Sustainable Supplier Selection Process in Edible Oil Production by a Hybrid Fuzzy Analytical Hierarchy Process and Green Data Envelopment Analysis for the SMEs Food Processing Industry

Today, business organizations are facing increasing pressure from a variety of sources to operate using sustainable processes. Thus, most companies need to focus on their supply chains to enhance sustainability to meet customer demands and comply with environmental legislation. To achieve these goals, companies must focus on criteria that include CO2 (carbon footprint) and toxic emissions, energy use and efficiency, wastage generations, and worker health and safety. As in other industries, the food processing industry requires large inputs of resources, which results in several negative environmental effects; thus, decision-makers have to evaluate qualitative and quantitative factors. This work identifies the best supplier for edible oil production in the small and medium enterprise (SME) food processing industry in Vietnam. This study also processes a hybrid multicriteria decision-making (MCDM) model using a fuzzy analytical hierarchy process (FAHP) and green data envelopment analysis (GDEA) model to identify the weight of all criteria of a supplier’s selection process based on opinions from company procurement experts. Subsequently, GDEA is applied to rank all potential supplier lists. The primary objective of this work is to present a novel approach which integrates FAHP and DEA for supplier selection and also consider the green issue in edible oil production in uncertain environments. The aim of this research is also to provide a useful guideline for supplier selection based on qualitative and quantitative factors to improve the efficiency of supplier selection in the food industry and other industries. The results reveal that Decision-Making Unit 1 (DMU 1), DMU 3, DMU 7, and DMU 9 are identified as extremely efficient for five DEA models, which are the optimal suppliers for edible oil production. The contributions of this research include a proposed MCDM model using a hybrid FAHP and GDEA model for supplier selection in the SME food processing industry under a fuzzy environment conditions in Vietnam. This research also is part of an evolution of a new hybrid model that is flexible and practical for decision-makers. In addition, the research also provides a useful guideline in supplier selection in the food processing industry and a guideline for supplier selection in other industries.

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Fuzzy AHP, DEA, and Managerial Analysis for Supplier Selection and Development; From the Perspective of Open Innovation

Sustainability ◽

10.3390/su10103779 ◽

2018 ◽

Vol 10 (10) ◽

pp. 3779 ◽

Cited By ~ 13

Author(s):

Maimouna Diouf ◽

Choonjong Kwak

Keyword(s):

Supplier Selection ◽

Fuzzy Ahp ◽

Supplier Management ◽

Decision Makers ◽

Practical Reasons ◽

Data Envelopment ◽

Supplier Development ◽

Rank And Select ◽

The Impact ◽

Hierarchy Process

Supplier management is critical for supply chain management (SCM). The aim of supplier selection is to find an order of preference among potential suppliers. However, the ranking results for supplier selection may not be important, particularly when the performances are conflicting or have minor differences. Different criteria may have different impacts on the ranking results, and different decision makers may place different priorities on multiple criteria. Relatively worse suppliers may still have to be used for many practical reasons. One alternative is supplier development, but it has been focused on categorizing individual suppliers for possible action plans. A new framework is proposed in this research to address supplier selection and supplier development at the same time in the publishing and printing industries. First, the fuzzy analytical hierarchy process (fuzzy AHP) and data envelopment analysis (DEA) are sequentially performed to rank and select the best supplier(s) of a publishing company. In addition to ranking suppliers, a managerial analysis is proposed to assess the impact of important criteria on supplier selection in more detail. Finally, the results of the DEA are provided for direct supplier development without supplier categorization. This research shows that the proposed framework effectively addresses supplier development as well as supplier selection in the publishing and printing industries.

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An application of hybrid data envelopment analytical hierarchy process approach for supplier selection

Journal of Enterprise Information Management ◽

10.1108/jeim-04-2014-0041 ◽

2015 ◽

Vol 28 (2) ◽

pp. 218-242 ◽

Cited By ~ 21

Author(s):

Vinod Yadav ◽

Milind Kumar Sharma

Keyword(s):

Analytical Hierarchy Process ◽

Supplier Selection ◽

Selection Process ◽

Selection Problem ◽

Data Envelopment ◽

Content Type ◽

Hybrid Data ◽

Hierarchy Process ◽

A Company ◽

Supplier Selection Problem

Purpose – The problem of supplier selection gets complicated when a company looks for various criteria to evaluate different suppliers. The decision criteria used for supplier selection process can be different for different organizations due to a large number of factors. Hence, it can be said that supplier selection is basically, a multiple criteria decision-making (MCDM) problem. The purpose of this paper is to propose a hybrid data envelopment analytical hierarchy process (DEAHP) approach to solve the supplier selection problem for an automobile company. Design/methodology/approach – In this study, the data envelopment analysis (DEA) approach is embedded into analytic hierarchy process (AHP) methodology. Literature review suggested that majority of researches found it appropriate using DEA and AHP methodologies for supplier selection process; hence it is felt that a hybrid DEAHP would be a useful methodology to offer a MCDM model for supplier selection problem. Findings – First, the key criteria of the supplier selection problem for the company are identified. Then a model is developed and implemented for supplier selection using DEAHP approach. This study concluded that quality, cost and service are the most crucial criteria for an automobile company operational in a developing country like India. Sensitivity analysis further helped to evaluate suppliers based on each criterion. Research limitations/implications – As this analysis and findings are based on only one case study of an Indian automobile company, and this necessitates caution in interpreting the results. The limited number of interviewed managers in a company restricts the generalizability of the results. Though the company selected for this study is typical of developing country businesses, the findings of the paper may not be readily extensible to other companies. Second, this study used retrospective settings, based on the interviewed feedback after the events had occurred. This method naturally poses limitations due to respondent recall and the accuracy of information provided. Third, the problem chosen for this study is based in a single country context and further additional research will be required to examine if the findings could be extended to other automobile companies in other developing nations. Also in some cases technique used in the study may pose some extra computational efforts. Practical implications – This study points out the importance of the supplier selection problem. It provides key criteria for supplier selection in Indian context also proposes a framework to deal with multiple criteria. proposed model deals with two crucial criteria long term relationships and flexibility which were relatively less discussed and considered in the literature in past. Originality/value – The proposed MCDM model can provide the guidelines and directions for the decision makers to effectively choose suppliers in the current competitive environment.

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The Ideal Criteria of Supplier Selection for SMEs Food Processing Industry

MATEC Web of Conferences ◽

10.1051/matecconf/20167005006 ◽

2016 ◽

Vol 70 ◽

pp. 05006

Author(s):

Rohaizan Ramlan ◽

Engku Muhammad Nazri Engku Abu Bakar ◽

Fatimah Mahmud ◽

Hooi Keng Ng

Keyword(s):

Food Processing ◽

Supplier Selection ◽

Food Processing Industry ◽

Processing Industry ◽

Selection For ◽

The Ideal

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INTEGRATED FAHP, ARAS-F AND MSGP METHODS FOR GREEN SUPPLIER EVALUATION AND SELECTION

Technological and Economic Development of Economy ◽

10.3846/20294913.2015.1072750 ◽

2015 ◽

Vol 22 (5) ◽

pp. 651-669 ◽

Cited By ~ 31

Author(s):

Chin-Nung LIAO ◽

Yan-Kai FU ◽

Li-Chun WU

Keyword(s):

Supplier Selection ◽

Selection Process ◽

Multiple Criteria Decision Making ◽

Decision Makers ◽

Analytic Hierarchy ◽

Green Supplier Selection ◽

Selection Problems ◽

Aspiration Levels ◽

Fuzzy Techniques ◽

Hierarchy Process

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.

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