Research on Green Supplier Selection Method Based on Improved AHP-FMEA

Haopeng Chen and Huihui Wang ()
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Haopeng Chen: SILC Business School, Shanghai University, Shanghai 201899, China
Huihui Wang: SILC Business School, Shanghai University, Shanghai 201899, China

Sustainability, 2025, vol. 17, issue 7, 1-29

Abstract: The increasing demand for sustainable business practices has highlighted the need for a robust and risk-aware green supplier selection framework. Traditional supplier evaluation methods primarily focus on cost, quality, and delivery performance but often fail to incorporate sustainability and risk factors effectively. This study proposes an improved AHP-FMEA method that integrates the Analytic Hierarchy Process (AHP), entropy weight method, and Failure Mode and Effects Analysis (FMEA) to enhance decision-making in green supplier selection. The AHP method determines subjective criteria weights, while the entropy method adjusts these weights objectively to reduce bias. The FMEA approach incorporates risk assessment by identifying and quantifying potential supplier failures, ensuring a more comprehensive evaluation. A case study is conducted to validate the proposed model, comparing it with classical AHP and AHP-Entropy methods. The results show that incorporating risk factors significantly influences supplier ranking, demonstrating the model’s ability to provide a more scientific, objective, and risk-conscious evaluation. The proposed approach enhances the accuracy and reliability of green supplier selection, making it a valuable tool for sustainable supply chain management.

Keywords: green supplier selection; improved AHP-entropy weight method; failure mode and effects analysis; risk assessment (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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