An integrated fuzzy-goal-programming-based framework for selecting suppliers in strategic alliance formation

There has been an exponential growth in the number of strategic alliances formed in the last decade between manufacturers and their suppliers. Yet 60-70% of these alliances fail in their first year. One of the reasons for such failure is the incompatibility of members of the alliance. Hence, there is a need for a tool to help decision makers to rate the compatibility of potential partners in a strategic alliance. This paper fulfills this requirement by presenting an integrated method for rating the compatibility of potential members of a strategic alliance. The method utilizes a model based on fuzzy logic/goal programming to analyze the vague, imprecise, and usually subjective information regarding the compatibility of potential suppliers that is available during the early formation of a strategic partnership. A sample case study is presented to demonstrate the application of the framework.