Quantitative analysis of Supplier Selection in Sustainable Supply Chain (Economic, Environmental, Social) with Multi-Criteria Decision Making Approach F-CoCoSo and F-SWARA
Subject Areas : soil pollution
1 - Assistant Professor, Department of Industrial Engineering, Payame Noor University, Tehran, Iran.
Keywords: Multi-criteria decision making, Sustainable Supply Chain, SWARA Method, CoCoSo Method,
Abstract :
Background and Objective: Sustainable supply chain management is a new approach in the discussion of supply chain management, which is considered based on the concepts of sustainability triangle (Economic, Environmental, Social). In the meantime, choosing a sustainable supplier is a strategic key to success in managing the sustainable supply chain of organizations. Choosing the best supplier according to different and sometimes conflicting criteria complicates the problem that using multi-criteria decision making methods is one of the best ways to solve these problems. On the other hand, the choice of supplier is strongly dependent on the opinion of decision makers, and due to the incompleteness of available information, we face a kind of uncertainty. Material and Methodology: In this paper, the issue of choosing a sustainable supplier in Cement Company is examined. To do this, the combined SWARA and CoCoSo fuzzy approach was used to weight the criteria and rank the suppliers. In the first stage, after collecting the criteria for selecting a sustainable supplier based on the research literature, the criteria were weighted using experts and the F-SWARA method. Findings: The weighting results showed that the economic dimension (0.555) had the highest importance and the environmental (0.296) and social dimensions (0.146) were in the second and third places. Among the criteria, product price (0.284), environmental standards (0.154) and product quality (0.140) gained the highest weight, respectively. Supplier ratings were then calculated using the new F-CoCoSo method, and supplier ratings were obtained for final decision. Discussion and Conclusion: According to the criteria of a sustainable supply chain in this study, managers and owners of various industries and businesses according to the findings of this study can choose the right supplier who lives from all three economic dimensions. Environmentally and socially appropriate, take steps and enjoy its benefits.
References:
Gold, S., Seuring, S., Beske, P. 2010, The constructs of sustainable supply chain management–a content analysis based on published case studies. Progress in Industrial Ecology, An International Journal, 7(2), 114-137.
Gören, H. G. 2018, A decision framework for sustainable supplier selection and order allocation with lost sales. Journal of Cleaner Production, 183, 1156-1169.
Searcy, C., Karapetrovic, S., McCartney, D. 2009, Designing corporate sustainable development indicators: Reflections on a process. Environmental Quality Management, 19(1), 31-42.
Mohammed, A., Harris, I., Govindan, K. 2019, A hybrid MCDM-FMOO approach for sustainable supplier selection and order allocation. International Journal of Production Economics, 217, 171-184.
Cheraghalipour, A., Farsad, S. 2018, A bi-objective sustainable supplier selection and order allocation considering quantity discounts under disruption risks: A case study in plastic industry. Computers & Industrial Engineering, 118, 237-250.
Li, J., Fang, H., Song, W. 2019, Sustainable supplier selection based on SSCM practices: A rough cloud TOPSIS approach. Journal of cleaner production, 222, 606-621.
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.
Ghadimi, P., Toosi, F. G., Heavey, C. 2018, A multi-agent systems approach for sustainable supplier selection and order allocation in a partnership supply chain. European Journal of Operational Research, 269(1), 286-301.
Yu, C., Shao, Y., Wang, K., Zhang, L. 2019, A group decision making sustainable supplier selection approach using extended TOPSIS under interval-valued Pythagorean fuzzy environment. Expert Systems with Applications, 121, 1-17.
Bouchery, Y., Ghaffari, A., Jemai, Z., Dallery, Y. 2012, Including sustainability criteria into inventory models. European Journal of Operational Research, 222(2), 229-240.
