Selecting green suppliers based on GSCM practices: Using fuzzy TOPSIS applied to a Brazilian electronics company

Due to an increased awareness and significant environmental pressures from various stakeholders, companies have begun to realize the significance of incorporating green practices into their daily activities. This paper proposes a framework using Fuzzy TOPSIS to select green suppliers for a Brazilian electronics company; our framework is built on the criteria of green supply chain management (GSCM) practices. An empirical analysis is made, and the data are collected from a set of 12 available suppliers. We use a fuzzy TOPSIS approach to rank the suppliers, and the results of the proposed framework are compared with the ranks obtained by both the geometric mean and the graded mean methods of fuzzy TOPSIS methodology. Then a Spearman rank correlation coefficient is used to find the statistical difference between the ranks obtained by the three methods. Finally, a sensitivity analysis has been performed to examine the influence of the preferences given by the decision makers for the chosen GSCM practices on the selection of green suppliers. Results indicate that the four dominant criteria are Commitment of senior management to GSCM; Product designs that reduce, reuse, recycle, or reclaim materials, components, or energy; Compliance with legal environmental requirements and auditing programs; and Product designs that avoid or reduce toxic or hazardous material use.

[1]  Samir K. Srivastava,et al.  Green Supply-Chain Management: A State-of-the-Art Literature Review , 2007 .

[2]  A. Gunasekaran,et al.  Sustainable supply management: An empirical study , 2012, ECIS 2012.

[3]  R. K. Singh,et al.  A fuzzy TOPSIS based approach for e-sourcing , 2011, Eng. Appl. Artif. Intell..

[4]  Ching-Lai Hwang,et al.  Fuzzy Multiple Attribute Decision Making - Methods and Applications , 1992, Lecture Notes in Economics and Mathematical Systems.

[5]  Gwo-Hshiung Tzeng,et al.  Fuzzy MCDM approach for selecting the best environment-watershed plan , 2011, Appl. Soft Comput..

[6]  Joseph Sarkis,et al.  RELATIONSHIPS BETWEEN OPERATIONAL PRACTICES AND PERFORMANCE AMONG EARLY ADOPTERS OF GREEN SUPPLY CHAIN MANAGEMENT PRACTICES IN CHINESE MANUFACTURING ENTERPRISES , 2004 .

[7]  S. Rahman,et al.  Indian textile suppliers' sustainability evaluation using the grey approach , 2012 .

[8]  Steven A. Melnyk,et al.  Applying environmental criteria to supplier assessment: A study in the application of the Analytical Hierarchy Process , 2002, Eur. J. Oper. Res..

[9]  Chian-Son Yu,et al.  A GP-AHP method for solving group decision-making fuzzy AHP problems , 2002, Comput. Oper. Res..

[10]  Angappa Gunasekaran,et al.  Special Issue on Sustainable development of manufacturing and services , 2012 .

[11]  Stefan Seuring,et al.  From a literature review to a conceptual framework for sustainable supply chain management , 2008 .

[12]  Hans-Jürgen Zimmermann,et al.  Fuzzy Set Theory - and Its Applications , 1985 .

[13]  Christina W.Y. Wong,et al.  Green logistics management and performance: Some empirical evidence from Chinese manufacturing exporters , 2012 .

[14]  Ying-Ming Wang,et al.  Fuzzy TOPSIS method based on alpha level sets with an application to bridge risk assessment , 2006, Expert Syst. Appl..

[15]  Chung-Hsing Yeh,et al.  A survey analysis of service quality for domestic airlines , 2002, Eur. J. Oper. Res..

[16]  S. Hart,et al.  A Natural-Resource-Based View of the Firm , 1995 .

[17]  P. K. Humphreysa,et al.  Integrating environmental criteria into the supplier selection process , 2015 .

[18]  Miriam Borchardt,et al.  How can the sales of green products in the Brazilian supply chain be increased , 2013 .

[19]  Gülçin Büyüközkan,et al.  A novel fuzzy multi-criteria decision framework for sustainable supplier selection with incomplete information , 2011, Comput. Ind..

[20]  Hokey Min,et al.  Green purchasing practices of US firms , 2001 .

[21]  S. Seuring,et al.  Environmental impacts as buying criteria for third party logistical services , 2010 .

[22]  Martin Müller,et al.  Supplier management in developing countries , 2013 .

