A Fuzzy MCDM Approach for Green Supplier Selection from the Economic and Environmental Aspects

Abstract

Due to the challenge of rising public awareness of environmental issues and governmental regulations, green supply chain management (SCM) has become an important issue for companies to gain environmental sustainability. Supplier selection is one of the key operational tasks necessary to construct a green SCM. To select the most suitable suppliers, many economic and environmental criteria must be considered in the decision process. Although numerous studies have used economic criteria such as cost, quality, and lead time in the supplier selection process, only some studies have taken into account the environmental issues. This study proposes a comprehensive fuzzy multicriteria decision making (MCDM) approach for green supplier selection and evaluation, using both economic and environmental criteria. In the proposed approach, a fuzzy analytic hierarchy process (AHP) is employed to determine the important weights of criteria under vague environment. In addition, a fuzzy technique for order performance by similarity to ideal solution (TOPSIS) is used to evaluate and rank the potential suppliers. Finally, a case study in Luminance Enhancement Film (LEF) industry is presented to illustrate the applicability and efficiency of the proposed method.