Abdi, A., Hajiaghaei-Keshteli, M. 2019, Multi-Objective Closed-loop Supply Chain Considering Vehicles and Solving by New Approaches in Metaheuristics. Journal of Modeling in Engineering, 17(59), 67-85. (In Persian)
Rezaeenour, J., yazdian, F., Aghelan, M. 2019, Designing of a four-level closed loop Supply Chain Network with an Integration Approach for Economic, Environmental, and Social Responsibility about Employees. Journal of Modeling in Engineering, 17(57), 69-92. (In Persian)
Araz, C., Ozkarahan, I. 2007, Supplier evaluation and management system for strategic sourcing based on a new multicriteria sorting procedure. International journal of production economics, 106(2), 585-606.
Das, R., Shaw, K. 2017, Uncertain supply chain network design considering carbon footprint and social factors using two-stage approach. Clean Technologies and Environmental Policy, 19(10), 2491-2519.
Araz, C., Ozkarahan, I. 2007, Supplier evaluation and management system for strategic sourcing based on a new multicriteria sorting procedure. International journal of production economics, 106(2), 585-606.
Kharidar, F., Poya, A. 2016, The Taxonomy of supplier selection strategies and their business performance (The case study of ceramic and tile companies). Iranian Journal of Trade Studies, 20(80), 119-147. (In Persian)
Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., Nix, N. W., Smith, C. D., Zacharia, Z. G. 2001, Defining supply chain management. Journal of Business logistics, 22(2), 1-25.
M. Monczka, R.B. Handfield, L.C. Giunipero and J.L. Patterson, “Purchasing and supply chain management”. 7th Edition, Cengage Learning, 2020.
Agheleh, H., Hamidi, N. 2016, Identification and Ranking of Barriers and Obstacles of SMEs Green Supply Chain deployment (Case Study Qazvin State). Iranian Journal of Trade Studies, 20(80), 171-195. (In Persian)
Wolf, J. 2011, Sustainable supply chain management integration: a qualitative analysis of the German manufacturing industry. Journal of Business Ethics, 102(2), 221-235.
Haake, H., Seuring, S. 2009, Sustainable procurement of minor items–exploring limits to sustainability. Sustainable development, 17(5), 284-294.
Asgharizadeh, E., Ahmadi, S., Behroz, R., Hosseini Ghoghani, A. 2015, Rankings the Suppliers Using SMADM : Martel and Zaras method (Alborz Production Group). Iranian Journal of Trade Studies, 19(74), 115-141. (In Persian)
Li, H., Wang, F., Zhang, C., Wang, L., An, X., Dong, G. 2021, Sustainable supplier selection for water environment treatment public-private partnership projects. Journal of Cleaner Production, 324, 129218.
Kusi-Sarpong, S., Gupta, H., Khan, S. A., Chiappetta Jabbour, C. J., Rehman, S. T., Kusi-Sarpong, H. 2021, Sustainable supplier selection based on industry 4.0 initiatives within the context of circular economy implementation in supply chain operations. Production Planning & Control, 1-21.
Tavakoli Dehaghani, M., Shahverdiyani, S., Mosapur, H. 2018, Sustainable Supply Chain and Environmental and Financial Performance. Iranian Journal of Trade Studies, 22(85), 171-194. (In Persian)
Shoabin, S., Sajadifar, S., Aghaee, A., Aghaee, M., Fathi, M. 2020, Providing Sustainable Inventory Management Model with Stochastic Free Distribution Demand in Single-Level Supply Chain. Iranian Journal of Trade Studies, 24(95), 225-256. (In Persian)
Komasi, H., Mirzapour Al-e-hashem, S. 2021, Sustainable supply chain network design using lean principles. Iranian Journal Of Supply Chain Management, 22(69), 101-116. (In Persian)
Orji, I. J., Ojadi, F. 2021, Investigating the COVID-19 pandemic’s impact on sustainable supplier selection in the Nigerian manufacturing sector. Computers & Industrial Engineering, 160, 107588.
Ecer, F. 2020, Multi-criteria decision making for green supplier selection using interval type-2 fuzzy AHP: a case study of a home appliance manufacturer. Operational Research, 1-35.
