatives of suppliers in relation to each of the criteria.
                        For this, the supplier’s weights were added, which were multiplied by the corresponding
                        sub-criteria. To exemplify this procedure, we present the results of Table 6. The same
                        conduct was carried out in the calculation of the weights of the alternatives in relation to
                        the other sub-criteria (Subc4 , . . . , Subc9 ) of the criteria C2 , C3 , and C4 .
                                                                                                              Alternatives Priority
                             Weights          Subc1 0.799         Subc2 0.2                 Subc3 0
                                                                                                                    Weights
                          Alternatives
                                A1               0.536              0.135                     1                      0.4552
                                A2                 0                 0.15                     0                       0.03
                                A3               0.463              0.713                     0                      0.5125
                             Finally, the final priority weights of each supplier were calculated by adding the
                        supplier’s weights multiplied by the corresponding criteria weights. The alternative that
                        obtained the highest priority weight was defined as the best supplier for the company
                        studied. The results of this procedure are shown in Table 7.
                             According to the final score shown in Table 7, the best supplier for the focal company
                        is the A1 which obtained the highest priority weight of the alternatives (0.848), followed
                        by the alternative supplier A2 (0.151). Figure 4 shows this result in the computer system
                        interface developed.
Logistics 2021, 5, 13                                                                                                12 of 17
                        supplier A3 has a higher priority weight in relation to the delivery (C1 ) and financial (C4 )
                        criteria, while supplier A1 has a higher weight in relation to the performance (C2 ) and price
                        (C3 ) criteria. Therefore, sensitivity analysis confirms A1 as the best alternative supplier for
                        the focal company.
                             Finally, we found that the developed computing system adequately supported all the
                        calculation steps of the FEAHP method applied in the real process of supplier selection
                        considering risks. It provided efficient decision problem hierarchy modeling, computed
                        fuzzy extended analysis without failures and/or errors, and provided final priority weight
                        rankings of all evaluated criteria, sub-criteria, and alternatives. The adoption of this
                        computational system allowed automated decision-making support to choose the best
                        supplier for the focal company in a rational, flexible, and agile way. By applying the FEAHP
                        computational approach, the company’s experts have qualitatively perceived a one-off
                        decrease in the effort and time normally required to select a priority supplier. This allowed
                        us to hypothesize that the continued use of the new system by the studied company can
                        promote the improvement of the overall supplier risk evaluation, the reduction of lead
                        time and procurement costs for industrial materials and equipment, and an improved
                        performance of the whole supply chain.
                        linguistically scaled questionnaire. This evaluation was then quantified by calculating the
                        priority weights of criteria, sub-criteria, and alternatives using the FEAHP method. The
                        best decision alternative is the one with the highest final score.
                              We applied the FEAHP computer system to support supplier selection considering
                        risks of a Brazilian oil and natural gas company. The experts identified four criteria,
                        nine sub-criteria, and three alternative suppliers as the most important in the company’s
                        supplier selection process. After the general computation of the final priority weighs,
                        we found that the supplier’s performance (C2 ) criterion is the most important one. This
                        finding is aligned with previous literature in the field which also considers performance
                        as a key criterion regarding supplier selection risks for most companies. The sub-criteria
                        ‘low reliability of the supplier (Subc5 )’, ‘high supplier price (Subc6 )’, and ‘single supply
                        (Subc9 )’ obtained the highest priority weights. In turn, the sub-criterion ‘single supply
                        (Subc9 )’ presented unique importance for the company studied, distinguishing itself from
                        the other sub-criteria typical of most companies. Supplier A1 is the best supplier for the
                        focal company as it obtained the highest priority weight (0.848), followed by alternative
                        supplier A2 (0.151). The sensitivity analysis of the general goal shows that the A1 supplier
                        has the highest priority weight in relation to the criteria performance (C2 ) and price (C3 ),
                        confirming it as the best alternative for the studied company.
                              The FEAHP computational approach rationally, flexibly, and agilely automated the
                        supplier selection process, as qualitatively evidenced by the case study experts. From this,
                        we hypothesized that using this system can provide helpful insights in choosing the best
                        suppliers in an environment of risk and uncertainty, maximizing supply chain performance.
                        This research has some limitations. Since the empirical analysis is based only on a case
                        study of a Brazilian oil company, there are restrictions in generalizing the results, that
                        is, the conclusions of the paper cannot be extended to other companies. In addition, the
                        methodology for evaluating the main criteria, sub-criteria, and alternative suppliers is
                        based on the experience of the company’s experts, so there may be noise and distortion in
                        the respondents’ perception of the accuracy of the information provided.
                              Future research may examine a larger set of business samples, including various
                        industry types or empirical research in other developing countries. In addition, risk and
                        uncertainty criteria from various supply chain echelons as well as emerging social and
                        environmental risk criteria may be added to the proposed model. Finally, further work can
                        be done to analyze the economic efficiency of the FEAHP computational approach, and to
                        compare or integrate it with alternative supplier selection methods based on MCDM, MP,
                        and AI.
                        Author Contributions: Conceptualization, M.V.C.F., B.H. and F.G.M.F.; methodology, M.V.C.F. and
                        F.G.M.F.; programming and software development, M.V.C.F.; data collection and analysis, M.V.C.F.;
                        writing and revision, M.V.C.F., B.H. and F.G.M.F. All authors have read and agreed to the published
                        version of the manuscript.
                        Funding: This research received no external funding.
                        Institutional Review Board Statement: This study did not require ethical review and approval
                        according to the norms of the Graduate Program in Industrial Engineering at the Federal University
                        of Bahia, Brazil.
                        Informed Consent Statement: Informed consent was obtained from all subjects involved in the study.
                        Data Availability Statement: The data presented in this study are available within the article.
                        Acknowledgments: We appreciate the valuable contributions of researchers from the Chair for
                        Information Systems and Supply Chain Management, Department of Information Systems at the
                        Münster School of Business and Economics, University of Münster, Germany.
                        Conflicts of Interest: The authors declare no conflict of interest.
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