scholarly journals A Fuzzy MCDM Approach for Green Supplier Selection from the Economic and Environmental Aspects

2016 ◽  
Vol 2016 ◽  
pp. 1-10 ◽  
Author(s):  
Hsiu Mei Wang Chen ◽  
Shuo-Yan Chou ◽  
Quoc Dat Luu ◽  
Tiffany Hui-Kuang Yu

Due to the challenge of rising public awareness of environmental issues and governmental regulations, green supply chain management (SCM) has become an important issue for companies to gain environmental sustainability. Supplier selection is one of the key operational tasks necessary to construct a green SCM. To select the most suitable suppliers, many economic and environmental criteria must be considered in the decision process. Although numerous studies have used economic criteria such as cost, quality, and lead time in the supplier selection process, only some studies have taken into account the environmental issues. This study proposes a comprehensive fuzzy multicriteria decision making (MCDM) approach for green supplier selection and evaluation, using both economic and environmental criteria. In the proposed approach, a fuzzy analytic hierarchy process (AHP) is employed to determine the important weights of criteria under vague environment. In addition, a fuzzy technique for order performance by similarity to ideal solution (TOPSIS) is used to evaluate and rank the potential suppliers. Finally, a case study in Luminance Enhancement Film (LEF) industry is presented to illustrate the applicability and efficiency of the proposed method.

2015 ◽  
Vol 22 (5) ◽  
pp. 651-669 ◽  
Author(s):  
Chin-Nung LIAO ◽  
Yan-Kai FU ◽  
Li-Chun WU

In recent years, determining the best supplier in the green supply chain has become a key strategic task for a firm. Since the decision usually involves several objectives or criteria, the green supplier selection process is a fuzzy multiple criteria decision-making (FMCDM) problem. Considering both qualitative and quantitative criteria, this study proposes new integrated fuzzy techniques for fuzzy analytic hierarchy process (FAHP), fuzzy additive ratio assessment (ARASF) and multi-segment goal programming (MSGP) approach to solve the green supplier selection problems. The advantage of this method is that it allows decision makers to set multiple segment aspiration levels for green supplier selection problems. The integrated model is illustrated by an example in a watch firm.


2008 ◽  
Vol 27 (1) ◽  
pp. 49-62
Author(s):  
Sameer Kumar ◽  
John Bisson

With a growing global economy and competition and increased outsourcing, the supplier selection process has gained more focus and importance within many business enterprises for developing an integrated supply network. Analytic Hierarchy Process (AHP) has been identified as an ideal multi-objective decision support tool to assist firms in completing the supplier selection process as part of strengthening their procurement strategies. This paper involved secondary research methods to gain an understanding of AHP, its various applications, and exploration of how to incorporate non-traditional selection criteria such as environmental criterion into the process. AHP's application for optimal supplier selection to support integrated procurement process is illustrated through an example of a Medical Device Manufacturer (MDM), known for established supplier-customer partnerships and alliances. Major limitation in studying this example included data availability to complete a comprehensive AHP decision management model. However, it was found that AHP is a powerful, structured but flexible method of addressing the multi-criteria supplier selection decision that facilitates building an integrated supply chain.


2013 ◽  
Vol 2013 ◽  
pp. 1-22 ◽  
Author(s):  
Nadia Jamil ◽  
Rosli Besar ◽  
H. K. Sim

This paper is designed to present the effectiveness of group multicriteria decision making in automotive manufacturing company focusing on the selection of suppliers in Malaysia. The process of selecting suppliers is one of the most critical and challenging endeavor in any supply chain management. There are five decision making tools being analyzed in this study, namely, analytical hierarchy process (AHP), fuzzy analytical hierarchy process (FAHP), technique for order performance by similarity to ideal solution (TOPSIS), fuzzy technique for order performance by similarity to ideal solution (FTOPSIS), and fuzzy analytical hierarchy process integrated with fuzzy technique for order performance by similarity to ideal solution (FAHPiFTOPSIS). The scores of ranking among the suppliers in each MCDM tools (AHP, FAHP, TOPSIS, FTOPSIS, and FAHPiFTOPSIS) show significantly comparable variation. Scores of the best supplier is then compared to the lowest supplier for all MCDM tools whereby this reflects that the highest percentage goes to TOPSIS with scoring of 79.37%. On the contrary, FAHPiFTOPSIS demonstrated the lowest score variation of 22.42% which indicates that FAHPiFTOPSIS is able to eliminate biasness in supplier selection process.