Liu, Y., Eckert, C., Yannou-Le Bris, G., Petit, G. 2019, A fuzzy decision tool to evaluate the sustainable performance of suppliers in an agrifood value chain. Computers & Industrial Engineering, 127, 196-212.
Matić, B., Jovanović, S., Das, D. K., Zavadskas, E. K., Stević, Ž., Sremac, S., Marinković, M. 2019, A new hybrid MCDM model: Sustainable supplier selection in a construction company. Symmetry, 11(3), 353.
Jain, N., Singh, A. R. 2020, Sustainable supplier selection criteria classification for Indian iron and steel industry: a fuzzy modified Kano model approach. International Journal of Sustainable Engineering, 13(1), 17-32.
Sen, D. K., Datta, S., Mahapatra, S. S. 2018, Sustainable supplier selection in intuitionistic fuzzy environment: a decision-making perspective. Benchmarking: An International Journal, 25(2), 545-574.
Zhou, X., Xu, Z. (2018). An integrated sustainable supplier selection approach based on hybrid information aggregation. Sustainability, 10(7), 2543.
Arabsheybani, A., Paydar, M. M., Safaei, A. S. 2018, An integrated fuzzy MOORA method and FMEA technique for sustainable supplier selection considering quantity discounts and supplier's risk. Journal of cleaner production, 190, 577-591.
Zhu, Q., Sarkis, J., Lai, K. H. 2012, Examining the effects of green supply chain management practices and their mediations on performance improvements. International journal of production research, 50(5), 1377-1394.
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.
Sangbor, M.A., Javidi, F., Golmohammadi, K., Abbasi, R. 2020, A framework for evaluating and selecting a strategic supplier (case study: Yazd Alloy Steel Corporation). Roshd-e-Fanavari, 16(63), 59-66. (In Persian)
Kabgani, M., Shahbandarzadeh, H. 2019, Quantitative Analysis Criteria for Selecting Suppliers in The Resilience Supply Chain Using Multi Criteria Decision Making Techniques. Iranian Journal of Trade Studies, 23(90), 115-140. (In Persian)
Beheshtinia, M., Nemati-Abozar, V. 2017, A Combination of Fuzzy AHP and TOPSIS Method for the Supplier Selection Problem (Case Study: Advertising Company). Journal of Modeling in Engineering, 15(48), 217-229. (In Persian)
Mennatian, M.A., Chaghouyee, Y., Adibi, M.H. 2016, Development of a strategic model for supplier selection using structural equation modeling and fuzzy logic approaches, Strategic Management Research, 22(60), 115-139. (In Persian)
Mozaffari, M.M. 2015, Supplier selection with the approach of combining Fuzzy Delphi Analytic Hierarchy Process (FDAHP) and Grey VIKOR methods, Modiriat-e-Farda, 14(43), 55-69. (In Persian)
Ramezanian, M.R., Shaverdi, M., Pourjahani, R. 2012, Presenting a supplier selection model using the fuzzy hierarchical analysis process (case study: Pars Neopan Company), Supply Chain Management, 14(35), 1-12. (In Persian)
Lotfizadeh, A. 1965, Fuzzy sets. Information and control, 8(3), 338-353.
Gupta, P., Mehlawat, M. K. 2013, A new possibilistic programming approach for solving fuzzy multiobjective assignment problem. IEEE Transactions on Fuzzy Systems, 22(1), 16-34.
Keršuliene, V., Zavadskas, E. K., Turskis, Z. 2010, Selection of rational dispute resolution method by applying new step‐wise weight assessment ratio analysis (SWARA). Journal of business economics and management, 11(2), 243-258.
Mavi, R. K., Goh, M., Zarbakhshnia, N. 2017, Sustainable third-party reverse logistic provider selection with fuzzy SWARA and fuzzy MOORA in plastic industry. The International Journal of Advanced Manufacturing Technology, 91(5), 2401-2418.
Zarbakhshnia, N., Soleimani, H., Ghaderi, H. 2018, Sustainable third-party reverse logistics provider evaluation and selection using fuzzy SWARA and developed fuzzy COPRAS in the presence of risk criteria. Applied Soft Computing, 65, 307-319.
