Abstract
The selection of sustainable suppliers (SSS) is the first step in applying a sustainable supply chain and sustainable production. Therefore, it is necessary to select the supplier that best meets the set sustainability criteria. However, the selection of suppliers cannot be done by applying symmetric information, because the company does not have complete information, so asymmetric information should be used when selecting suppliers. Since the SSS applies three main sustainability criteria, environmental, social, and economic criteria, this decision-making problem is solved by applying multi-criteria decision-making (MCDM). In order to solve the SSS for the needs of agricultural production, interval fuzzy logic was applied in this research, and six suppliers with whom agricultural pharmacies in Semberija work were taken into consideration. The application of interval fuzzy logic was performed using the methods PIPRECIA (Pivot pairwise relative criteria importance assessment) and MABAC (Multi-Attributive Border Approximation Area Comparison). Using the PIPRECIA method, the weights of criteria and sub-criteria were determined. Results of this method showed that the most significant are economic criteria, followed by the social criteria. The ecological criteria are the least important. The supplier ranking was performed using the MABAC method. The results showed that supplier A4 best meets the sustainability criteria, while supplier A6 is the worst. These results were confirmed using other MCDM methods, followed by the sensitivity analysis. According to the attained results, agricultural producers from Semberija should buy the most products from suppliers A4, in order to better apply sustainability in production. This paper showed how to decision make when there is asymmetric information about suppliers.
Highlights
Increasing market changes have caused farmers to take effective measures to improve the supply chain and become more competitive in the market
Interval-valued fuzzy (IVF) are a special form of generalized fuzzy numbers
The directors of agricultural pharmacies, i.e., decision makers (DM), determine the value of these criteria by choosing a certain linguistic value from the scale of values provided for the PIPRECIA method (Table 3)
Summary
Increasing market changes have caused farmers to take effective measures to improve the supply chain and become more competitive in the market. The concept of sustainable agricultural production is increasingly being demanded by more and more buyers. Agricultural production today thrives with strong intervention by farmers and the question arises as to how sustainable that production is [1]. Due to the growing customer demand and non-selective use of funds, the environment and human health are increasingly affected, so it is necessary to have less invasive and more environmentally friendly production in practice, and most importantly to apply sustainable agricultural production [2]. The application of sustainable agricultural production must be adjusted to the strategic aim of each agricultural producer. They should create a sustainable development strategy and form business goals and plans necessary for agricultural production based on it
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