IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v238y2016i1p243-27610.1007-s10479-015-2004-4.html
   My bibliography  Save this article

Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches

Author

Listed:
  • Kannan Govindan
  • R. Sivakumar

Abstract

The low-carbon supply chain is one of the predominant topics towards a green economy and it establishes the opportunity to reduce carbon emissions across the product value chain. This paper focuses on recycling and optimized sourcing in the paper industry as a case company. The main objective is to engage the case company with their supplier networks to diminish the greenhouse gases (GHG) emissions and cost in their production process. It proposes a model to support the selection of the best green supplier and an allocation of order among the potential suppliers. The proposed model contains a two-phase hybrid approach. The first phase presents the rating and selection of potential suppliers by considering economics (cost), operational factors (quality and delivery), and environmental criteria (recycle capability and GHG emission control) using Fuzzy Technique for Order of Preference by Similarity to Ideal Solution (Fuzzy TOPSIS) methodology. The second phase presents the order allocation process using multi-objective linear programming in order to minimize cost, material rejection, late delivery, recycle waste and $$\mathrm{CO}_{2}$$ CO 2 emissions in the production process. A case study from a paper manufacturing industry is presented to elucidate the effectiveness of the proposed model. The results demonstrate a 26.2 % reduction of carbon emission by using recycle products in the production process. The firm benefits by forming a systematic methodology for green supplier evaluation and order allocation. Finally, a conclusion and a suggested direction of future research are introduced. Copyright Springer Science+Business Media New York 2016