Yazdani, M., Zarate, P., Zavadskas, E. K., & Turskis, Z. (2018). A Combined Compromise Solution (CoCoSo) method for multi-criteria decision-making problems. Management Decision, 57(9), 2501-2519.
Guo, S., Zhao, H. 2017, Fuzzy best-worst multi-criteria decision-making method and its applications. Knowledge-Based Systems, 121, 23-31.
Kusi-Sarpong, S., Gupta, H., Sarkis, J. 2019, A supply chain sustainability innovation framework and evaluation methodology. International Journal of Production Research, 57(7), 1990-2008.
Ecer, F., Pamucar, D. 2020, Sustainable supplier selection: A novel integrated fuzzy best worst method (F-BWM) and fuzzy CoCoSo with Bonferroni (CoCoSo’B) multi-criteria model. Journal of Cleaner Production, 266, 121981.
Gold, S., Seuring, S., Beske, P. 2010, The constructs of sustainable supply chain management–a content analysis based on published case studies. Progress in Industrial Ecology, An International Journal, 7(2), 114-137.
Gören, H. G. 2018, A decision framework for sustainable supplier selection and order allocation with lost sales. Journal of Cleaner Production, 183, 1156-1169.
Searcy, C., Karapetrovic, S., McCartney, D. 2009, Designing corporate sustainable development indicators: Reflections on a process. Environmental Quality Management, 19(1), 31-42.
Mohammed, A., Harris, I., Govindan, K. 2019, A hybrid MCDM-FMOO approach for sustainable supplier selection and order allocation. International Journal of Production Economics, 217, 171-184.
Cheraghalipour, A., Farsad, S. 2018, A bi-objective sustainable supplier selection and order allocation considering quantity discounts under disruption risks: A case study in plastic industry. Computers & Industrial Engineering, 118, 237-250.
Li, J., Fang, H., Song, W. 2019, Sustainable supplier selection based on SSCM practices: A rough cloud TOPSIS approach. Journal of cleaner production, 222, 606-621.
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.
Ghadimi, P., Toosi, F. G., Heavey, C. 2018, A multi-agent systems approach for sustainable supplier selection and order allocation in a partnership supply chain. European Journal of Operational Research, 269(1), 286-301.
Yu, C., Shao, Y., Wang, K., Zhang, L. 2019, A group decision making sustainable supplier selection approach using extended TOPSIS under interval-valued Pythagorean fuzzy environment. Expert Systems with Applications, 121, 1-17.
Bouchery, Y., Ghaffari, A., Jemai, Z., Dallery, Y. 2012, Including sustainability criteria into inventory models. European Journal of Operational Research, 222(2), 229-240.
Abdi, A., Hajiaghaei-Keshteli, M. 2019, Multi-Objective Closed-loop Supply Chain Considering Vehicles and Solving by New Approaches in Metaheuristics. Journal of Modeling in Engineering, 17(59), 67-85. (In Persian)
Rezaeenour, J., yazdian, F., Aghelan, M. 2019, Designing of a four-level closed loop Supply Chain Network with an Integration Approach for Economic, Environmental, and Social Responsibility about Employees. Journal of Modeling in Engineering, 17(57), 69-92. (In Persian)
Araz, C., Ozkarahan, I. 2007, Supplier evaluation and management system for strategic sourcing based on a new multicriteria sorting procedure. International journal of production economics, 106(2), 585-606.
Das, R., Shaw, K. 2017, Uncertain supply chain network design considering carbon footprint and social factors using two-stage approach. Clean Technologies and Environmental Policy, 19(10), 2491-2519.
Araz, C., Ozkarahan, I. 2007, Supplier evaluation and management system for strategic sourcing based on a new multicriteria sorting procedure. International journal of production economics, 106(2), 585-606.
