Developing a Green Supplier Selection Model by Using the DANP with VIKOR

Tsai Kuo,Chia-Wei Hsu,Jie-Ying Li

doi:10.3390/su7021661

Abstract

This study proposes a novel hybrid multiple-criteria decision-making (MCDM) method to evaluate green suppliers in an electronics company. Seventeen criteria in two dimensions concerning environmental and management systems were identified under the Code of Conduct of the Electronic Industry Citizenship Coalition (EICC). Following this, the Decision-Making Trial and Evaluation Laboratory (DEMATEL) used the Analytic Network Process (ANP) method (known as DANP) to determine both the importance of evaluation criteria in selecting suppliers and the causal relationships between them. Finally, the VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) method was used to evaluate the environmental performances of suppliers and to obtain a solution under each evaluation criterion. An illustrative example of an electronics company was presented to demonstrate how to select green suppliers.

Highlights

To improve upon this shortcoming, a novel combination of the Decision-Making Trial and Evaluation Laboratory (DEMATEL) and analytic network process (ANP) techniques, known as the DEMATEL method with an ANP approach (DANP), is used to determine the influential weights of criteria based on the DEMATEL network relationship map (NRM)
Based on the characteristics of the problem and the advantages of the aforementioned two techniques, this study proposes a hybrid multi-criteria decision-making (MCDM) model based on the DANP
Considering the situation for environmental conduct based on the Electronic Industry Citizenship Coalition (EICC) Code of Conduct as it applies to green suppliers, the proposed framework of 17 criteria from real cases is an obvious advantage for electronic firms in assessing environmental performance in accordance with their buyers’ requirements

Summary

Introduction

Given growing environmental concerns during the past decade, a consensus is emerging that environmental pollution issues accompanying industrial development should be addressed along withSustainability 2015, 7 supply chain management, contributing to a green supply chain management (GSCM) system [1].GSCM is generally understood to involve screening suppliers based on environmental performance and doing business only with those that meet certain environmental regulations or standards [2].Supplier selection in GSCM is clearly a critical activity in purchasing management [2,3]; an increasing number of authors have addressed supplier selection issues when these are viewed from an environmental perspective [4,5,6,7,8,9,10,11,12,13,14,15,16,17,18].Supplier selection and evaluation is a multi-criteria decision-making (MCDM) approach [19,20] that provides an effective framework for comparing suppliers. DEMATEL techniques are used to compute the effects between criteria Another promising technique for solving MCDM problems in supplier selection is the VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) [26,27,28], which focuses on ranking and selecting from a set of alternatives. This determines compromise solutions for a problem with conflicting criteria and helps in arriving at a final decision [29]

Objectives

Findings

Discussion

Conclusion