Application of Analytic Hierarchy Process Method for Sustainable Supplier Selection: A Case Study of ABC Company
Keywords:
Food Retail Business, Sustainable Supplier Selection, Analytic Hierarchy ProcessAbstract
The objectives of this research are first to define criteria and measure to evaluate sustainable suppliers and second to evaluate the appropriate sustainable supplier for a food and beverage retailer. To select suitable evaluation criteria, we obtained from literature review and opinion of four experts who are managers of related departments. Then we implemented the Analytical Hierarchy Process as the main evaluation tool. The result show that the suitable criteria consist of three dimensions namely: (1) economic dimension consists of sub-criteria as products or services’ quality, cost, and delivery or fulfillment; (2) environmental dimension consists of sub-criteria as green management, environmental friendly design, and energy and resources consumption; (3) social dimension consists of sub-criteria as social responsibility,and health and safety. The relative importance weights in descending order are on economic(0.731), environmental (0.188), and social (0.081), respectively. Finally, the evaluation result shows that the best supplier is supplier B (0.357), D (0.256), C (0.232), and A (0.155), respectively. By considering the highest relative importance weight of main criteria, namely economic dimension, the costs and quality criteria are the main reason that supplier B is ranked as the first to be selected. Furthermore, from result of our research, the case study organization is able to further develop manual or appropriate framework for sustainable supplier evaluation under the organization’s sustainable development plan.
References
กรมส่งเสริมอุตสาหกรรม. (2562). ยุทธศาสตร์กรมส่งเสริมอุตสาหกรรม พ.ศ. 2562-2564. แผนยุทธศาสตร์กรมส่งเสริมอุตสาหกรรม พ.ศ. 2562-2564, 1-60.
ณัฐพร สว่างวงศ์สิน. (2555). การประยุกต์ใช้กระบวนการ AHP ในการประเมินผู้ขาย : กรณีศึกษา ธุรกิจค้าปลีกสินค้ากลุ่มห้องน้ำ. วิทยานิพนธ์บริหารธุรกิจมหาบัณฑิต สาขาบริหารธุรกิจ. กรุงเทพฯ: มหาวิทยาลัยธุรกิจบัณฑิต.
ณัฐพัชร์ อารีรัชกุลกานต์ และสมหญิง งามพรประเสริฐ. (2559). การพัฒนาแบบจำลองการวัดสมรรถนะสวนอุตสาหกรรมเชิงนิเวศในประเทศไทย. วารสารวิศวกรรมศาสตร์ มหาวิทยาลัยศรีนครินทรวิโรฒ, 11(2), 75-90.
วิฑูรย์ ตันศิริคงคล. (2542). AHP กระบวนการตัดสินใจที่ได้รับความนิยมมากที่สุดในโลก. กรุงเทพฯ: กราฟฟิค แอนด์ ปริ้นติ้ง เซ็นเตอร์.
ศราวุธ ไชยธงรัตน์ และ สุนาริน จันทะ. (2555). การกำหนดระดับสินค้าคงคลังสารองที่เหมาะสมสำหรับสินค้าประเภทสั่งทำ กรณีศึกษาบริษัทผลิตประตูหน้าต่าง. การประชุมวิชาการข่ายงานวิศวกรรมอุตสาหการ ประจำปี 2555, 346-352.
สมพงษ์ เหมบุตร. (2560). การศึกษาเกณฑ์การคัดเลือกผู้ผลิตชิ้นส่วนที่ยั่งยืนของผู้ผลิตฮาร์ดดิสก์ ตามแนวทาง Triple Bottom Line (TBL). วิทยานิพนธ์วิศวกรรมศาสตร์มหาบัณฑิต สาขาวิศวกรรมอุตสาหการ. กรุงเทพฯ: มหาวิทยาลัยธรรมศาสตร์.
Aminsoust, A., Ahmed, S., Saghafinia, A., Bahreininejad. (2012). Sustainable supplier selection: A ranking model based on fuzzy inference system. Applied Soft Computing, 12, 1668-1677.
Azadnia, A.H., Saman, M.Z.M. Wong, K.Y., Ghadimi, P., & Zakuan, N. (2012). Sustainable Supplier Selection Based on Self-organizing Map Neural network and Multi Criteria Decision Making Approaches. Procedia - Social and Behavioral Sciences, International Congress on Interdisciplinary Business and Social Science, 65, 879 – 884.
Bansod, S., Kubde, R. (2012). The Analytic Hierarchy Process Based Supplier Selection Approach for Collaborative Planning Forecasting and Replenishment Systems. International Journal of Engineering Research & Technology (IJERT), 1(7), 1-12.
Calik, A. (2019). A Multi-Criteria Evaluation for Sustainable Supplier Selection Based on Fuzzy Sets. Business and Economics Research Journal, 10(1). 95-113.
Chaharsooghi, S. & Ashrafi, M. (2014). Sustainable Supplier Performance Evaluation and Selection with Neofuzzy TOPSIS Method. International Scholarly Research Notices, 2014, 1-10.