2016 ◽  
Vol 5 (3) ◽  
Author(s):  
Surajit Bag

This paper argues the use of Analytic Hierarchy Process in service supplier selection process. The literature has evidence of important criteria for supply supplier selection process. However, there is a dearth of studies on service supplier selection process. To address this gap, this paper firstly systematically reviews the existing procurement literature, secondly, it argues for the use of alternative methods research to address questions related to ranking of selection criteria, and thirdly, it proposes and illustrates the use of Analytic Hierarchy Process to analyze the identified criteria. The paper concludes with limitations and further research directions.


2016 ◽  
Vol 11 (1) ◽  
pp. 326-354 ◽  
Author(s):  
Vinod Yadav ◽  
Milind Kumar Sharma

Purpose – The purpose of this paper is to propose a supplier selection model for an automobile company using analytic hierarchy process (AHP) approach. Supplier selection is now growing to be an important but complex issue, as it involves a large number of factors and decisions. These factors have complicated operational and financial implications. Design/methodology/approach – A case study of an Indian automobile company is used to illustrate and propose a supplier selection model using AHP approach. Findings – Key criteria of the supplier selection problem are identified based on the literature review and case study. Then, a model is proposed for supplier selection using AHP approach followed by a detailed sensitivity analysis. Practical implications – This paper contributes to supplier selection process, and points out the importance of supplier selection. It proposes a supplier selection model for an automobile industry which often faces heterogeneous supply environments. The proposed model provides key criteria for supplier selection in Indian context. This model may have high acceptability, where a large number of suppliers are available to supply the materials or provide the services. Originality/value – The proposed model can provide guidelines and directions for managers involved in purchasing function to effectively select suppliers on the basis of the identified criteria in the heterogeneous manufacturing environment.


Buildings ◽  
2019 ◽  
Vol 9 (10) ◽  
pp. 222 ◽  
Author(s):  
Linlin Zhao ◽  
Zhansheng Liu ◽  
Jasper Mbachu

Prefabrication offers substantial benefits including reduction in construction waste, material waste, energy use, labor demands, and delivery time, and an improvement in project constructability and cost certainty. As the material cost accounts for nearly 70% of the total cost of the prefabrication project, to select a suitable material supplier plays an important role in such a project. The purpose of this study is to present a method for supporting supplier selection of a prefabrication project. The proposed method consists of three parts. First, a list of assessment criteria was established to evaluate the suitability of supplier alternatives. Second, Building Information Modelling (BIM) was adopted to provide sufficient information about the project requirements and suppliers’ profiles, which facilitates the storage and sharing of information. Finally, the Analytic Hierarchy Process (AHP) was used to rank the importance of the assessment criteria and obtain the score of supplier alternatives. The suppliers were ranked based on the total scores. To illustrate how to use the proposed method, it was applied to a real prefabrication project. The proposed method facilitates the supplier selection process by providing sufficient information in an effective way and by improving the understanding of the project requirements.


2019 ◽  
Vol 21 (3) ◽  
pp. 351-371
Author(s):  
Anirban Ganguly ◽  
Chitresh Kumar ◽  
Debdeep Chatterjee

Supplier selection is the process by which firms identify, evaluate and contract with suppliers. The supplier selection process deploys a tremendous amount of a firm’s operational and financial resources and is considered as an important determinant of the success of its supply chain. In spite of being strategically important to organizations, the decision for supplier selection is often complex and unstructured. Furthermore, it is inherently a multi-criterion decision-making (MCDM) problem, which pertains to structuring and solving decision problems involving multiple criteria. The paper provides a framework to analyze and evaluate supplier selection in Indian pharmaceutical sector (IPS) using MCDM technique of fuzzy analytic hierarchy process. It intends to improve managerial decision-making in the IPS in developing a supplier selection strategy based on multi-criteria evaluation technique.


