Green-based supplier selection using BWM and VIKOR methods in the Indonesian manufacturing sector

Yudam Alkolid; V. Reza Bayu Kurniawan; Syamsul Ma'arif; Nerda Zura Zaibidi; Norfaridatul Akmaliah Othman

doi:10.21831/jeatech.v4i2.62852

Green-based supplier selection using BWM and VIKOR methods in the Indonesian manufacturing sector

Yudam Alkolid, Department of Industrial Engineering, Universitas Sarjanawiyata Tamansiswa, Indonesia
V. Reza Bayu Kurniawan, Department of Industrial Engineering, Universitas Sarjanawiyata Tamansiswa, Indonesia
Syamsul Ma'arif, Department of Industrial Engineering, Universitas Sarjanawiyata Tamansiswa, Indonesia
Nerda Zura Zaibidi, School of Quantitative Sciences, Universiti Utara Malaysia, Malaysia
Norfaridatul Akmaliah Othman, Department of Technology Management, Universiti Teknikal Malaysia Melaka, Malaysia

10.21831/jeatech.v4i2.62852

Abstract

The selection of green-based suppliers remains a challenge for manufacturing firms in Indonesia. In today's business landscape, it is crucial to consider green aspects as part of sustainability practices when choosing suppliers. However, there is a limited number of studies providing frameworks for selecting suppliers based on green factors, particularly in developing countries. This study aimed to propose a framework for selecting suppliers using multicriteria decision-making (MCDM) techniques. A case study was conducted in an Indonesian metal manufacturing company that considers carbon reduction and incorporates traditional supplier selection factors such as quality, cost, and capacity. The study integrated two MCDM techniques, namely the best-worst method (BWM) and Višekriterijumsko Kompromisno Rangiranje (VIKOR), to evaluate and select green-based suppliers. BWM was employed to determine the weights of the criteria, while VIKOR ranked the suppliers. Seven criteria were identified, including cost (C₁), quality (C₂), delivery time (C₃), technology application (C₄), compliance with environmental regulations (C₅), green practice certification (C₆), and green efforts (C₇). Nine suppliers were screened and ranked accordingly. The results indicate that quality, delivery time, and cost are the top three ranked criteria based on their importance. Further, this study includes nine suppliers in which supplier S₇ demonstrates the best performance compared to the others. This study highlights that in Indonesia, most organizations tend to prioritize traditional criteria, while green factors are still overlooked. However, the company examined in this study has taken the initiative to include environmental factors in its decision-making process. The findings of this study contribute to the development of a framework for selecting green suppliers in a developing country context.

Keywords

supplier selection; green factors; manufacturing; BWM; VIKOR

Full Text:

PDF

References

A. Basu, T. Jain, and J. Hazra, “Supplier selection under production learning and process improvements,” Int J Prod Econ, vol. 204, pp. 411–420, Oct. 2018, doi: 10.1016/j.ijpe.2018.08.015.

J. Bezecný et al., “EVALUATION OF SUPPLIERS’ QUALITY AND SIGNIFICANCE BY METHODS BASED ON WEIGHTED ORDER,” Acta logistica, vol. 6, no. 1, pp. 1–4, Mar. 2019, doi: 10.22306/al.v6i1.110.

G. O. Kaya, S. S. Islam, and A. M. Aamer, “Supply Chain Management in Indonesia,” International Journal of Project Management and Productivity Assessment, vol. 10, no. 1, pp. 1–11, Feb. 2022, doi: 10.4018/IJPMPA.291696.

E. Avdagić-Golub, A. Hasković Džubur, and B. Memić, “Quality management as the basis of business company operations for the purpose of customer satisfaction,” Science, Engineering and Technology, vol. 1, no. 1, pp. 52–58, Apr. 2021, doi: 10.54327/set2021/v1.i1.4.

P. Jana, “Supplier selection under strategic decision environment,” Independent Journal of Management & Production, vol. 11, no. 1, p. 065, Feb. 2020, doi: 10.14807/ijmp.v11i1.1018.

L. Suharti and A. Sugiarto, “A QUALITATIVE STUDY OF GREEN HRM PRACTICES AND THEIR BENEFITS IN THE ORGANIZATION: AN INDONESIAN COMPANY EXPERIENCE,” Business: Theory and Practice, vol. 21, no. 1, pp. 200–211, Mar. 2020, doi: 10.3846/btp.2020.11386.

