Abstract

Due to increasing global environmental awareness, supply chains that consider environmental protection tend to be favored by green-minded customers. In addition to adapting to the technology required for green supply chains and developing contingency plans, organizations must consider reducing their carbon footprint to meet corporate objectives and reducing their carbon footprint. To address this issue, this paper aims at establishing a decision-making process for buyers with sustainability in mind. A fuzzy data envelopment analysis (FDEA) model was developed to select the most suitable supplier. Production costs, lead time, and supply chain carbon footprints were used as the input criteria, and quality and demand quantity were used as the output criteria. Buyer-seller supply chains and non-cooperative and cooperative models were employed separately to calculate associative efficiency. Sensitivity analysis was conducted to understand the effects carbon footprints have on efficiency. This study found that suppliers with low carbon footprints exhibited poor efficiency, which may be attributed to the additional effort required to select raw materials. Additionally, suppliers with different supply chain operation models exhibited differing efficiencies. Therefore, suppliers must consider the balance between carbon footprint reduction and costs, and buyers must consider environmental criteria when selecting green suppliers.

Highlights

  • Scientists have reported a gradual decline in the Arctic ice fields and dramatic changes in global temperatures caused by greenhouse effects

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  • This study used the supply chain carbon footprint as the major criterion for supplier selection, and developed a mathematical programming model based on this concept

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Summary

Introduction

Scientists have reported a gradual decline in the Arctic ice fields and dramatic changes in global temperatures caused by greenhouse effects. Wiedmann and Barrett [2] defined carbon footprint as “a measure of the exclusive total amount of CO2 emissions that is directly and indirectly caused by an activity or accumulated over the life stages of a product” These activities include those performed by people, groups, governments, companies, organizations, manufacturing processes, and industrial sectors, and the products include goods and services. This definition indicates that the assessment of carbon footprints is no longer limited to one activity or production stage, but the entire supply chain is included. Lee et al [10] proposed an integrated model for high-tech industries, and recommended using six factors for selecting suppliers These six factors were quality, technical ability, pollution control, environmental management, green production, and green ability.

Model Development
UTAYAO
Solution of Fuzzy DEA
Using Fuzzy Ranking Techniques to Select Suppliers
Numerical Example
Findings
Conclusions
Full Text
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