2015 ◽  
Vol 22 (6) ◽  
pp. 1158-1174 ◽  
Author(s):  
Vinod Yadav ◽  
Milind Kumar Sharma

Purpose – The purpose of this paper is to propose a multi-criteria supplier selection model using fuzzy analytical hierarchy process (FAHP) approach for a leading automobile company in India. Design/methodology/approach – FAHP approach followed by a sensitivity analysis has been used. Findings – In this study, a FAHP-based supplier selection model is proposed to provide useful insights in choosing appropriate suppliers in dynamic situations in order to enhance long-term relationship with them. Practical implications – This study proposes a supplier selection model for an automobile industry which often faces heterogeneous supply environments. This model may have a high acceptability where a large number of suppliers are available to supply the materials or provide the services. As analytic hierarchy process is the most widely used methodology for supplier selection, however, it becomes less efficient in case of inconsistencies observed in the data. However a FAHP-based approach may overcome this difficulty. Originality/value – It contributes to supplier selection process and points out the importance of supplier selection problem, especially in the context of multi-criteria decision-making in Indian scenario.


2014 ◽  
Vol 14 (2) ◽  
pp. 192
Author(s):  
Annisa Kesy Garside ◽  
Martina Juan

Annisa Kesy Garside dan Martina JuanKristiandyRISTIANDYJurusan Teknik Industri, Universitas Muhammadiyah MalangJl. Raya Tlogomas 246 Malang 65144 Jawa TimurLaman: [email protected], [email protected] pemasok menjadi pertimbangan penting untuk meningkatkan efisiensi bagian pengadaan bahan baku mengingat biaya material dapat mencapai 70% dari biaya produk. Pemilihan pemasok seringkali merupakan permasalahan multi kriteria yang melibatkan faktor kualitatif dan kuantitatif. UD Virgo Snack Bersinar merupakan perusahaan pembuat keripik buah-buahan yang berlokasi di Malang. Perusahaan sering mengalami kekurangan pasokan buah nangka yang mengganggu jalannya proses produksi, sehingga perlu dilakukan pemilihan pemasok buah nangka secara selektif dengan mempertimbangkan kriteria-kriteria yang ditetapkan oleh perusahaan dan pengalokasian pesanan kepada supplier terpilih. Pada penelitian ini akan mengintegrasikan bobot pemasok dari hasil Analytic Hierarchy Process dengan model � PreemptiveGoalProgramminguntukmenentukanprioritasdankuantitaspesananPreemptive Goal Programming untukmenentukanprioritasdankuantitaspesanan untuk menentukan prioritas dan kuantitas pesanan kepada pemasok. Model diformulasikan untuk mencapai dua fungsi tujuan yaitu maksimasi total nilai pembelian dan minimasi total biaya pembelian serta mempertimbangkan batasan kapasitas pemasok dan pemenuhan kebutuhan buah nangka. Dari hasil running model goal programming diperoleh supplier dari Semarang akan memasok buah nangka sebanyak 7,5 ton pada periode November 2013 – Januari 2014 dan kekurangan pasokan untuk menutupi kebutuhan buah nangka dipasok oleh supplier dari Tajinan.Kata kunci: buah nangka, pemasok, bobot pemasok, goal programming, analytic hierarchy processABSTRACTConsidering that raw material cost could reach 70% of product cost, supplier selection process was become important consideration to improve the efficiency of procurement department. The supplier selection process was multi-criteria problem involving qualitative and quantitative factors. UD Virgo Bersinar was one of fruit chips manufacturer located in Malang. The company often experienced shortage of jackfruits which interrupt production process. Thus, it was necessary to choose its supplier by considering company’s criteria and order allocation of selected supplier. This research would integrate supplier weight from Analytic Hierarchy Process and Preemptive Goal Programming model to determine priority of supplier and order quantity to the supplier. The model was formulated to achieve two objective functions, namely maximizing total value of purchasing and minimizing total cost of purchasing, by considering capacity of supplier and fulfillment of jackfruit. By running goal programming model, it was concluded that supplier from Semarang would supply 7.5 ton of jackfruit in November 2013-Januari 2014 and deficiency of needs would be supplied by supplier from Tajinan.Keywords: jackfruit, supplier,supplier weight, goal programming, analytic hierarchy process


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