Chaitonrat, S., Areerakulkan, N., Setthachotsombut, N. (2020). A Comprehensive Literature Review on the Relationship of Green Logistics and Lean Management on Firms’ Performance. Sciences and Business Management Graduate Conference 2020: SBC2020, 112-120.
Du, Y., Zhang, D., Zou, Y. (2020). Sustainable Supplier Evaluation and Selection of Fresh Agricultural Products Based on IFAHP-TODIM Model. Mathematical Problems in Engineering, Vol. 2020, 1-15.
Erdoğdu, M., Mermod, A., Yıldırım, O. (2016). Sustainable Supplier Evaluation and Selection Criteria . Social and Economic Perspectives on Sustainability, 31, 159-168.
Ghadimi, P. & Heavy, C. (2014). Sustainable Supplier Selection in Medical Device Industry: Toward Sustainable Manufacturing. Procedia CIRP, 15, 165 – 170.
Ghoushchi, J.S., Milan, M.D., & Rezaee, J.M. (2018). Evaluation and selection of sustainable suppliers in supply chain using new GP-DEA model with imprecise data. Journal of Industrial Engineering International, 14, 613–625.
Grover, R., Grover, Ra., Rao, V., & Kejriwal,. K. (2016). Supplier Selection Using Sustainable Criteria in Sustainable Supply Chain Management. World Academy of Science, Engineering and Technology International Journal of Economics and Management Engineering, 10(5),1175-1179.
Hendiani, S., Liao, H., Ren, R., Lev, B. (2020). A likelihood-based multi-criteria sustainable supplier selection approach with complex preference information. Information Sciences, 536, 135-155.
Holden, E., Linnerud, K., Banister, D. (2014). Sustainable development: Our Common Future revisited. Global Environmental Change, 26, 130–139.
Kubde, R., & Bansod, S.V. (2012). The Analytic Hierarchy Process Based Supplier Selection Approach for Collaborative Planning Forecasting and Replenishment Systems. International Journal of Engineering Research & Technology, 1(7), 1-12.
Memari, A., Dargi, A., Jokar, M., Ahmad, R., Rahim, R. (2019). Sustainable supplier selection: A multi-criteria intuitionistic fuzzy TOPSIS method. Journal of Manufacturing Systems, 50, 9-24.
Moktadir, A., Rahman, T., Sultana, R. (2017). Selection of Best Supplier by Using AHP Tool for Managing Risk Factors in Logistics: A Case of Leather Products Industry. Industrial Engineering & Management, 6(4), 1-7.
Nielsen, I.E., Banaeian, N,, Golinska, P., Mobli, H., & Omid, M. (2014). Green Supplier Selection Criteria: From a Literature Review to a Flexible Framework for Determination of Suitable Criteria. Logistics Operations, Supply Chain Management and Sustainability, 79-99.
Orji, I.J., & Wei, S. (2015). An innovative integration of fuzzy-logic and systems dynamics in sustainable supplier selection: A case on manufacturing industry. Computers & Industrial Engineering, 88, 1–12.
Ozturk, B. & Ozçelik, F. (2014). Sustainable Supplier Selection with A Fuzzy Multi-Criteria Decision Making Method Based on Triple Bottom Line. Business and Economics Research Journal, 5(3), 129-147.
Pishchulov, G., Trautrims, A. Chesney, T. Gold, S. Schwab, L. (2019). The Voting Analytic Hierarchy Process revisited: A revised method with application to sustainable supplier selection. International Journal of Production Economics, 211, 166–179.
Purvis, B., Mao, Y., Robinson, D. (2019). Three pillars of sustainability: in search of conceptual origins. Sustainability Science, 14, 681–695.
Saaty, T.L. (1980). The Analytic Hierarchy Process. McGraw-Hill, New York.
Sarkis, J., & Dhavale, D.G. (2015). Supplier selection for sustainable operations: A triple- bottom-line approach using a Bayesian framework. Int. J. Production Economics, 166, 177–191.
Taherdoost, H. (2017). Decision Making Using the Analytic Hierarchy Process (AHP): A Step by Step. International Journal of Economics and Management System, 2, 243-246.
Xu, L., Kumar, D.T., Shankar, K.M., Kannan, D., & Chen, G. (2013). Analyzing criteria and sub-criteria for the corporate social responsibility-based supplier selection process using AHP. International Journal of Advanced Manufacturing Technology, 68, 907–916.
Yu, C., Shao, Y., Wang, K., Zhang, L. (2019). A group decision-making sustainable supplier selection approach using extended TOPSIS under interval-valued Pythagorean fuzzy environment. Expert Systems With Applications, 121, 1-17.
Zafar, A., Zafar, M., Sarwar, A., Raza, H., Khan, T. (2019). A Fuzzy AHP Method for Green Supplier Selection and Evaluation. Proceedings of the Twelfth International Conference on Management Science and Engineering Management, 1355-1366.
