Abstract
Sustainable supplier selection (SSS) has become an essential task for decision-makers in competitive environments. We construct a new decision-making framework for SSS. First, classical SSS usually includes fixed factors in environmental, social and economic dimensions. Differently, we adopt new social factors from credit perspective with corporate social credit system being promoted vigorously by the Chinese government. Next, we employ probabilistic linguistic term sets (PLTSs) to collect experts’ judgments about interactive influence between factors. Third, we combine PLTSs with Decision Making Trial and Evaluation Laboratory (DEMATEL) method to identify critical success factors (CSFs) for improving decision-making efficiency. And we also give definition to relative importance degree, standard relative importance degree, deviation of importance degree and influence degree to reflect the interactive influence between factors. To eliminate subjective influence, we combine entropy weighting approach and DEMATEL to compute weights. Fourthly, we redefine dominance degree and apply it into TODIM method for SSS. Finally, the proposed decision-making framework’s effectiveness is verified by using the case study of a new energy vehicle (NEV) company. Based on this, sensitivity analysis and comparison of methods are conducted. The results verify that the decision-making framework is valid and effective for SSS.
Highlights
Supplier selection is a vital step in enterprise supply chain management (SCM) (Daultani et al, 2019)
Calculation process of Decision Making Trial and Evaluation Laboratory (DEMATEL) method based on probabilistic linguistic term sets (PLTSs). This part completes a numerical example for identifying critical success factors (CSFs) and determining their weights in the decision-making framework, by applying DEMATEL method under PLTSs to the case study in new energy vehicle (NEV) Company
After completing calculations using the PLTSs k9′, k1′2 and k1′4 are identified as the CSFs for and DEMATEL method, the CSFs k1′, k′4,k7′, selecting the most suitable sustainable NEV
Summary
Supplier selection is a vital step in enterprise supply chain management (SCM) (Daultani et al, 2019). In response to the growing importance of environmental and social issues, Bai and Sarkis (2010) first proposed a sustainable concept for supplier selection based on triple bottom line (TBL) theory (Elkington, 1998). A Chinese corporate social responsibility summit forum in 2019 stressed that social credit has become a crucial factor for enterprises’ sustainable development (Ministry of Commerce of the People’s Republic of China, 2019; Song et al, 2017) This makes it necessary to consider credit when constructing comprehensive factor system to SSS. Hoseini et al (2020) presented a model based on Fuzzy set considering the probabilities to select the supplier with the sustainability criteria.
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