Sustainable Supplier Selection and Order Allocation: An Integrated Delphi Method, Fuzzy TOPSIS and Multi-Objective Programming Model

Document Type : Article

Authors

1 Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran.

2 Industrial Management, Faculty of Management and Accounting, Allameh Tabataba'i University, Tehran, Iran.

Abstract

The purpose of the current study is to select suppliers and determine their order allocation in a way that the performance of the sustainability of the supply process gets optimized on the whole. In this research, after reviewing the literature and investigating the supply chain of the case study (Iran Khodro’s supply chain) through Delphi method, a set of evaluation criteria related to the performance of the suppliers in economical, social and environmental terms was identified. In the next stage, by using the identified criteria, the multi-objective mathematical integer programming was presented to solve the problems of suppliers’ selection and order allocation. The suggested mathematical programming in this research is designed to be multi-product, single-period and multiple sourcing. Fuzzy TOPSIS method is applied to calculate the qualitative parameters that are used in the suggested mathematical programming. Ultimately, the mathematical model suggested in the research will be solved by two methods, i.e. Epsilon Constraint Method and Weighted Sum Method. Moreover, the total value of the sustainable purchasing (TVSP) will be calculated for both cases. Comparing these two methods indicates that in this research the results of weighted sum method are better than those epsilon constraint method.

