Including Sustainability Strategy For Supplier Selection And Evaluating Selection Criteria With Fuzzy AHP

Year 2023, Volume: 5 Issue: 3, 180 - 190, 13.10.2023

D. Özgün Sarıoğlu

https://doi.org/10.47933/ijeir.1269399

Abstract

Businesses in an effort to create a sustainable supply chain try to make their production processes the least harmful to the environment. In that way, they expect the companies that they supply raw materials, semi-finished products and other materials used in production, which directly affect the production process, to be sensitive to the environment. For this reason, the first collaborative partners of companies that carry out sustainability studies are their suppliers. This makes supplier selection important. In the literature, basic criteria such as price, quality and performance are frequently encountered in supplier selection studies. In addition to these basic criteria, adding criteria for sustainability will strengthen the management strategy. The aim of this study is to create a guide for supplier evaluation that includes sustainability criteria. For this, in the first part of the study, supplier selection criteria are determined by considering the sustainability strategy. In the second part, the order of importance of these criteria is calculated. Taking into the sustainability report of the company, three new sustainability criteria that the business finds important were determined as "supplier's sustainability score", "CO2 emissions in the supply process", "supplier's level of working with sustainable suppliers". according to the business strategy, Eight supplier criteria were weighted with the fuzzy AHP method. It is seen that the company attaches importance to sustainability studies at the beginning level in supplier evaluation.

Keywords

Sustainable Supply, Fuzzy AHP, Supplier Selection, Sustainable Inbound Logistics, Decision Making.

References

• [1] Dickson, G. W. (1996), An analysis of vendor selection systems and decisions, Journal of Purchasing 2(1), 5-17.
• [2] Noci,G. & Toletti, G. (2000), Selecting quality-based programmes in small firms: A comparison between the fuzzy linguistic approach and the analytic hierarchy process,International Journal of Production Economics, 67(2), 113-133. DOI:10.1016/S0925-5273(99)00131-0.
• [3] Handfield, R., Walton, S. V., Sroufe, R., & Melnyk, S. A. (2002), Applying environmental criteria to supplier assessment: A study in the application of the Analytical Hierarchy Process. European Journal Of Operational Research, 141(1), 70-87.
• [4] Güner, H. (2005), Bulanık AHP ve bir işletme için tedarikçi seçimi problemine uygulanması (Master's thesis, Pamukkale Üniversitesi Fen Bilimleri Enstitüsü).
• [5] Hsu, C. W., & Hu, A. H. (2009), Applying hazardous substance management to supplier selection using analytic network process, Journal Of Cleaner Production, 17(2), 255-264.
• [6] Büyüközkan, G., & Çifçi, G. (2011), A novel fuzzy multi-criteria decision framework for sustainable supplier selection with incomplete information, Computers In Industry, 62(2), 164-174.
• [7] Tsui, C. W., Tzeng, G. H., & Wen, U. P. (2015), A hybrid MCDM approach for improving the performance of green suppliers in the TFT-LCD industry, International Journal of Production Research, 53(21), 6436-6454.
• [8] Hashemi, S. H., Karimi, A., & Tavana, M. (2015), An integrated green supplier selection approach with analytic network process and improved Grey relational analysis, International Journal of Production Economics, 159, 178-191.
• [9] Sancaklı, E. (2019), Tekstil Sektöründe Metal Aksesuar Tedarikçilerinin Performans Değerlendirme Sürecinde Bulanik Analitik Hiyerarşi Ve Bulanik Topsis Yöntemlerinin Uygulanmasi, İstanbul Ticaret Üniversitesi Fen Bilimleri Dergisi , 18 (35) , 17-41.
• [10] Zhou, X., Xu, Z. (2018), An integrated sustainable supplier selection approach based on hybrid information aggregation. Sustainability, 10(7), 1–49. https://doi.org/10. 3390/su10072543.
• [11] Vahidi, F., Torabi, S. A., Ramezankhani, M. J. (2017), Sustainable supplier selection and order allocation under operational and disruption risks. J. Clean. Prod, 174, 1351–1365. https://doi.org/10.1016/j.jclepro.2017.11.012.
• [12] Lin, K. P., Hung, K. C., Lin, Y. T., Hsieh, Y. H. (2017), Green suppliers performance evaluation in belt and road using fuzzy weighted average with social media information. Sustainability, 10(1), 5. https://doi.org/10.3390/su10010005.
• [13] Wang, K. Q., Liu, H. C., Liu, L., Huang, J. (2017), Green supplier evaluation and selection using cloud model theory and the QUALIFLEX method. Sustainability, 9(5),688. https://doi.org/10.3390/su9050688.
• [14] Kuo, T. C., Hsu, C. W., Li, J. Y. (2015), Developing a green supplier selection model by using the DANP with VIKOR. Sustainability, 7(2), 1661–1689. https://doi.org/10.3390/ su7021661.
• [15] Jia, P., Govindan, K., Choi, T. M., Rajendran, S. (2015), Supplier selection problems in fashion business operations with sustainability considerations. Sustainability, 7(2), 1603–1619. https://doi.org/10.3390/su7021603.
• [10] Yager, R. R. (1978), Fuzzy decision making including unequal objectives. Fuzzy Sets Syst 1:87–95.
• [11] Aktepe, A., & Ersoz, S. (2011), A fuzzy analytic hierarchy process model for supplier selection and a case study. International Journal of Engineering Research and Development, 3(1), 33-36.
• [12] Prakash, T. N. (2003). Land suitability analysis for agricultural crops: a fuzzy multicriteria decision making approach. Enchede, The Netherlands: ITC.
• [13] Saaty, T. L. (2001), Deriving the AHP 1-9 scale from first principles. ISAHP 2001 proceedings, Bern, Switzerland, 397-402.
• [14] Hus, T. H., & Nian, S. H. (1997), Interactive fuzzy decision aided systems-a case on public transportation system operations. Journal of Transportation Taiwan, 10(4), 79-96.
• [15] Lious, T. S., & Wang, M. J. J. (1992), Ranking fuzzy numbers with integral value. Fuzzy Sets and Systems, 50(3), 247–255. DOI:10.1016/0165-0114(92)90223-Q
• [16] Şener, T., Güleş, H., Çağlıyan, V., (2014), Hazır Giyim Sektöründe Analitik Hiyerarşi Prosesi Yöntemine Dayalı Tedarikçi Seçimi, Selçuk University Journal of Institute of Social Sciences, Dr. Mehmet Yıldız Special Edition, 159-170.
• [17] Chen, S.J. & Hwang, C.L., (1992), Fuzzy Multible Attribute Decision Making: Methods and Its Applications, Lecture Notes in Economics and Maths., Springer- Verlag, Germany.
• [18] Chang, D.Y. (1996), Applications Of The Extent Analysis Method On Fuzzy AHP, European Journal of Operational Research, Volume 95 (3), 649-655. DOI: 10.1016/0377-2217(95)00300-2