Green supplier selection: a fuzzy AHP and fuzzy ARAS approach

Abstract

In today's fiercely competitive environment the selection of appropriate suppliers is a significantly important decision for effective and efficient supply chain management. Given the growing environmental concerns during the past decades, a consensus is emerging that environmental pollution issues accompanying industrial development should be addressed together with supply chain management, thus contributing to green supply chain management (GSCM). The aim of this paper is to screen most important criteria of GSCM based on experts' opinions. Since, supplier selection decisions are characterised by a high degree of uncertainty then fuzzy analytic hierarchy process (FAHP) has been used to determine weights of identified criteria. Results show that resource consumption is the most important attribute in selecting green supplier. For ranking green suppliers in this paper, fuzzy additive ratio assessment (FARAS) is applied. We found that the case company can categorise its suppliers more effectively and at the same time select a more green supply chain partner. Moreover, the case company can provide unsatisfactory suppliers with valuable feedback that will help them improve and become its partners in the future.