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A Study on Green Supplier Selection in Dynamic Environment

Author

Listed:
  • Wei Song

    (School of Economics and Management, Xidian University, No. 2 Taibai South Street, Xi’an 710071, China)

  • Zhiya Chen

    (School of Traffic and Transportation Engineering, Central South University, No. 932, Lushan South Road, Changsha 410083, China)

  • Aijun Liu

    (School of Economics and Management, Xidian University, No. 2 Taibai South Street, Xi’an 710071, China
    State Key Laboratory for Manufacturing Systems Engineering, Xi’an Jiaotong University, Xi’an 710049, China)

  • Qiuyun Zhu

    (School of Economics and Management, Xidian University, No. 2 Taibai South Street, Xi’an 710071, China)

  • Wei Zhao

    (School of Economics and Management, Xidian University, No. 2 Taibai South Street, Xi’an 710071, China)

  • Sang-Bing Tsai

    (Zhongshan Institute, University of Electronic Science and Technology, Zhongshan 528400, China
    Economics and Management College, Civil Aviation University of China, Tianjin 300300, China
    Business and Law School, Foshan University, Foshan 528000, China)

  • Hui Lu

    (Tianhua College, Shanghai Normal University, Shanghai 201815, China)

Abstract

The aim of this paper is to provide a method for selecting a green supplier in a dynamic environment, while considering the psychological behavior and the time factors of the decision maker from the manufacturer’s perspective. The supply selection method that is based on the Third Generation Prospect Theory (PT3) is proposed and an optimal ordinal number is obtained. First, the green supplier selection index system is established. Then, the indicators that are given by the manufacturer are used as reference points, and the income and loss matrices are established by calculating the gains and losses of the index values in the interval number relative to the reference points. Next, considering the time factor and calculating the variable weight based on the Gray correlation coefficient method and the time weight of the penalty mechanism method, the suppliers are chosen based on the comprehensive prospect value. Finally, the validity and the feasibility of the method are proven through a case analysis.

Suggested Citation

  • Wei Song & Zhiya Chen & Aijun Liu & Qiuyun Zhu & Wei Zhao & Sang-Bing Tsai & Hui Lu, 2018. "A Study on Green Supplier Selection in Dynamic Environment," Sustainability, MDPI, vol. 10(4), pages 1-22, April.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:4:p:1226-:d:141594
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    References listed on IDEAS

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    2. Patchara Phochanikorn & Chunqiao Tan, 2019. "An Integrated Multi-Criteria Decision-Making Model Based on Prospect Theory for Green Supplier Selection under Uncertain Environment: A Case Study of the Thailand Palm Oil Products Industry," Sustainability, MDPI, vol. 11(7), pages 1-22, March.
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