Evaluation and selection of sustainable suppliers in the supply chain using the combined Vikor - FuzzyQFD method in pharmaceutical companies (Case study: Barakat Pharmaceutical Company)
Subject Areas :
Industrial Management
Mohammad Amin Khoei
1
,
Amin Jamili
2
1 - School of Industrial Eng., College of Engineering, University of Tehran, Iran
2 - Faculty member of Tehran University
Received: 2021-04-11
Accepted : 2021-10-16
Published : 2021-10-23
Keywords:
Stable Supplier,
VIKOR,
Pharmaceutical Company,
Fuzzy QFD,
Abstract :
In recent decades, the way of raw material supply and supplier selection in the health supply chain has been an important challenge. The supply chain of the pharmaceutical industry is critical and there is no specific mechanism for selecting pharmaceutical suppliers in the country. Due to increasing environmental and social awareness, choosing a sustainable supplier is one of the priorities of pharmaceutical companies. Therefore, the purpose of this study is to evaluate and select sustainable suppliers in the supply chain of the pharmaceutical company. This research is a descriptive study and is applied in terms of purpose. Research data were collected through a review of literature, interviews with experts and a questionnaire. Supplier evaluation indicators were weighted and prioritized with fuzzy QFD approach. The indicators of strength and financial and technical stability, principles of supply chain agility and managerial capabilities with weights of 0.155, 0.133 and 0.115, respectively, are the most important indicators of sustainable suppliers. Then, the indicators of return policy, history, and applying the principles of green supply chain with weights of 0.059, 0.057 and 0.033 are the least important indicators for assessing the sustainability of suppliers in pharmaceutical companies in accordance with the findings of this study. Also, with VIKOR approach, four suppliers of Barakat Pharmaceutical Company were evaluated and prioritized in accordance with sustainable criteria. Two suppliers with appropriate stability points and two unsustainable suppliers were identified.
References:
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Seuring, S., Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15), 1699–1710.
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.
Azadnia, A. H., Saman, M. Z. M., Wong, K. Y. (2015). Sustainable supplier selection and order lotsizing: An integrated multi-objective decision-making process. International Journal of Production Research, 53(2), 383–408.
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Zimmer, K., Fröhling, M., Schultmann, F. (2016). Sustainable supplier management - A review of models supporting sustainable supplier selection, monitoring and development. International Journal of Production Research, 54(5): 1412–1442.
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.
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Boran, F. E., Genç, S., Kurt, M., Akay, D. (2009). A multi-criteria intuitionistic fuzzy group decision making for supplier selection with TOPSIS method. Expert Systems with Applications, 36(8), 11363–11368.
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Govindan, K., Khodaverdi, R., Jafarian, A. (2013). A fuzzy multi criteria approach for measuring sustainability performance of a supplier based on triple bottom line approach. Journal of Cleaner Production, 47, 345–354.
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Carter, C., & Rogers, D. (2008). A framework of sustainable supply chain management: moving toward new theory. International Journal of Physical Distribution & Logistics Management, 38(5):360-387.
Liu, S., Kasturiratne, D., & Mozier, J. (2012). Ahub and spoke nodek for multi-dimensional integration of green marketing and sustainable supply chain management. Industrial marketing management, 41,581-588.
Özdemir, E. D. (2011). Aconfission oftongues orthe artofaggegating indicators—Reflections on four projective methodologies on sustainability measurement. Renewable and Sustainable Energy Reviews, 15.2385–2395.
Pedersen, A. (2009). A More Sustainable Global Supply Chain. Supply Chain Management Review HITPERLINRI, 13(7), 6.
(1995). Economic management for a risk society. Academy of management review, 20,118-37.
Sikdar, S. (2003). Sustainable development and sustainability metrics. AIChE Journal, 49(8):1928-1932.
Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: moving toward new theory. International journal of physical distribution & logistics management, 38(5), 360-387.
Linton, J. D., Klassen, R., & Jayaraman, V. (2007). Sustainable supply chains: An introduction. Journal of Operations Management, 25(6), 1075-1082.
Morali, O., & Searcy, C. (2013). A review of sustainable supply chain management practices in Canada. Journal of business ethics, 117(3), 635-658.
