Academic journal article Business and Economics Research Journal

A Multi-Criteria Evaluation for Sustainable Supplier Selection Based on Fuzzy Sets *

Academic journal article Business and Economics Research Journal

A Multi-Criteria Evaluation for Sustainable Supplier Selection Based on Fuzzy Sets *

Article excerpt

(ProQuest: ... denotes formulae omitted.)

1. Introduction

Importance of sustainable issues have gained much more interest from several customers, researchers and industry experts due to our global future depend on it. Sustainability can be defined by three core elements that are very much linked to one another: economic, environmental and social. Companies should take into consideration sustainable issues to make strategic decisions such as cost savings, risk mitigation, tax incentives, and resource limitations. A company's sustainable performance is not solely dependent on its performance, it is also impressed by the suppliers' performance.

Supplier selection is the most crucial parts of logistics operations due to its direct impact on cash flow and profitability (Banaeian et al., 2018). Suppliers have a critical role for companies in production, delivery, and sustainable issues to increase the quality of products and focus on a specific part of operations. Therefore, the selection of suppliers is an important decision-making problem (Hamdan & Cheaitou, 2017).

The decision-making process in supplier selection is usually complex and difficult process that the decision makers cannot take a decision with a single criterion. In order to solve these problems, an appropriate approach would be the MCDM methods (Aruldoss et al., 2013). MCDM methods deal with the problem of identifying and choosing alternatives according to the criteria that are defined by the decision makers. The main features of an MCDM method include (1) evaluation of criteria, (2) rating of alternatives with respect to criteria, (3) rating of alternatives on the criteria, and (4) a measure for the comparing the criteria (Thokala & Duenas, 2012).

A company's sustainability performance should be assessed not only by taking into account its own activities but also by taking account of suppliers' performance. Cooperating with suppliers who attach importance to sustainability issues and put into practice them can help to improve the sustainability performance of companies. Even though companies consider specific criteria when assessing suppliers' performance they should consider sustainability for achieving economic profitability and competition.

Integration of sustainability has been increased since the late 1990s. Companies have begun to feel responsible for controlling their sustainability practices, thus many researchers have attempted to analyse sustainability in logistics management. In sustainable logistics management, SSS is a very difficult issue that suppliers' performance depends on several conflicting criteria.

Many studies have undertaken to improve supplier selection methods in view of the TBL performance of suppliers (Bai & Sarkis, 2010; Shaw et al., 2012; Shen et al., 2013; Govindan et al., 2013; Wang & Chan 2013; Kumar et al., 2014; Sarkis & Dhavale 2015; Mahdiloo et al., 2015; Akman, 2015; Trapp & Sarkis, 2016). Also, many studies have been implemented using TOPSIS method for supplier selection. Singh et al. (2018) employed FAHP, DEMATEL and TOPSIS methods to handle carbon footprint of suppliers in agri-food sector. Jolai et al. (2011) used TOPSIS method to obtain the ratings of suppliers in their approach. They constructed a multi-objective mixed integer linear programming for order allocation. Banaeian et al. (2018) compared the TOPSIS, VIKOR and GRA methods with fuzzy sets to select green suppliers. Chen et al. (2006) assessed suppliers' performance using fuzzy TOPSIS method in group decision-making process. Awasthi et al. (2010) obtained suppliers enviromental performance score with fuzzy TOPSIS. Önüt et al. (2009) proposed a fuzzy ANP and fuzzy TOPSIS framework for a telecommunication company. Büyüközkan and Çifçi (2012) proposed a hybrid approach consists of DEMATEL, ANP and TOPSIS methods for evaluation of green suppliers. Wang et al. (2009) developed fuzzy hierarchical TOPSIS method. …

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