Suggested Citation

  • Kannan Govindan & R. Sivakumar, 2016. "Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches," Annals of Operations Research, Springer, vol. 238(1), pages 243-276, March.
    • Handle: RePEc:spr:annopr:v:238:y:2016:i:1:p:243-276:10.1007/s10479-015-2004-4
    DOI: 10.1007/s10479-015-2004-4
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1007/s10479-015-2004-4
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1007/s10479-015-2004-4?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ghodsypour, S. H. & O'Brien, C., 1998. "A decision support system for supplier selection using an integrated analytic hierarchy process and linear programming," International Journal of Production Economics, Elsevier, vol. 56(1), pages 199-212, September.
    2. Mallidis, Ioannis & Dekker, Rommert & Vlachos, Dimitrios, 2012. "The impact of greening on supply chain design and cost: a case for a developing region," Journal of Transport Geography, Elsevier, vol. 22(C), pages 118-128.
    3. Jabbour, Ana Beatriz Lopes de Sousa & Jabbour, Charbel Jose Chiappetta & Latan, Hengky & Teixeira, Adriano Alves & de Oliveira, Jorge Henrique Caldeira, 2014. "Quality management, environmental management maturity, green supply chain practices and green performance of Brazilian companies with ISO 14001 certification: Direct and indirect effects," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 67(C), pages 39-51.
    4. Demirtas, Ezgi Aktar & Üstün, Özden, 2008. "An integrated multiobjective decision making process for supplier selection and order allocation," Omega, Elsevier, vol. 36(1), pages 76-90, February.
    5. Amid, A. & Ghodsypour, S.H. & O'Brien, C., 2006. "Fuzzy multiobjective linear model for supplier selection in a supply chain," International Journal of Production Economics, Elsevier, vol. 104(2), pages 394-407, December.
    6. Teresa Wu & Dan Shunk & Jennifer Blackhurst & Rajendra Appalla, 2007. "AIDEA: a methodology for supplier evaluation and selection in a supplier-based manufacturing environment," International Journal of Manufacturing Technology and Management, Inderscience Enterprises Ltd, vol. 11(2), pages 174-192.
    7. Gheidar Kheljani, J. & Ghodsypour, S.H. & O'Brien, C., 2009. "Optimizing whole supply chain benefit versus buyer's benefit through supplier selection," International Journal of Production Economics, Elsevier, vol. 121(2), pages 482-493, October.
    8. Faez, F. & Ghodsypour, S.H. & O'Brien, C., 2009. "Vendor selection and order allocation using an integrated fuzzy case-based reasoning and mathematical programming model," International Journal of Production Economics, Elsevier, vol. 121(2), pages 395-408, October.
    9. Chou, Shuo-Yan & Chang, Yao-Hui & Shen, Chun-Ying, 2008. "A fuzzy simple additive weighting system under group decision-making for facility location selection with objective/subjective attributes," European Journal of Operational Research, Elsevier, vol. 189(1), pages 132-145, August.
    10. Handfield, Robert & Walton, Steven V. & Sroufe, Robert & Melnyk, Steven A., 2002. "Applying environmental criteria to supplier assessment: A study in the application of the Analytical Hierarchy Process," European Journal of Operational Research, Elsevier, vol. 141(1), pages 70-87, August.
    11. Ho, William & Xu, Xiaowei & Dey, Prasanta K., 2010. "Multi-criteria decision making approaches for supplier evaluation and selection: A literature review," European Journal of Operational Research, Elsevier, vol. 202(1), pages 16-24, April.
    12. Nathalie Trudeau & Cecilia Tam & Dagmar Graczyk & Peter Taylor, 2011. "Energy Transition for Industry: India and the Global Context," IEA Energy Papers 2011/2, OECD Publishing.
    13. Plambeck, Erica L., 2012. "Reducing greenhouse gas emissions through operations and supply chain management," Energy Economics, Elsevier, vol. 34(S1), pages 64-74.
    14. Kannan, Devika & Jabbour, Ana Beatriz Lopes de Sousa & Jabbour, Charbel José Chiappetta, 2014. "Selecting green suppliers based on GSCM practices: Using fuzzy TOPSIS applied to a Brazilian electronics company," European Journal of Operational Research, Elsevier, vol. 233(2), pages 432-447.
    15. Validi, Sahar & Bhattacharya, Arijit & Byrne, P.J., 2014. "A case analysis of a sustainable food supply chain distribution system—A multi-objective approach," International Journal of Production Economics, Elsevier, vol. 152(C), pages 71-87.
    16. Amid, A. & Ghodsypour, S.H. & O'Brien, C., 2011. "A weighted max-min model for fuzzy multi-objective supplier selection in a supply chain," International Journal of Production Economics, Elsevier, vol. 131(1), pages 139-145, May.
    17. Chaher Alzaman, 2014. "Green supply chain modelling: literature review," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 6(1), pages 16-39.
    18. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    19. Guangquan Zhang & Jie Lu, 2003. "An Integrated Group Decision-Making Method Dealing with Fuzzy Preferences for Alternatives and Individual Judgments for Selection Criteria," Group Decision and Negotiation, Springer, vol. 12(6), pages 501-515, November.
    20. Wang, Ge & Huang, Samuel H. & Dismukes, John P., 2004. "Product-driven supply chain selection using integrated multi-criteria decision-making methodology," International Journal of Production Economics, Elsevier, vol. 91(1), pages 1-15, September.
