A supplier selection model with fuzzy risk analysis using the balanced solution technique with a soft set

In this paper, a supplier selection model was developed for a retailer. Suppliers have different influence factors that have a risk of profit loss or less profit as well as a loss of goodwill to a retailer. Thus, a retailer must choose a supplier that can provide better profit and better goodwill. Different suppliers have different business policies. Here, different risk factors and their corresponding severity in profit loss and goodwill loss are considered as a fuzzy number. Next, the total risk in profit loss and goodwill loss is formulated. To select a supplier with the minimum risk, a balanced solution of the soft set theory was applied to a numerical example.