Green supplier selection using an AHP-Entropy-TOPSIS framework

Abstract

Purpose

This paper aims to focus on development of a green supplier selection model using an index system based on a combination of traditional supplier and environmental supplier selection criteria. Strategies that balance economic and environmental performance are increasingly sought after as enterprises that increasingly focus on the sustainability of their operations. Green supply chain management (GSCM) in particular, enables the integration of environmentally friendly suppliers into the supply chain to be systematised to fit with specific environmental regulations and policies. More persuasively, GSCM allows enterprises to improve profits whilst lowering impacts on the global environment.

Design/methodology/approach

A two-phase survey approach was adopted for the research. For the first phase, semi-structured interviews with senior management representatives of the case company – a Chinese-based electronic machinery manufacturer – were used to determine green supplier selection criteria. For the second phase, a two-part questionnaire survey was undertaken, the first part providing the data for an analytic hierarchy process (AHP) analysis of the first-phase criteria and the second with collecting data for an Entropy weight analysis. The resultant AHP and Entropy weights were then combined to form compromised weights – which, using technique for order preference by similarity to the ideal solution (TOPSIS) methodology, were translated into preferential rankings of suppliers.

Findings

Senior managers were found to rank traditional criteria more highly than environmental alternatives – the implication being that for the company, concerned, it may take some time before environmental awareness is fully assimilated into GSCM practice.

Originality/value

The paper moves us a significant step closer to the application more widely, of innovative AHP-Entropy/TOPSIS methodology to real-world SCM problems.

Citation

Freeman, J. and Chen, T. (2015), "Green supplier selection using an AHP-Entropy-TOPSIS framework", Supply Chain Management, Vol. 20 No. 3, pp. 327-340. https://doi.org/10.1108/SCM-04-2014-0142