Yazdani M, Chatterjee P, Zavadskas EK, Hashemkhani Zolfani S. (2017). Integrated QFD-MCDM framework for green supplier selection. Journal of Cleaner Production, 142:3728-3740
Madjid Tavana, Morteza Yazdani & Debora Di Caprio. (2016). An application of an integrated ANP–QFD framework for sustainable supplier selection, International Journal of Logistics Research and Applications, 20:254-275
Wang, H., Fang, Z., Wang, D., Liu, S. (2019). An Integrated Fuzzy QFD and Grey Decision-making Approach for Supply Chain Collaborative Quality Design of Large Complex Products. Computers & Industrial Engineering, 140: 1062012
Anvari A, Reihani R. (2020). Strategic Evaluation and Selection of Pharmaceutical Suppliers BOCR -Based Using Fuzzy Multi Criteria Decision Making. Journal of Healthcare Management.
Lu, LYY, Wu, CH, & Kuo, TC. (2007). Environmental principles applicable to green supplier evaluation by using multi-objective decision analysis, International Journal of Production Research, 45(18-19): 4317-4331. http://dx.doi.org/ 10.1080/00207540701472694.
Tuzkaya, G, Ozgen A, Ozgen D, Tuzkaya U. (2009). Environmental performance evaluation of suppliers: A hybrid fuzzy multi-criteria decision approach. International Journal of Environmental Science and Technology, 6(3): 477- 490. http://dx.doi.org/ 10.1007/BF03326087.
Lee HI, Kang HY, Hsu CF, Hung HC. (2009). A green supplier selection model for high-tech industry. Expert Systems with Applications, 36(4): 791-798. http://dx.doi.org/10.1016/j.eswa.2008.11.052.
Hsu, C.W, & Hu, AH. (2009). Applying hazardous substance management to supplier selection using analytic network process. Journal of Cleaner Production, 17(2): 255-264. http://dx.doi.org/10.1016/j.jclepro.2008.05.004.
Awasthi, A., Chauhan, S.S., Goyal, S.K. (2010). A fuzzy multicriteria approach for evaluating environmental performance of suppliers. International Journal of Production Economics, 126(2): 370-378. http://dx.doi.org/10.1016/ j.ijpe. 2010. 04. 029.
Kuo, RJ, Wang, YC, Tien, FC. (2010). Integration of artificial neural network and MADA methods for green supplier selection. Journal of Cleaner Production, 18(12): 1161-1170. http://dx.doi.org/1016/j.jclepro.2010.03.020.
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.
Kannan, D, Jabbour, ABLDS, Jabbour CJC. (2014). Selecting green suppliers based on GSCM practices: Using fuzzy TOPSIS applied to a Brazilian electronics company. European Journal of Operational Research, 233(2): 432- 447. http://dx.doi.org/10.1016/j.ejor.2013.07.023.
Kannan, D, Khodaverdi R, Olfat L, Jafarian A, Diabat A. (2013). 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: 355-367. http://dx.doi.org/10.1016/j.jclepro.2013.02.010.
Shen, L, Olfat, L, Govindan, K, Khodaverdi, R, Diabat, A. (2013). A fuzzy multi criteria approach for evaluating green supplier’s performance in green supply chain with linguistic preferences. Resources, Conservation and Recycling, 74: 170-179. http://dx.doi.org/ 10.1016/j.resconrec.2012.09.006.
Zhao, H, & Guo, S. (2014). Selecting green supplier of thermal power equipment by using a Hybrid MCDM Method for sustainability, Sustainability 6 (1): 217-235. http://dx.doi.org/10.3390/su6010217.
Rostamzadeh, R, Govindan K, Esmaeili A, Sabaghi M. (2015). Application of fuzzy VIKOR for evaluation of green supply chain management practices. Ecological Indicators, 49: 188-203. http://dx.doi.org/10.1016/j.ecolind.2014.09.045
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.
Fallahpour, A., Amindoust, A., Antuchevičienė, J., & Yazdani, M. (2016). Nonlinear genetic-based model for supplier selection: a comparative study. Technological and Economic Development of Economy, 1-18.
