Sustainable supplier selection: A comparative study of VIKOR, TOPSIS, and alternative ranking methods

Nguyen Huong Giang and Duong Manh Cuong ()
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Nguyen Huong Giang: Hanoi University of Science and Technology, Faculty of Business, School of Economics and Management
Duong Manh Cuong: Hanoi University of Science and Technology, Faculty of Business, School of Economics and Management

A chapter in Proceedings of the International Conference on Emerging Challenges: Business Dynamics in Disruptive Economy (ICECH 2025), 2026, pp 551-566 from Springer

Abstract: Abstract Supplier selection has become an increasingly important issue in supply chain management, particularly in contexts where efficiency, sustainability, and competitiveness are essential for long-term success. To support decision-making in this complex environment, multi-criteria decision-making (MCDM) approaches provide a structured and objective way of evaluating suppliers across diverse performance dimensions. This study employs an integrated methodological framework that begins with data normalization and objective weight determination through entropy, followed by the application of established MCDM techniques to rank suppliers. By using quantitative data and a systematic evaluation procedure, the research ensures transparency and reduces subjectivity in the decision-making process. The results show that while there is overall consistency in identifying strong and weak supplier candidates, differences arise depending on the methodological perspective used. These variations highlight how different approaches emphasize distinct aspects of supplier performance, such as overall balance, relative distance, or outranking strength. Despite these differences, the convergence of findings strengthens confidence in the reliability of the evaluation process. Research purpose: This study aims to develop a robust decision-making framework for sustainable supplier selection in the electronics industry. By integrating entropy and interval entropy weighting with three prominent multi-criteria decision-making (MCDM) methods—TOPSIS, VIKOR, and ELECTRE—the research seeks to provide objective, transparent, and comprehensive evaluations of suppliers. Research motivation: Supplier selection has become increasingly complex under the growing demand for sustainability and resilience in global supply chains. Traditional methods relying solely on expert judgment often introduce subjectivity and bias. Therefore, there is a pressing need for data-driven, systematic approaches that capture both quantitative and qualitative performance indicators while also revealing the methodological sensitivity of MCDM techniques. Research design, approach, and method: A dataset of electronics suppliers was assessed using a two-step methodology. First, entropy and interval entropy were applied to determine objective weights for quantitative and qualitative criteria. Second, suppliers were ranked through TOPSIS, VIKOR, and ELECTRE, with Spearman correlation employed to analyze the consistency and divergence among results. This design ensures a balanced evaluation across distance-based, compromise-based, and outranking approaches. Main findings: The study reveals that the choice of method significantly affects supplier ranking outcomes. TOPSIS and ELECTRE demonstrate high consistency in identifying leading suppliers, whereas VIKOR highlights compromise alternatives that balance overall performance with risk considerations. The comparative analysis further indicates both convergence and divergence among the three methods, underscoring the importance of methodological pluralism in achieving reliable and transparent supplier selection. Practical/managerial implications: The study provides actionable insights for procurement managers by demonstrating the value of applying multiple MCDM methods in parallel. Decision-makers can leverage TOPSIS and ELECTRE for robust identification of best-in-class suppliers, while VIKOR offers compromise solutions that balance utility and risk. This multi-method framework enhances transparency, reduces reliance on subjective judgment, and supports more resilient and sustainable supplier decisions in the electronics sector.

Keywords: sustainable sourcing; supplier evaluation; comparative; MCDM method (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-94-6239-622-7_34

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