    21. Mafakheri, Fereshteh & Breton, Michele & Ghoniem, Ahmed, 2011. "Supplier selection-order allocation: A two-stage multiple criteria dynamic programming approach," International Journal of Production Economics, Elsevier, vol. 132(1), pages 52-57, July.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kannan Govindan & R. Sivakumar, 2016. "Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches," Annals of Operations Research, Springer, vol. 238(1), pages 243-276, March.
    2. Scott, James & Ho, William & Dey, Prasanta K. & Talluri, Srinivas, 2015. "A decision support system for supplier selection and order allocation in stochastic, multi-stakeholder and multi-criteria environments," International Journal of Production Economics, Elsevier, vol. 166(C), pages 226-237.
    3. Mohammed, Ahmed & Harris, Irina & Govindan, Kannan, 2019. "A hybrid MCDM-FMOO approach for sustainable supplier selection and order allocation," International Journal of Production Economics, Elsevier, vol. 217(C), pages 171-184.
    4. García Alcaraz Jorge Luis & Alvarado Iniesta Alejandro & Maldonado Macías Aidé Araceli, 2013. "Selección de proveedores basada en análisis dimensional," Contaduría y Administración, Accounting and Management, vol. 58(3), pages 249-278, julio-sep.
    5. Wetzstein, Anton & Hartmann, Evi & Benton jr., W.C. & Hohenstein, Nils-Ole, 2016. "A systematic assessment of supplier selection literature – State-of-the-art and future scope," International Journal of Production Economics, Elsevier, vol. 182(C), pages 304-323.
    6. Hosseininasab, Amin & Ahmadi, Abbas, 2015. "Selecting a supplier portfolio with value, development, and risk consideration," European Journal of Operational Research, Elsevier, vol. 245(1), pages 146-156.
    7. Wenwen Zhu & Zhiqiang Wang, 2018. "The Collaborative Networks and Thematic Trends of Research on Purchasing and Supply Management for Environmental Sustainability: A Bibliometric Review," Sustainability, MDPI, vol. 10(5), pages 1-28, May.
    8. Tavana, Madjid & Di Caprio, Debora, 2016. "Modeling synergies in multi-criteria supplier selection and order allocation: An application to commodity tradingAuthor-Name: Sodenkamp, Mariya A," European Journal of Operational Research, Elsevier, vol. 254(3), pages 859-874.
    9. Chien-Wen Shen & Yen-Ting Peng & Chang-Shu Tu, 2019. "Considering Product Life Cycle Cost Purchasing Strategy for Solving Vendor Selection Problems," Sustainability, MDPI, vol. 11(13), pages 1-17, July.
    10. Hashemi, Seyed Hamid & Karimi, Amir & Tavana, Madjid, 2015. "An integrated green supplier selection approach with analytic network process and improved Grey relational analysis," International Journal of Production Economics, Elsevier, vol. 159(C), pages 178-191.
    11. Ehsan Afshar Bakeshlou & Alireza Arshadi Khamseh & Mohammad Ali Goudarzian Asl & Javad Sadeghi & Mostafa Abbaszadeh, 2017. "Evaluating a green supplier selection problem using a hybrid MODM algorithm," Journal of Intelligent Manufacturing, Springer, vol. 28(4), pages 913-927, April.
    12. Cinzia Colapinto & Raja Jayaraman & Simone Marsiglio, 2017. "Multi-criteria decision analysis with goal programming in engineering, management and social sciences: a state-of-the art review," Annals of Operations Research, Springer, vol. 251(1), pages 7-40, April.
    13. Harpreet Kaur & Surya Prakash Singh, 2019. "Flexible dynamic sustainable procurement model," Annals of Operations Research, Springer, vol. 273(1), pages 651-691, February.
    14. Jadidi, O. & Zolfaghari, S. & Cavalieri, S., 2014. "A new normalized goal programming model for multi-objective problems: A case of supplier selection and order allocation," International Journal of Production Economics, Elsevier, vol. 148(C), pages 158-165.
    15. Ventura, José A. & Bunn, Kevin A. & Venegas, Bárbara B. & Duan, Lisha, 2021. "A coordination mechanism for supplier selection and order quantity allocation with price-sensitive demand and finite production rates," International Journal of Production Economics, Elsevier, vol. 233(C).
    16. Ghadimi, Pezhman & Ghassemi Toosi, Farshad & Heavey, Cathal, 2018. "A multi-agent systems approach for sustainable supplier selection and order allocation in a partnership supply chain," European Journal of Operational Research, Elsevier, vol. 269(1), pages 286-301.
    17. Rihab Khemiri & Khaoula Elbedoui-Maktouf & Bernard Grabot & Belhassen Zouari, 2017. "A fuzzy multi-criteria decision making approach for managing performance and risk in integrated procurement-production planning," Post-Print hal-01758604, HAL.
    18. Aly Owida & P.J. Byrne & Cathal Heavey & Paul Blake & Khaled S. El-Kilany, 2016. "A simulation based continuous improvement approach for manufacturing based field repair service contracting," International Journal of Production Research, Taylor & Francis Journals, vol. 54(21), pages 6458-6477, November.
    19. Hu, Kuo-Jen & Yu, Vincent F., 2016. "An integrated approach for the electronic contract manufacturer selection problem," Omega, Elsevier, vol. 62(C), pages 68-81.
    20. Chang, Liu & Ouzrout, Yacine & Nongaillard, Antoine & Bouras, Abdelaziz & Jiliu, Zhou, 2014. "Multi-criteria decision making based on trust and reputation in supply chain," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 362-372.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:annopr:v:238:y:2016:i:1:p:243-276:10.1007/s10479-015-2004-4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.