Govindan, K., & Sivakumar, R. (2016). Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches. Annals of Operations Research, 238(1-2), 243-276.
Yazdani, M., Hashemkhani Zolfani, S., & Zavadskas, E. K. (2016). New integration of MCDM methods and QFD in the selection of green suppliers. Journal of Business Economics and Management, 1-17.
Luthra, S., Govindan, K., Kannan, D., Mangla, S. K., & Garg, C. P. (2016). An integrated framework for sustainable supplier selection and evaluation in supply chains. Journal of Cleaner Production, 140(3): 1686-1698.
Biabangard, Esmaiel. (2013). Research methods in psychology and educational sciences. Doran Publishing, Tehran, Iran.
Ghodsipoor, Hassan. (2012). Analytic Hierarchy Process (AHP). Amirkabir University Press, Tehran, Iran.
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Jafarzadeh Ghoushchi, S., Dodkanloi Milan, M., Jahangoshai Rezaee, M. (2018). Evaluation and selection of sustainable suppliers in supply chain using new GP-DEA model with imprecise data. Journal of Industrial Engineering International, 14(3): 613–625.
Mota, B., Gomes, M. I., Carvalho, A., Barbosa-Povoa, A. P. (2018). Sustainable supply chains: An integrated modeling approach under uncertainty. Omega (United Kingdom), 77, 32–57.
Seuring, S., Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15), 1699–1710.
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.
Azadnia, A. H., Saman, M. Z. M., Wong, K. Y. (2015). Sustainable supplier selection and order lotsizing: An integrated multi-objective decision-making process. International Journal of Production Research, 53(2), 383–408.
Izadikhah, M., (2012). Group Decision Making Process for Supplier Selection with TOPSIS Method under Interval-Valued Intuitionistic Fuzzy Numbers. Advances in Fuzzy Systems, 2012, 2.
Mirjani, M., Wahab, M. I. M., Li, K. W., (2013). A multicriteria supplier selection framework with interval - Valued intuitionistic fuzzy assessment. 10th International Conference on Service Systems and Service Management (pp. 731–736).
Barbosa-Póvoa, A. P., da Silva, C., Carvalho, A. (2018). Opportunities and challenges in sustainable supply chain: An operations research perspective. European Journal of Operational Research, 268(2): 399–431.
Dubey, R., Gunasekaran, A., Childe, S. J., Papadopoulos, T., Wamba, S. F. (2017). World class sustainable supply chain management: Critical review and further research directions. International Journal of Logistics Management, 28(2): 332–362.
Zimmer, K., Fröhling, M., Schultmann, F. (2016). Sustainable supplier management - A review of models supporting sustainable supplier selection, monitoring and development. International Journal of Production Research, 54(5): 1412–1442.
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.
Lee, A. H. I., Kang, H.-Y., Hsu, C.-F., Hung, H.-C. (2009). A green supplier selection model for high-tech industry. Expert Systems with Applications, 36(4), 7917–7927.
Wang, J.-W., Cheng, C.-H., & Huang, K.-C. (2009). Fuzzy hierarchical TOPSIS for supplier selection. Applied Soft Computing, 9(1): 377–386.
Boran, F. E., Genç, S., Kurt, M., Akay, D. (2009). A multi-criteria intuitionistic fuzzy group decision making for supplier selection with TOPSIS method. Expert Systems with Applications, 36(8), 11363–11368.
Guo, Z., Qi, M., Zhao, X. (2010). A New Approach Based on Intuitionistic Fuzzy Set for Selection of Suppliers. Sixth IEEE International Conference on Natural Computation, 7: 3715–3718).
Büyüközkan, G., Çifçi, G., (2012). A novel hybrid MCDM approach based on fuzzy DEMATEL, fuzzy ANP and fuzzy TOPSIS to evaluate green suppliers. Expert Systems with Applications, 39(3): 3000–3011.
Kaur, P. (2014). Selection of vendor based on Intuitionistic fuzzy analytical hierarchy process. Advances in Operations Research, 2014.
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.
Xia, W., Wu, Z. (2007). Supplier selection with multiple criteria in volume discount environments. Omega, 35(5): 494–504.