Kharidar, F., Poya, A. 2016, The Taxonomy of supplier selection strategies and their business performance (The case study of ceramic and tile companies). Iranian Journal of Trade Studies, 20(80), 119-147. (In Persian)
Mentzer, J. T., DeWitt, W., Keebler, J. S., Min, S., Nix, N. W., Smith, C. D., Zacharia, Z. G. 2001, Defining supply chain management. Journal of Business logistics, 22(2), 1-25.
M. Monczka, R.B. Handfield, L.C. Giunipero and J.L. Patterson, “Purchasing and supply chain management”. 7th Edition, Cengage Learning, 2020.
Agheleh, H., Hamidi, N. 2016, Identification and Ranking of Barriers and Obstacles of SMEs Green Supply Chain deployment (Case Study Qazvin State). Iranian Journal of Trade Studies, 20(80), 171-195. (In Persian)
Wolf, J. 2011, Sustainable supply chain management integration: a qualitative analysis of the German manufacturing industry. Journal of Business Ethics, 102(2), 221-235.
Haake, H., Seuring, S. 2009, Sustainable procurement of minor items–exploring limits to sustainability. Sustainable development, 17(5), 284-294.
Asgharizadeh, E., Ahmadi, S., Behroz, R., Hosseini Ghoghani, A. 2015, Rankings the Suppliers Using SMADM : Martel and Zaras method (Alborz Production Group). Iranian Journal of Trade Studies, 19(74), 115-141. (In Persian)
Li, H., Wang, F., Zhang, C., Wang, L., An, X., Dong, G. 2021, Sustainable supplier selection for water environment treatment public-private partnership projects. Journal of Cleaner Production, 324, 129218.
Kusi-Sarpong, S., Gupta, H., Khan, S. A., Chiappetta Jabbour, C. J., Rehman, S. T., Kusi-Sarpong, H. 2021, Sustainable supplier selection based on industry 4.0 initiatives within the context of circular economy implementation in supply chain operations. Production Planning & Control, 1-21.
Tavakoli Dehaghani, M., Shahverdiyani, S., Mosapur, H. 2018, Sustainable Supply Chain and Environmental and Financial Performance. Iranian Journal of Trade Studies, 22(85), 171-194. (In Persian)
Shoabin, S., Sajadifar, S., Aghaee, A., Aghaee, M., Fathi, M. 2020, Providing Sustainable Inventory Management Model with Stochastic Free Distribution Demand in Single-Level Supply Chain. Iranian Journal of Trade Studies, 24(95), 225-256. (In Persian)
Komasi, H., Mirzapour Al-e-hashem, S. 2021, Sustainable supply chain network design using lean principles. Iranian Journal Of Supply Chain Management, 22(69), 101-116. (In Persian)
Orji, I. J., Ojadi, F. 2021, Investigating the COVID-19 pandemic’s impact on sustainable supplier selection in the Nigerian manufacturing sector. Computers & Industrial Engineering, 160, 107588.
Ecer, F. 2020, Multi-criteria decision making for green supplier selection using interval type-2 fuzzy AHP: a case study of a home appliance manufacturer. Operational Research, 1-35.
Liu, Y., Eckert, C., Yannou-Le Bris, G., Petit, G. 2019, A fuzzy decision tool to evaluate the sustainable performance of suppliers in an agrifood value chain. Computers & Industrial Engineering, 127, 196-212.
Matić, B., Jovanović, S., Das, D. K., Zavadskas, E. K., Stević, Ž., Sremac, S., Marinković, M. 2019, A new hybrid MCDM model: Sustainable supplier selection in a construction company. Symmetry, 11(3), 353.
Jain, N., Singh, A. R. 2020, Sustainable supplier selection criteria classification for Indian iron and steel industry: a fuzzy modified Kano model approach. International Journal of Sustainable Engineering, 13(1), 17-32.
Sen, D. K., Datta, S., Mahapatra, S. S. 2018, Sustainable supplier selection in intuitionistic fuzzy environment: a decision-making perspective. Benchmarking: An International Journal, 25(2), 545-574.
Zhou, X., Xu, Z. (2018). An integrated sustainable supplier selection approach based on hybrid information aggregation. Sustainability, 10(7), 2543.
