Integrating sustainability into supplier selection: a grey-based TOPSIS analysis
Abstract
Sustainable supplier selection plays an important role in sustainable supply chain management operations and implementation. In this paper a novel formal modeling approach is conceptually developed and presented to address sustainable supplier selection. Grey theory and TOPSIS, a distance based multiple criteria method, are used for the integration and evaluation of sustainable supplier performance for sustainable supplier selection. From a research perspective, TOPSIS is improved to more effectively deal with grey numbers by integrating a degree of likelihood rather than converting grey numbers into crisp numbers functions, and it provides more flexible supplier rankings. This methodology strengthens the sustainable supplier selection process, and can be applied to other multiple criteria decision making problems. Illustrative calculations are made using data on sustainable supplier selection and evaluation published by Bai and Sarkis (2010). The technique is relatively accurate, matching well with results from a published grey rough set approach. The methodology easily implementable with minimal complex calculations required. It can also provide support for sustainable supplier selection, benchmarking, and improvement decisions. This is one of the first papers to integrate a broad set of sustainability factors for grey-based TOPSIS and supplier selection.
Keyword : supply chain management, multiple criteria evaluation, supplier selection, performance evaluation, grey set theory, TOPSIS
How to Cite
Bai, C., & Sarkis, J. (2018). Integrating sustainability into supplier selection: a grey-based TOPSIS analysis. Technological and Economic Development of Economy, 24(6), 2202-2224. https://doi.org/10.3846/tede.2018.5582
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
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Fallahpour, A., Amindoust, A., Antuchevičienė, J., & Yazdani, M. (2017). Nonlinear genetic-based model for supplier selection: a comparative study. Technological and Economic Development of Economy, 23(1), 178-195. https://doi.org/10.3846/20294913.2016.1189461
Gauthier, C. (2005). Measuring corporate social and environmental performance: the extended life-cycle assessment. Journal of Business Ethics, 59(1), 199-206. https://doi.org/10.1007/s10551-005-3416-x
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Ho, W., Xu, X., & Dey, P. K. (2010). Multi-criteria decision making approaches for supplier evaluation and selection: a literature review. European Journal of Operational Research, 202(1), 16-24. https://doi.org/10.1016/j.ejor.2009.05.009
Junior, F. R. L., Osiro, L., & Carpinetti, L. C. R. (2014). A comparison between Fuzzy AHP and Fuzzy TOPSIS methods to supplier selection. Applied Soft Computing, 21, 194-209. https://doi.org/10.1016/j.asoc.2014.03.014
Kannan, D., Govindan, K., & Rajendran, S. (2015). Fuzzy Axiomatic Design approach based green supplier selection: a case study from Singapore. Journal of Cleaner Production, 96, 194-208. https://doi.org/10.1016/j.jclepro.2013.12.076
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Labuschagne, C., Brent, A. C., & Claasen, S. J. (2005). Environmental and social impact considerations for sustainable project life cycle management in the process industry. Corporate Social Responsibility and Environmental Management, 12(1), 38-54. https://doi.org/10.1002/csr.76
Luthra, S., Govindan, K., Kannan, D., Mangla, S. K., & Garg, C. P. (2017). An integrated framework for sustainable supplier selection and evaluation in supply chains. Journal of Cleaner Production, 140, 1686-1698. https://doi.org/10.1016/j.jclepro.2016.09.078
Mahdiloo, M., Saen, R. F., & Lee, K. H. (2015). Technical, environmental and eco-efficiency measurement for supplier selection: an extension and application of data envelopment analysis. International Journal of Production Economics, 168, 279-289. https://doi.org/10.1016/j.ijpe.2015.07.010
Mani, V., Gunasekaran, A., & Delgado, C. (2018). Enhancing supply chain performance through supplier social sustainability: an emerging economy perspective. International Journal of Production Economics, 195, 259-272. https://doi.org/10.1016/j.ijpe.2017.10.025