Ahi, P., Searcy, C. (2015). An analysis of metrics used to measure performance in green and sustainable supply chains. Journal of Cleaner Production, 86, 360–377.
Fallahpour, A., Udoncy Olugu, E., Nurmaya Musa, S., Yew Wong, K., Noori, S. (2017). A decision support model for sustainable supplier selection in sustainable supply chain management. Computers & Industrial Engineering, 105, 391–410.
Amindoust, A., Ahmed, S., Saghafinia, A., Bahreininejad, A. (2012). Sustainable supplier selection: A ranking model based on fuzzy inference system. Applied Soft Computing, 12(6), 1668–1677.
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.
Faisal, M. N., Al-Esmael, B., Sharif, K. J., (2017). Supplier selection for a sustainable supply chain. Benchmarking: An International Journal, 24(7), 1956–1976.
Govindan, K., Khodaverdi, R., Jafarian, A. (2013). A fuzzy multi criteria approach for measuring sustainability performance of a supplier based on triple bottom line approach. Journal of Cleaner Production, 47, 345–354.
Rabbani, M., Foroozesh, N., Mousavi, S. M., Farrokhi-Asl, H. (2017). Sustainable supplier selection by a new decision model based on interval-valued fuzzy sets and possibilistic statistical reference point systems under uncertainty. International Journal of Systems Science: Operations & Logistics, 1–17.
Keshavarz Ghorabaee, M., Zavadskas, E. K., Amiri, M., Esmaeili, A. (2016). Multi-criteria evaluation of green suppliers using an extended WASPAS method with interval type-2 fuzzy sets. Journal of Cleaner Production, 137, 213–229.
Safaei Ghadikolaei, A. Mohammadnezhad Chari, F. (2016). Supply Chain Identify and Rank the Criteria for Selecting Suppliers in the LARG (Case Study: KALLEH Food Industry). Quarterly Journal of Operational Research and Its Applications, 13(4):103-120.
Carter, C., & Rogers, D. (2008). A framework of sustainable supply chain management: moving toward new theory. International Journal of Physical Distribution & Logistics Management, 38(5):360-387.
Liu, S., Kasturiratne, D., & Mozier, J. (2012). Ahub and spoke nodek for multi-dimensional integration of green marketing and sustainable supply chain management. Industrial marketing management, 41,581-588.
Özdemir, E. D. (2011). Aconfission oftongues orthe artofaggegating indicators—Reflections on four projective methodologies on sustainability measurement. Renewable and Sustainable Energy Reviews, 15.2385–2395.
Pedersen, A. (2009). A More Sustainable Global Supply Chain. Supply Chain Management Review HITPERLINRI, 13(7), 6.
(1995). Economic management for a risk society. Academy of management review, 20,118-37.
Sikdar, S. (2003). Sustainable development and sustainability metrics. AIChE Journal, 49(8):1928-1932.
Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: moving toward new theory. International journal of physical distribution & logistics management, 38(5), 360-387.
Linton, J. D., Klassen, R., & Jayaraman, V. (2007). Sustainable supply chains: An introduction. Journal of Operations Management, 25(6), 1075-1082.
Morali, O., & Searcy, C. (2013). A review of sustainable supply chain management practices in Canada. Journal of business ethics, 117(3), 635-658.
Yazdani M, Chatterjee P, Zavadskas EK, Hashemkhani Zolfani S. (2017). Integrated QFD-MCDM framework for green supplier selection. Journal of Cleaner Production, 142:3728-3740
Madjid Tavana, Morteza Yazdani & Debora Di Caprio. (2016). An application of an integrated ANP–QFD framework for sustainable supplier selection, International Journal of Logistics Research and Applications, 20:254-275
Wang, H., Fang, Z., Wang, D., Liu, S. (2019). An Integrated Fuzzy QFD and Grey Decision-making Approach for Supply Chain Collaborative Quality Design of Large Complex Products. Computers & Industrial Engineering, 140: 1062012
Anvari A, Reihani R. (2020). Strategic Evaluation and Selection of Pharmaceutical Suppliers BOCR -Based Using Fuzzy Multi Criteria Decision Making. Journal of Healthcare Management.
