Green supplier selection under supply risks using novel integrated fuzzy multi-criteria decision making techniques

Abstract

Green supplier selection is one of the core business processes in the practice of sustainable supply chains, which enables firms to improve their performance to reduce harmful environmental impacts in all inbound activities. In this challenging and more dynamic business environment, materials supply can suffer from disruptions. This study aims to select suppliers based on environmental aspects by considering supply risks under an uncertain environment. Combined multi-criteria decision-making techniques are developed to address such complexity. Integrated fuzzy Analytical Hierarchy Process-Combined Compromise Solution (Fuzzy AHP-CoCoSo) and Fuzzy Stepwise Weight Assessment Ratio Analysis-Failure Mode and Effects Analysis (Fuzzy SWARA-FMEA) are applied to evaluate suppliers based on green criteria and supply risks. Data Envelopment Analysis (DEA) is used to aggregate the overall score for the final selection. A case study of green supplier selection in a manufacturing company is presented. Extensive analysis is performed to investigate the dependencies of supply risks based on the supplier selection criteria.