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Sustainable Supplier Selection Process in Edible Oil Production by a Hybrid Fuzzy Analytical Hierarchy Process and Green Data Envelopment Analysis for the SMEs Food Processing Industry

Chia-Nan Wang, Nguyen Van Thanh, Hoang Tuyet Nhi Thai, Ngoc Nguyen Tran and Thi Lan Anh Tran
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Chia-Nan Wang: Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan
Nguyen Van Thanh: Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan
Hoang Tuyet Nhi Thai: Department of Industrial Systems Engineering, CanTho University of Technology, Can Tho 900000, Vietnam
Ngoc Nguyen Tran: Department of Industrial Systems Engineering, CanTho University of Technology, Can Tho 900000, Vietnam
Thi Lan Anh Tran: Department of Industrial Systems Engineering, CanTho University of Technology, Can Tho 900000, Vietnam

Mathematics, 2018, vol. 6, issue 12, 1-16

Abstract: Today, business organizations are facing increasing pressure from a variety of sources to operate using sustainable processes. Thus, most companies need to focus on their supply chains to enhance sustainability to meet customer demands and comply with environmental legislation. To achieve these goals, companies must focus on criteria that include CO 2 (carbon footprint) and toxic emissions, energy use and efficiency, wastage generations, and worker health and safety. As in other industries, the food processing industry requires large inputs of resources, which results in several negative environmental effects; thus, decision-makers have to evaluate qualitative and quantitative factors. This work identifies the best supplier for edible oil production in the small and medium enterprise (SME) food processing industry in Vietnam. This study also processes a hybrid multicriteria decision-making (MCDM) model using a fuzzy analytical hierarchy process (FAHP) and green data envelopment analysis (GDEA) model to identify the weight of all criteria of a supplier’s selection process based on opinions from company procurement experts. Subsequently, GDEA is applied to rank all potential supplier lists. The primary objective of this work is to present a novel approach which integrates FAHP and DEA for supplier selection and also consider the green issue in edible oil production in uncertain environments. The aim of this research is also to provide a useful guideline for supplier selection based on qualitative and quantitative factors to improve the efficiency of supplier selection in the food industry and other industries. The results reveal that Decision-Making Unit 1 (DMU 1), DMU 3, DMU 7, and DMU 9 are identified as extremely efficient for five DEA models, which are the optimal suppliers for edible oil production. The contributions of this research include a proposed MCDM model using a hybrid FAHP and GDEA model for supplier selection in the SME food processing industry under a fuzzy environment conditions in Vietnam. This research also is part of an evolution of a new hybrid model that is flexible and practical for decision-makers. In addition, the research also provides a useful guideline in supplier selection in the food processing industry and a guideline for supplier selection in other industries.

Keywords: supplier selection process; multicriteria decision making (MCDM); edible oil; fuzzy analytical hierarchy process (FAHP); green data envelopment analysis (GDEA) (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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