Arabsheybani, A., Paydar, M. M., Safaei, A. S. 2018, An integrated fuzzy MOORA method and FMEA technique for sustainable supplier selection considering quantity discounts and supplier's risk. Journal of cleaner production, 190, 577-591.
Zhu, Q., Sarkis, J., Lai, K. H. 2012, Examining the effects of green supply chain management practices and their mediations on performance improvements. International journal of production research, 50(5), 1377-1394.
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.
Sangbor, M.A., Javidi, F., Golmohammadi, K., Abbasi, R. 2020, A framework for evaluating and selecting a strategic supplier (case study: Yazd Alloy Steel Corporation). Roshd-e-Fanavari, 16(63), 59-66. (In Persian)
Kabgani, M., Shahbandarzadeh, H. 2019, Quantitative Analysis Criteria for Selecting Suppliers in The Resilience Supply Chain Using Multi Criteria Decision Making Techniques. Iranian Journal of Trade Studies, 23(90), 115-140. (In Persian)
Beheshtinia, M., Nemati-Abozar, V. 2017, A Combination of Fuzzy AHP and TOPSIS Method for the Supplier Selection Problem (Case Study: Advertising Company). Journal of Modeling in Engineering, 15(48), 217-229. (In Persian)
Mennatian, M.A., Chaghouyee, Y., Adibi, M.H. 2016, Development of a strategic model for supplier selection using structural equation modeling and fuzzy logic approaches, Strategic Management Research, 22(60), 115-139. (In Persian)
Mozaffari, M.M. 2015, Supplier selection with the approach of combining Fuzzy Delphi Analytic Hierarchy Process (FDAHP) and Grey VIKOR methods, Modiriat-e-Farda, 14(43), 55-69. (In Persian)
Ramezanian, M.R., Shaverdi, M., Pourjahani, R. 2012, Presenting a supplier selection model using the fuzzy hierarchical analysis process (case study: Pars Neopan Company), Supply Chain Management, 14(35), 1-12. (In Persian)
Lotfizadeh, A. 1965, Fuzzy sets. Information and control, 8(3), 338-353.
Gupta, P., Mehlawat, M. K. 2013, A new possibilistic programming approach for solving fuzzy multiobjective assignment problem. IEEE Transactions on Fuzzy Systems, 22(1), 16-34.
Keršuliene, V., Zavadskas, E. K., Turskis, Z. 2010, Selection of rational dispute resolution method by applying new step‐wise weight assessment ratio analysis (SWARA). Journal of business economics and management, 11(2), 243-258.
Mavi, R. K., Goh, M., Zarbakhshnia, N. 2017, Sustainable third-party reverse logistic provider selection with fuzzy SWARA and fuzzy MOORA in plastic industry. The International Journal of Advanced Manufacturing Technology, 91(5), 2401-2418.
Zarbakhshnia, N., Soleimani, H., Ghaderi, H. 2018, Sustainable third-party reverse logistics provider evaluation and selection using fuzzy SWARA and developed fuzzy COPRAS in the presence of risk criteria. Applied Soft Computing, 65, 307-319.
Yazdani, M., Zarate, P., Zavadskas, E. K., & Turskis, Z. (2018). A Combined Compromise Solution (CoCoSo) method for multi-criteria decision-making problems. Management Decision, 57(9), 2501-2519.
Guo, S., Zhao, H. 2017, Fuzzy best-worst multi-criteria decision-making method and its applications. Knowledge-Based Systems, 121, 23-31.
Kusi-Sarpong, S., Gupta, H., Sarkis, J. 2019, A supply chain sustainability innovation framework and evaluation methodology. International Journal of Production Research, 57(7), 1990-2008.
Ecer, F., Pamucar, D. 2020, Sustainable supplier selection: A novel integrated fuzzy best worst method (F-BWM) and fuzzy CoCoSo with Bonferroni (CoCoSo’B) multi-criteria model. Journal of Cleaner Production, 266, 121981.
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