Rezaei, J., Nispeling, T., Sarkis, J., & Tavasszy, L. (2016). A supplier selection life cycle approach integrating traditional and environmental criteria using the best worst method. Journal of Cleaner Production, 135, 577-588. https://doi.org/10.1016/j.jclepro.2016.06.125
Sarkis, J., & Talluri, S. (2002). A model for strategic supplier selection. Journal of Supply Chain Management, 38(1), 18-28. https://doi.org/10.1111/j.1745-493X.2002.tb00117.x
Sarkis, J., & Dhavale, D. G. (2015). Supplier selection for sustainable operations: a triple-bottom-line approach using a Bayesian framework. International Journal of Production Economics, 166, 177-191. https://doi.org/10.1016/j.ijpe.2014.11.007
Shahryari Nia, A., Olfat, L., Esmaeili, A., Rostamzadeh, R., & Antuchevičienė, J. (2016). Using fuzzy Choquet Integral operator for supplier selection with environmental considerations. Journal of Business Economics and Management, 17(4), 503-526. https://doi.org/10.3846/16111699.2016.1194315
Wilhelm, M. M., Blome, C., Bhakoo, V., & Paulraj, A. (2016). Sustainability in multi-tier supply chains: understanding the double agency role of the first-tier supplier. Journal of Operations Management, 41, 42-60. https://doi.org/10.1016/j.jom.2015.11.001
Awasthi, A., Chauhan, S. S., & Goyal, S. (2010). A fuzzy multicriteria approach for evaluating environmental performance of suppliers. International Journal of Production Economics, 126(2), 370-378. https://doi.org/10.1016/j.ijpe.2010.04.029
Awasthi, A., Govindan, K., & Gold, S. (2018). Multi-tier sustainable global supplier selection using a fuzzy AHP-VIKOR based approach. International Journal of Production Economics, 195, 106-117. https://doi.org/10.1016/j.ijpe.2017.10.013
Awasthi, A., & Kannan, G. (2016). Green supplier development program selection using NGT and VIKOR under fuzzy environment. Computers & Industrial Engineering, 91, 100-108. https://doi.org/10.1016/j.cie.2015.11.011
Bai, C., Dhavale, D., & Sarkis, J. (2016). Complex investment decisions using rough set and fuzzy c-means: an example of investment in green supply chains. European Journal of Operational Research, 248(2), 507-521. https://doi.org/10.1016/j.ejor.2015.07.059
Bai, C., & Sarkis, J. (2010). Integrating sustainability into supplier selection with grey system and rough set methodologies. International Journal of Production Economics, 124(1), 252-264. https://doi.org/10.1016/j.ijpe.2009.11.023
Bai, C., & Sarkis, J. (2012). Supply-chain performance-measurement system management using neighbourhood rough sets. International Journal of Production Research, 50(9), 2484-2500. https://doi.org/10.1080/00207543.2011.581010
Bai, C., & Sarkis, J. (2013). A grey-based DEMATEL model for evaluating business process management critical success factors. International Journal of Production Economics, 146(1), 281-292. https://doi.org/10.1016/j.ijpe.2013.07.011
Bai, C., & Sarkis, J. (2017). Improving green flexibility through advanced manufacturing technology investment: modeling the decision process. International Journal of Production Economics, 188, 86-104. https://doi.org/10.1016/j.ijpe.2017.03.013
Bai, C., & Sarkis, J. (2018a). Integrating and extending data and decision tools for Sustainable third-party reverse logistics provider selection. Computers & Operations Research, 1-20. https://doi.org/10.1016/j.cor.2018.06.005
Bai, C., & Sarkis, J. (2018b). Evaluating complex decision and predictive environments: the case of green supply chain flexibility. Technological and Economic Development of Economy, 24(4), 1630-1658. https://doi.org/10.3846/20294913.2018.1483977
Chai, J., Liu, J. N., & Ngai, E. W. (2013). Application of decision-making techniques in supplier selection: a systematic review of literature. Expert Systems with Applications, 40(10), 3872-3885. https://doi.org/10.1016/j.eswa.2012.12.040
Chan, F. T. S. (2003). Performance measurement in a supply chain. International Journal of Advanced Manufacturing Technology, 21(7), 534-548. https://doi.org/10.1007/s001700300063
Chatterjee, K., & Samarjit, K. A. R. (2018). Supplier selection in Telecom supply chain management: a Fuzzy-Rasch based COPRAS-G method. Technological and Economic Development of Economy, 24(2), 765-791. https://doi.org/10.3846/20294913.2017.1295289
Deng, J. L. (1989). Introduction to grey system theory. The Journal of Grey System, 1(1), 1-24.