[23]  Wei-Chang Yeh,et al.  Using multi-objective genetic algorithm for partner selection in green supply chain problems , 2011, Expert Syst. Appl..

[24]  Hsuan-Shih Lee,et al.  Generalizing TOPSIS for fuzzy multiple-criteria group decision-making , 2007, Comput. Math. Appl..

[25]  Ali H. Diabat,et al.  A fuzzy multi criteria approach for evaluating green supplier's performance in green supply chain with linguistic preferences , 2013 .

[26]  K. Lai,et al.  Confirmation of a measurement model for green supply chain management practices implementation , 2008 .

[27]  Hing Kai Chan,et al.  Don't forget your supplier when remanufacturing , 2013, Eur. J. Oper. Res..

[28]  Ji-Feng Ding,et al.  An Integrated Fuzzy TOPSIS Method for Ranking Alternatives and Its Application , 2011 .

[29]  Dimitris Askounis,et al.  Support managers' selection using an extension of fuzzy TOPSIS , 2011, Expert Syst. Appl..

[30]  Angappa Gunasekaran,et al.  The future of operations management: An outlook and analysis , 2011 .

[31]  Alev Taskin Gumus,et al.  Evaluation of hazardous waste transportation firms by using a two step fuzzy-AHP and TOPSIS methodology , 2009, Expert Syst. Appl..

[32]  Anjali Awasthi,et al.  Application of fuzzy TOPSIS in evaluating sustainable transportation systems , 2011, Expert Syst. Appl..

[33]  S. Farid Mousavi,et al.  TQM consultant selection in SMEs with TOPSIS under fuzzy environment , 2009, Expert Syst. Appl..

[34]  Charbel José Chiappetta Jabbour,et al.  Green supply chain management in local and multinational high-tech companies located in Brazil , 2013 .

[35]  Chen-Tung Chen,et al.  A fuzzy approach for supplier evaluation and selection in supply chain management , 2006 .

[36]  C. Kahraman,et al.  Fuzzy multi-attribute equipment selection based on information axiom , 2005 .

[37]  Renato A. Krohling,et al.  Fuzzy TOPSIS for group decision making: A case study for accidents with oil spill in the sea , 2011, Expert Syst. Appl..

[38]  Serkan Yavuz,et al.  Weapon selection using the AHP and TOPSIS methods under fuzzy environment , 2009, Expert Syst. Appl..

[39]  Ali Diabat,et al.  An exploration of green supply chain practices and performances in an automotive industry , 2013 .

[40]  R. J. Kuo,et al.  Integration of artificial neural network and MADA methods for green supplier selection , 2010 .

[41]  Ana Beatriz Lopes de Sousa Jabbour,et al.  Brazil’s new national policy on solid waste: challenges and opportunities , 2014, Clean Technologies and Environmental Policy.

[42]  Chia-Wei Hsu,et al.  Applying hazardous substance management to supplier selection using analytic network process , 2009 .

[43]  K. Govindan,et al.  A fuzzy multi criteria approach for measuring sustainability performance of a supplier based on triple bottom line approach , 2013 .

[44]  C. Searcy,et al.  A comparative literature analysis of definitions for green and sustainable supply chain management , 2013 .

[45]  Hing Kai Chan,et al.  A hierarchical fuzzy TOPSIS approach to assess improvement areas when implementing green supply chain initiatives , 2013 .

[46]  Joseph Sarkis,et al.  Models for compassionate operations , 2012 .

[47]  Drakoulis Martakos,et al.  In-depth analysis and simulation study of an innovative fuzzy approach for ranking alternatives in multiple attribute decision making problems based on TOPSIS , 2011, Appl. Soft Comput..

[48]  Chen-Tung Chen,et al.  Extensions of the TOPSIS for group decision-making under fuzzy environment , 2000, Fuzzy Sets Syst..

[49]  Shaligram Pokharel,et al.  A hybrid approach using ISM and fuzzy TOPSIS for the selection of reverse logistics provider , 2009 .

[50]  A. P. Riera,et al.  The History of Left Septal Fascicular Block : Chronological Considerations of a Reality Yet to be Universally Accepted , 2008 .

[51]  Da Ruan,et al.  Measuring flexibility of computer integrated manufacturing systems using fuzzy cash flow analysis , 2004, Inf. Sci..

