A Triple Bottom Line Multi-Criteria Decision Making Framework for Supplier Selection

Author(s):  
Zahra Ebrahim Qazvini ◽  
Mohammad Reza Maleki
Processes ◽  
2019 ◽  
Vol 7 (7) ◽  
pp. 400 ◽  
Author(s):  
Chia-Nan Wang ◽  
Ching-Yu Yang ◽  
Hung-Chun Cheng

Vietnam’s garment industry is facing many challenges, including domestic competition and the global market. The free trade agreement, which Vietnam signed, includes environmental barriers, sustainable development, and green development. The agreement further requires businesses to make efforts to improve not only product quality but also the production process. In cases when enterprises cause environmental pollution in the production process and do not apply solutions to reduce waste, save energy, and natural resources, there is a risk of no longer receiving orders or orders being rejected, especially orders from the world’s major branded garment companies. In this research, the authors propose a multicriteria decision-making model (MCDM) for optimizing the supplier evaluation and selection process for the garment industry using sustainability considerations. In the first stage of this research, all criteria affecting supplier selection are determined by a triple bottom line (TBL) model (economic, environmental, and social aspects) and literature reviews; in addition, the fuzzy analytic hierarchy process (FAHP) method was utilized to identify the weight of all criteria in the second stage. The technique for order preference by similarity to an ideal solution (TOPSIS) is a multicriteria decision analysis method, which is used for ranking potential suppliers in the final stage. As a result, decision-making unit 10 (DMU/10) is found to be the best supplier for the garment industry. The contribution of this research includes modeling the supplier selection decision problem based on the TBL concept. The proposed model also addresses different complex problems in supplier selection, is a flexible design model for considering the evaluation criteria, and is applicable to supplier selection in other industries.


Processes ◽  
2018 ◽  
Vol 6 (12) ◽  
pp. 252 ◽  
Author(s):  
Chia-Nan Wang ◽  
Ying-Fang Huang ◽  
I-Fang Cheng ◽  
Van Nguyen

Suppliers are extremely important in business operations. The supplier ensures the supply of materials, raw materials, commodities, etc. in sufficient quantity, quality, stability, and accuracy to meet the requirements of production and business with low costs and on-time deliveries. Therefore, selecting and managing good suppliers is a prerequisite for organizing the production of quality products as desired, according to the schedule, and with reasonable prices and competitiveness in the market. It is also important to gain the support of suppliers in order to continue to improve and achieve more as a business. The evaluation and selection of a supplier is a Multi-Criteria Decision-Making (MCDM) issue, in which the decision-maker is faced with both qualitative and quantitative factors. In this research, the authors propose an MCDM model using a hybrid of Supply Chain Operations Reference metrics (SCOR metrics), the Analytic Hierarchy Process (AHP) model, and the Technique for Order of Preference by Similarity to Ideal Solution (TOPSIS) approach for supplier evaluation and selection in the gas and oil industry. Using literature reviews on SCOR metrics, all criteria that impact supplier selection are defined in the first stage, the AHP model is applied to determine the weight of each factor in the second stage, and the optimal supplier is presented in final stage using the TOPSIS model. As a result, Decision-Making Unit 5 (DMU-05) is found to be the best supplier for the gas and oil industry in this research. The contribution of this work is to propose a new hybrid MCDM model for supplier selection in the gas and oil industry. This research also introduces a useful tool for supplier selection in other industries.


2022 ◽  
Vol 17 (1) ◽  
pp. 36-51
Author(s):  
Maryam Khokhar ◽  
◽  
Wasim Iqbal ◽  
Yumei Hou ◽  
Muhammad Irshad

In the past ten years, sustainable supply chain management (SSCM) attach great importance due to consumers, for-profit and profitless organizations, laws and regulations to the social and corporate responsibilities of consumers, so it has been recognized by practitioners and scholars. Supplier selection, environmental effect like a lockdown, and social cooperation and other SSCM programs can play an important part in realizing the triple bottom line (TBL) of economic, environmental, social assistances. In supply chain management (SCM), the sustainable supplier selection (SSS) and firm performance plays an important role. Traditionally, when evaluating SSS performance, organizations will consider a new framework to obtain the overall criteria/sub-criteria of the sustainability index by encapsulating sustainability. In this paper 12 sub-criteria for 3 pillars of sustainability as economic, environment and social performance is collected. Although there are many articles on SSS and evaluation, so far, research on sustainability issues is very limited. This study endeavours to propose a fuzzy multi-criteria approach to discuss SSCM planning, and studies the issue of determining a current model for SSS in the supply chain during COVID-19 based on the TBL method. For express the linguistic value of the subjective preference of experts we use triangular fuzzy numbers. By using fuzzy numbers to find standard weights for qualitative performance evaluation, then fuzzy TOPSIS (Technique for Order Preference by Similarity to Ideal Solution) is proposed to find the ranking of SSS. However, COVID-19 has a negative role in SSS and in firm performance. The situation of lockdown due to COVID-19 has a negative effect on the performance of the organizations. An example is given of the proposed method.


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