Fallahpour, A., Olugu, E. U., Musa, S. N., Wong, K. Y., & Noori, S. (2017). A decision support model for sustainable supplier selection in sustainable supply chain management. Computers & Industrial Engineering, 105, 391-410. https://doi.org/10.1016/j.cie.2017.01.005
Fallahpour, A., Amindoust, A., Antuchevičienė, J., & Yazdani, M. (2017). Nonlinear genetic-based model for supplier selection: a comparative study. Technological and Economic Development of Economy, 23(1), 178-195. https://doi.org/10.3846/20294913.2016.1189461
Gauthier, C. (2005). Measuring corporate social and environmental performance: the extended life-cycle assessment. Journal of Business Ethics, 59(1), 199-206. https://doi.org/10.1007/s10551-005-3416-x
Genovese, A., Lenny Koh, S., Bruno, G., & Esposito, E. (2013). Greener supplier selection: state of the art and some empirical evidence. International Journal of Production Research, 51(10), 2868-2886. https://doi.org/10.1080/00207543.2012.748224
Ho, W., Xu, X., & Dey, P. K. (2010). Multi-criteria decision making approaches for supplier evaluation and selection: a literature review. European Journal of Operational Research, 202(1), 16-24. https://doi.org/10.1016/j.ejor.2009.05.009
Junior, F. R. L., Osiro, L., & Carpinetti, L. C. R. (2014). A comparison between Fuzzy AHP and Fuzzy TOPSIS methods to supplier selection. Applied Soft Computing, 21, 194-209. https://doi.org/10.1016/j.asoc.2014.03.014
Kannan, D., Govindan, K., & Rajendran, S. (2015). Fuzzy Axiomatic Design approach based green supplier selection: a case study from Singapore. Journal of Cleaner Production, 96, 194-208. https://doi.org/10.1016/j.jclepro.2013.12.076
Kumar, A., Jain, V., & Kumar, S. (2014a). A comprehensive environment friendly approach for supplier selection. Omega, 42(1), 109-123. https://doi.org/10.1016/j.omega.2013.04.003
Kumar, D. T., Palaniappan, M., Kannan, D., & Shankar, K. M. (2014b). Analyzing the CSR issues behind the supplier selection process using ISM approach. Resources, Conservation and Recycling, 92, 268-278. https://doi.org/10.1016/j.resconrec.2014.02.005
Labuschagne, C., Brent, A. C., & Claasen, S. J. (2005). Environmental and social impact considerations for sustainable project life cycle management in the process industry. Corporate Social Responsibility and Environmental Management, 12(1), 38-54. https://doi.org/10.1002/csr.76
Luthra, S., Govindan, K., Kannan, D., Mangla, S. K., & Garg, C. P. (2017). An integrated framework for sustainable supplier selection and evaluation in supply chains. Journal of Cleaner Production, 140, 1686-1698. https://doi.org/10.1016/j.jclepro.2016.09.078
Mahdiloo, M., Saen, R. F., & Lee, K. H. (2015). Technical, environmental and eco-efficiency measurement for supplier selection: an extension and application of data envelopment analysis. International Journal of Production Economics, 168, 279-289. https://doi.org/10.1016/j.ijpe.2015.07.010
Mani, V., Gunasekaran, A., & Delgado, C. (2018). Enhancing supply chain performance through supplier social sustainability: an emerging economy perspective. International Journal of Production Economics, 195, 259-272. https://doi.org/10.1016/j.ijpe.2017.10.025
Rezaei, J., Nispeling, T., Sarkis, J., & Tavasszy, L. (2016). A supplier selection life cycle approach integrating traditional and environmental criteria using the best worst method. Journal of Cleaner Production, 135, 577-588. https://doi.org/10.1016/j.jclepro.2016.06.125
Sarkis, J., & Talluri, S. (2002). A model for strategic supplier selection. Journal of Supply Chain Management, 38(1), 18-28. https://doi.org/10.1111/j.1745-493X.2002.tb00117.x
Sarkis, J., & Dhavale, D. G. (2015). Supplier selection for sustainable operations: a triple-bottom-line approach using a Bayesian framework. International Journal of Production Economics, 166, 177-191. https://doi.org/10.1016/j.ijpe.2014.11.007
Shahryari Nia, A., Olfat, L., Esmaeili, A., Rostamzadeh, R., & Antuchevičienė, J. (2016). Using fuzzy Choquet Integral operator for supplier selection with environmental considerations. Journal of Business Economics and Management, 17(4), 503-526. https://doi.org/10.3846/16111699.2016.1194315
Wilhelm, M. M., Blome, C., Bhakoo, V., & Paulraj, A. (2016). Sustainability in multi-tier supply chains: understanding the double agency role of the first-tier supplier. Journal of Operations Management, 41, 42-60. https://doi.org/10.1016/j.jom.2015.11.001