[52]  Lakshman S. Thakur,et al.  Supplier selection using fuzzy AHP and fuzzy multi-objective linear programming for developing low carbon supply chain , 2012, Expert Syst. Appl..

[53]  Cristina Giménez Thomsen,et al.  Drivers of green supply management performance: Evidence from Germany , 2011 .

[54]  Richard Bellman,et al.  Decision-making in fuzzy environment , 2012 .

[55]  Ana Beatriz Lopes de Sousa Jabbour,et al.  Are supplier selection criteria going green? Case studies of companies in Brazil , 2009, Ind. Manag. Data Syst..

[56]  Adam R. Fremeth,et al.  Green Management Matters Regardless , 2009 .

[57]  M. Tseng,et al.  Evaluating firm's green supply chain management in linguistic preferences , 2013 .

[58]  Shuo-Yan Chou,et al.  An extension of fuzzy TOPSIS approach based on centroid-index ranking method , 2012 .

[59]  Joseph Sarkis A STRATEGIC DECISION FRAMEWORK FOR GREEN SUPPLY CHAIN MANAGEMENT , 2003 .

[60]  Cengiz Kahraman,et al.  Information systems outsourcing decisions using a group decision-making approach , 2009, Eng. Appl. Artif. Intell..

[61]  L. V. Wassenhove,et al.  Sustainable Operations Management , 2005 .

[62]  Hsing-Pei Kao,et al.  An integrated fuzzy TOPSIS and MCGP approach to supplier selection in supply chain management , 2011, Expert Syst. Appl..

[63]  Hokey Min,et al.  Green supply chain research: past, present, and future , 2012, Logist. Res..

[64]  Sameer Kumar,et al.  A comprehensive environment friendly approach for supplier selection , 2014 .

[65]  Lotfi A. Zadeh,et al.  A fuzzy-algorithmic approach to the definition of complex or imprecise concepts , 1976 .

[66]  Ioannis Mallidis,et al.  Operations Research for green logistics - An overview of aspects, issues, contributions and challenges , 2011, Eur. J. Oper. Res..

[67]  Joseph Sarkis,et al.  Evaluating environmentally conscious business practices , 1998, Eur. J. Oper. Res..

[68]  Stefan Seuring,et al.  A review of modeling approaches for sustainable supply chain management , 2013, Decis. Support Syst..

[69]  J. Linton,et al.  Sustainable supply chains: An introduction , 2007 .

[70]  R. Klassen,et al.  EXTENDING GREEN PRACTICES ACROSS THE SUPPLY CHAIN: THE IMPACT OF UPSTREAM AND DOWNSTREAM INTEGRATION , 2006 .

[71]  D. Kumar,et al.  Multicriterion decision making in irrigation planning , 1999 .

[72]  Qinghua Zhu,et al.  Green supply chain management in China: pressures, practices and performance , 2005 .

[73]  K. Lai,et al.  An Organizational Theoretic Review of Green Supply Chain Management Literature , 2011 .

[74]  P. Rao,et al.  Do green supply chains lead to competitiveness and economic performance , 2005 .

[75]  Chung-Hsing Yeh,et al.  A survey and optimization-based evaluation of development strategies for the air cargo industry , 2007 .

[76]  He-Yau Kang,et al.  A green supplier selection model for high-tech industry , 2009, Expert Syst. Appl..

[77]  Ching-Hsue Cheng,et al.  Fuzzy hierarchical TOPSIS for supplier selection , 2009, Appl. Soft Comput..

[78]  Jiuh-Biing Sheu,et al.  An Integrated Logistics Operational Model for Green-Supply Chain Management , 2005 .

[79]  Selim Zaim,et al.  Analyzing business competition by using fuzzy TOPSIS method: An example of Turkish domestic airline industry , 2011, Expert Syst. Appl..

[80]  Kim Hua Tan,et al.  Green as the new Lean: how to use Lean practices as a catalyst to greening your supply chain , 2013 .

[81]  Gülçin Büyüközkan,et al.  A novel hybrid MCDM approach based on fuzzy DEMATEL, fuzzy ANP and fuzzy TOPSIS to evaluate green suppliers , 2012, Expert Syst. Appl..

[82]  P. Marlow,et al.  The effect of green supply chain management on green performance and firm competitiveness in the context of container shipping in Taiwan , 2013 .

[83]  G. Bruno,et al.  Greener supplier selection: state of the art and some empirical evidence , 2013 .