1 Department of Mechanical and Manufacturing Engineering, The Faculty of Engineering and Science, Aalborg University, VBN2 The Faculty of Engineering and Science, Aalborg University, VBN3 Syddansk Universitet4 Nadar Saraswathi College of Engineering and Technology
A case study from Singapore
Abstract Green Supply Chain Management (GSCM) is a developing concept recently utilized by manufacturing firms of all sizes. All industries, small or large, seek improvements in the purchasing of raw materials, manufacturing, allocation, transportation efficiency, in curbing storage time, importing and disposing of products, with a view towards achieving environment objectives and reducing costs in the manufacturing process. Hence, GSCM has an impact both from an academic scholarly perspective, as well as from the view of industrial managers, because organizations benefit when they are socially responsible in addition to being efficiently managed. A significant way to implement responsible GSCM is to reconsider, in innovative ways, the purchase and supply cycle, and a preliminary step would be to ensure that the supplier of goods successfully incorporates green criteria. Therefore, this paper proposes a multi-criteria decision-making (MCDM) approach called Fuzzy Axiomatic Design (FAD) to select the best green supplier for Singapore-based plastic manufacturing company. At first, the environmental criteria was developed along with the traditional criteria based on the literature review and company requirements. Next, the FAD methodology evaluates the requirements of both the manufacturer (design needs) and the supplier (functional needs), and because multiple criteria must be considered, a multi-objective optimization model of a fuzzy nature must be developed. The application of the proposed approach in the case company has been illustrated and the result of this study helps firm to establish the systematic approach to select the best green supplier within the set of criteria. When the proposed methodology is applied, it allows not only to select the most appropriate green supplier but also helps to analyse most appropriate alternative supplier which shows the great difference when compared to the other approaches. Finally, the managerial implication, conclusions of the study is discussed.
Journal of Cleaner Production, 2015, Vol 96, p. 194-208
Environmental performance; Fuzzy Axiomatic Design; Green supplier selection; Multi criteria decision making