Vendor Performance Measurement Using Fuzzy Logic Controller

The era of globalization has begun and organizations endeavor to increase their market share in the competitive environment. To achieve the mentioned goal, organizations should increase their effectiveness as a major strategy in order to improve their performance. Performance measurement as a managerial key can be used for monitoring activities in organizations. Vendors’ selection is one of the issues which influence the efficiency of organizations. Therefore, performance measurement of vendors plays a vital role in firms. Many conceptual and analytical models have been developed for addressing vendor selection problems. Hence, a suitable approach is needed to consider all the factors in order to select the most efficient vendor. In this paper, fuzzy logic controller as a robust and easy understanding approach is applied to transform the quantitative variable to linguistic terms in order to measure the vendors’ performance. Four criteria which can influence vendors’ performance are considered. The criteria are service quality, price, lateness deliveries and rate of rejected parts.