Lu, LYY, Wu, CH, & Kuo, TC. (2007). Environmental principles applicable to green supplier evaluation by using multi-objective decision analysis, International Journal of Production Research, 45(18-19): 4317-4331. http://dx.doi.org/ 10.1080/00207540701472694.
Tuzkaya, G, Ozgen A, Ozgen D, Tuzkaya U. (2009). Environmental performance evaluation of suppliers: A hybrid fuzzy multi-criteria decision approach. International Journal of Environmental Science and Technology, 6(3): 477- 490. http://dx.doi.org/ 10.1007/BF03326087.
Lee HI, Kang HY, Hsu CF, Hung HC. (2009). A green supplier selection model for high-tech industry. Expert Systems with Applications, 36(4): 791-798. http://dx.doi.org/10.1016/j.eswa.2008.11.052.
Hsu, C.W, & Hu, AH. (2009). Applying hazardous substance management to supplier selection using analytic network process. Journal of Cleaner Production, 17(2): 255-264. http://dx.doi.org/10.1016/j.jclepro.2008.05.004.
Awasthi, A., Chauhan, S.S., Goyal, S.K. (2010). A fuzzy multicriteria approach for evaluating environmental performance of suppliers. International Journal of Production Economics, 126(2): 370-378. http://dx.doi.org/10.1016/ j.ijpe. 2010. 04. 029.
Kuo, RJ, Wang, YC, Tien, FC. (2010). Integration of artificial neural network and MADA methods for green supplier selection. Journal of Cleaner Production, 18(12): 1161-1170. http://dx.doi.org/1016/j.jclepro.2010.03.020.
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.
Kannan, D, Jabbour, ABLDS, Jabbour CJC. (2014). Selecting green suppliers based on GSCM practices: Using fuzzy TOPSIS applied to a Brazilian electronics company. European Journal of Operational Research, 233(2): 432- 447. http://dx.doi.org/10.1016/j.ejor.2013.07.023.
Kannan, D, Khodaverdi R, Olfat L, Jafarian A, Diabat A. (2013). 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: 355-367. http://dx.doi.org/10.1016/j.jclepro.2013.02.010.
Shen, L, Olfat, L, Govindan, K, Khodaverdi, R, Diabat, A. (2013). A fuzzy multi criteria approach for evaluating green supplier’s performance in green supply chain with linguistic preferences. Resources, Conservation and Recycling, 74: 170-179. http://dx.doi.org/ 10.1016/j.resconrec.2012.09.006.
Zhao, H, & Guo, S. (2014). Selecting green supplier of thermal power equipment by using a Hybrid MCDM Method for sustainability, Sustainability 6 (1): 217-235. http://dx.doi.org/10.3390/su6010217.
Rostamzadeh, R, Govindan K, Esmaeili A, Sabaghi M. (2015). Application of fuzzy VIKOR for evaluation of green supply chain management practices. Ecological Indicators, 49: 188-203. http://dx.doi.org/10.1016/j.ecolind.2014.09.045
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.
Fallahpour, A., Amindoust, A., Antuchevičienė, J., & Yazdani, M. (2016). Nonlinear genetic-based model for supplier selection: a comparative study. Technological and Economic Development of Economy, 1-18.
Govindan, K., & Sivakumar, R. (2016). Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches. Annals of Operations Research, 238(1-2), 243-276.
Yazdani, M., Hashemkhani Zolfani, S., & Zavadskas, E. K. (2016). New integration of MCDM methods and QFD in the selection of green suppliers. Journal of Business Economics and Management, 1-17.
Luthra, S., Govindan, K., Kannan, D., Mangla, S. K., & Garg, C. P. (2016). An integrated framework for sustainable supplier selection and evaluation in supply chains. Journal of Cleaner Production, 140(3): 1686-1698.
Biabangard, Esmaiel. (2013). Research methods in psychology and educational sciences. Doran Publishing, Tehran, Iran.
Ghodsipoor, Hassan. (2012). Analytic Hierarchy Process (AHP). Amirkabir University Press, Tehran, Iran.