Keywords

Main Subjects

References

References:
1. Azadnia, A.H., Saman, M.Z.M., Wong, K.Y., Ghadimi, P., and Zakuan, N. "Sustainable supplier selection based on self-organizing map neural network and multi-criteria decision-making approaches", Procedia-Social and Behavioral Sciences, 65, pp. 879- 884 (2012).
2. Gimenez, C. and Tachizawa, E.M. "Extending sustainability to suppliers: a systematic literature review", Supply Chain Management: An International Journal, 17(5), pp. 531-543 (2012).
3. Hassini, E., Surti, C., and Searcy, C. "A literature review and a case study of sustainable supply chains with a focus on metrics", International Journal of Production Economics, 140(1), pp. 69-82 (2012).
4. Seuring, S. and Muller, M. "From a literature review to a conceptual framework for sustainable supply chain management", Journal of Cleaner Production, 16(15), pp. 1699-1710 (2008).
5. Mahmoudi, A., Sadi-Nezhad, S., and Makui, A. "An extended fuzzy VIKOR for group decision-making based on fuzzy distance to supplier selection", Scientia Iranica, Transactions E, Industrial Engineering, 23(4), pp. 1879-1892 (2016).
6. Rabieh, M., Modarres, M., and Azar, A. "Robust - fuzzy model for supplier selection under uncertainty: an application to the automobile industry", Scientia Iranica, Transactions E, Industrial Engineering, 25(4), pp. 2297-2311 (2018). DOI: 10.24200/sci.2017.4456.
7. Buyukozkan, G. and Cifci, G. "A novel fuzzy multicriteria decision framework for sustainable supplier selection with incomplete information", Computers in Industry, 62(2), pp. 164-174 (2011).
8. Rosen, M.A. and Kishawy, H.A. "Sustainable manufacturing and design: Concepts, practices and needs", Sustainability, 4(2), pp. 154-174 (2012).
9. Genovese, A., Lenny Koh, S.C., Bruno, G., and Esposito, E. "Greener supplier selection: state of the art and some empirical evidence", International Journal of Production Research, 51(10), pp. 2868-2886 (2013).
10. Amindoust, A., Ahmed, S., Saghafinia, A., and Bahreininejad, A. "Sustainable supplier selection: A ranking model based on fuzzy inference system", Applied Soft Computing, 12(6), pp. 1668-1677 (2012).
11. Handfield, R., Walton, S.V., Sroufe, R., and Melnyk, S.A. "Applying environmental criteria to supplier assessment: A study in the application of the analytical hierarchy process", European Journal of Operational Research, 141(1), pp. 70-87 (2002).
12. Lu, L.Y., Wu, C.H., and Kuo, T.C. "Environmental principles applicable to green supplier evaluation by using multi-objective decision analysis", International Journal of Production Research, 45(18), pp. 4317-4331 (2007).
13. Kannan, G. and Vinay, V.P. "Multi-criteria decision making for the selection of CAD/CAM system", International Journal on Interactive Design and Manufacturing, 2(3), pp. 151-159 (2008).
14. Kuo, R.J., Wang, Y.C., and Tien, F.C. "Integration of artificial neural network and MADA methods for green supplier selection", Journal of Cleaner Production, 18(12), pp. 1161-1170 (2010).
15. Bai, C. and Sarkis, J. "Integrating sustainability into supplier selection with grey system and rough set methodologies", International Journal of Production Economics, 124(1), pp. 252-264 (2010).
16. Punniyamoorthy, M., Mathiyalagan, P., and Parthiban, P. "A strategic model using structural equation modeling and fuzzy logic in supplier selection", Expert Systems with Applications, 38(1), pp. 458-474 (2011).
17. Govindan, K., Khodaverdi, R., and Jafarian, A. "A fuzzy multi criteria approach for measuring sustainability performance of a supplier based on triple bottom line approach", Journal of Cleaner Production, 47, pp. 345-354 (2013).
18. Azadnia, A.H., Saman, M.Z.M., and Wong, K.Y. "Sustainable supplier selection and order lot-sizing: an integrated multi-objective decision-making process", International Journal of Production Research, 53(2), pp. 383-408 (2015).
19. Bai, C. and Sarkis, J. "Determining and applying sustainable supplier key performance indicators", Supply Chain Management: An International Journal, 19(3), pp. 275-291 (2014).
20. Azadi, M., Jafarian, M., Saen, R.F., and Mirhedayatian, S.M. "A new fuzzy DEA model for evaluation of efficiency and effectiveness of suppliers in sustainable supply chain management context", Computers & Operations Research, 54, pp. 274-285 (2015).
21. Sarkis, J. and Dhavale, D.G. "Supplier selection for sustainable operations: A triple-bottom-line approach using a Bayesian framework", International Journal of Production Economics, 166, pp. 177-191 (2015).
22. Orji, I. and Wei, S. "A decision support tool for sustainable supplier selection in manufacturing firms", Journal of Industrial Engineering and Management, 7(5), pp. 1293-1315 (2014).
23. Yousefi, S., Shabanpour, H., Fisher, R., and Saen, R.F. "Evaluating and ranking sustainable suppliers by robust dynamic data envelopment analysis", Measurement, 83, pp. 72-85 (2016).
24. Luthra, S., Govindan, K., Kannan, D., Mangla, S.K., and Garg, C.P. "An integrated framework for sustainable supplier selection and evaluation in supply chains", Journal of Cleaner Production, 140, pp. 1686- 1698 (2017).
25. Fallahpour, A., Olugu, E.U., Musa, S.N., Wong, K.Y., and Noori, S. "A decision support model for sustainable supplier selection in sustainable supply chain management", Computers & Industrial Engineering, 105, pp. 391-410 (2017).
26. Ghadimi, P., Dargi, A., and Heavey, C. "Sustainable supplier performance scoring using audition checklist based fuzzy inference system: a case application in automotive spare part industry", Computers & Industrial Engineering, 105, pp. 12-27 (2017).
27. Mousakhani, S., Nazari-Shirkouhi, S., and Bozorgi-Amiri, A. "A novel interval type-2 fuzzy evaluation model based group decision analysis for green supplier selection problems: A case study of battery industry", Journal of Cleaner Production, 168, pp. 205-218 (2017).
28. Seuring, S. "A review of modeling approaches for sustainable supply chain management", Decision Support Systems, 54(4), pp. 1513-1520 (2013).
29. Keskin, G.A., Ilhan, S., and Ozkan, C. "The Fuzzy ART algorithm: A categorization method for supplier evaluation and selection", Expert Systems with Applications, 37(2), pp. 1235-1240 (2010).
30. Aliakbari, A. and Seifbarghy, M. "A supplier selection model for social responsible supply chain", Journal of Optimization in Industrial Engineering, 8, pp. 41-53 (2011).
31. Su, C.M., Horng, D.J., Tseng, M.L., Chiu, A.S., Wu, K.J., and Chen, H.P. "Improving sustainable supply chain management using a novel hierarchical grey- DEMATEL approach", Journal of Cleaner Production, 134, pp. 469-481 (2016).
32. Trapp, A.C. and Sarkis, J. "Identifying Robust portfolios of suppliers: a sustainability selection and development perspective", Journal of Cleaner Production, 112, pp. 2088-2100 (2016).
33. Mafakheri, F., Breton, M., and Ghoniem, A. "Supplier selection-order allocation: A two-stage multiple criteria dynamic programming approach", International Journal of Production Economics, 132(1), pp. 52-57 (2011).
34. Shaw, K., Shankar, R., Yadav, S.S., and Thakur, L.S. "Supplier selection using fuzzy AHP and fuzzy multiobjective linear programming for developing low carbon supply chain", Expert Systems with Applications, 39(9), pp. 8182-8192 (2012).
35. Afshar Bakeshlou, E., Arshadi Khamse, A., Goudarzian Asl, M.A., and Sadeghi, J. "Evaluating a green supplier selection problem using a hybrid MODM algorithm", Journal of Intelligent Manufacturing, 28(4), pp. 913-927 (2017).
36. Nazari-Shirkouhi, S., Shakouri, H., Javadi, B., and Keramati, A. "Supplier selection and order allocation problem using a two-phase fuzzy multi-objective linear programming", Applied Mathematical Modelling, 37(22), pp. 9308-9323 (2013).
37. Kannan, D., Khodaverdi, R., Olfat, L., Jafarian, A., and Diabat, A. "Integrated fuzzy multi criteria decision making method and multi-objective programming approach for supplier selection and order allocation in a green supply chain", Journal of Cleaner Production, 47, pp. 355-367 (2013).
38. Windle, P.E. "Delphi technique: assessing component needs", Journal of PeriAnesthesia Nursing, 19(1), pp. 46-47 (2004).
39. Keeney, S., McKenna, H., and Hasson, F., The Delphi Technique in Nursing and Health Research, John Wiley & Sons (2010).
Scientia Iranica
Volume 26, Issue 4
Transactions on Industrial Engineering (E)
July and August 2019
Pages 2524-2540

Files

Share

How to cite

Statistics