A. Hermawan, I. S. Aisyah, A. Gunardi, and W. Y. Putri, “International Journal of Energy Economics and Policy Going Green: Determinants of Carbon Emission Disclosure in Manufacturing Companies in Indonesia,” International Journal of Energy Economics and Policy |, vol. 8, no. 1, pp. 55–61, 2018, [Online]. Available: http:www.econjournals.com

B. Solikhah, A. Wahyudin, and Subowo, “Carbon emissions of manufacturing companies in Indonesia stock exchange: a sustainable business perspective,” J Phys Conf Ser, vol. 1567, no. 4, p. 042086, Jun. 2020, doi: 10.1088/1742-6596/1567/4/042086.

A.-N. El-Kassar and S. K. Singh, “Green innovation and organizational performance: The influence of big data and the moderating role of management commitment and HR practices,” Technol Forecast Soc Change, vol. 144, pp. 483–498, Jul. 2019, doi: 10.1016/j.techfore.2017.12.016.

D. M. Utama, M. S. Asrofi, and I. Amallynda, “Integration of AHP-MOORA Algorithm in Green Supplier Selection in the Indonesian Textile Industry,” in Journal of Physics: Conference Series, IOP Publishing Ltd, Jun. 2021. doi: 10.1088/1742-6596/1933/1/012058.

B. Garcia, V. León, and A. Hidalgo Gallardo, “Supplier selection for Mexican manufacturing MSMEs: A study-based on multi-criteria approach,” Journal of the International Council for Small Business, vol. 2, no. 4, pp. 347–354, 2021, doi: 10.1080/26437015.2021.1939199.

J. Zhang, D. Yang, Q. Li, B. Lev, and Y. Ma, “Research on Sustainable Supplier Selection Based on the Rough DEMATEL and FVIKOR Methods,” 2020, doi: 10.3390/su.

V. R. B. Kurniawan and F. H. Puspitasari, “A Fuzzy BWM Method for Evaluating Supplier Selection Factors in a SME Paper Manufacturer,” IOP Conf Ser Mater Sci Eng, vol. 1071, no. 1, p. 012004, Feb. 2021, doi: 10.1088/1757-899x/1071/1/012004.

Y. Li, A. Diabat, and C. C. Lu, “Leagile supplier selection in Chinese textile industries: a DEMATEL approach,” Ann Oper Res, vol. 287, no. 1, pp. 303–322, Apr. 2020, doi: 10.1007/s10479-019-03453-2.

Q. Wu, L. Zhou, Y. Chen, and H. Chen, “An integrated approach to green supplier selection based on the interval type-2 fuzzy best-worst and extended VIKOR methods,” Inf Sci (N Y), vol. 502, pp. 394–417, Oct. 2019, doi: 10.1016/j.ins.2019.06.049.

F. Ecer, “Multi-criteria decision making for green supplier selection using interval type-2 fuzzy AHP: a case study of a home appliance manufacturer,” Operational Research, vol. 22, no. 1, pp. 199–233, Mar. 2022, doi: 10.1007/s12351-020-00552-y.

M. Sukmawati and A. D. Setiawan, “A Conceptual Model of Green Supplier Selection in the Manufacturing Industry Using AHP and TOPSIS Methods,” in ICBIR 2022 - 2022 7th International Conference on Business and Industrial Research, Proceedings, Institute of Electrical and Electronics Engineers Inc., 2022, pp. 659–664. doi: 10.1109/ICBIR54589.2022.9786388.

P. Hąbek and J. Czarnecka, “Incorporating Sustainability into Supplier Development Process,” Multidisciplinary Aspects of Production Engineering, vol. 4, no. 1, pp. 355–364, Sep. 2021, doi: 10.2478/mape-2021-0032.

P. H. Nyimbili and T. Erden, “Comparative evaluation of GIS-based best–worst method (BWM) for emergency facility planning: perspectives from two decision-maker groups,” Natural Hazards, vol. 105, no. 1, pp. 1031–1067, Jan. 2021, doi: 10.1007/s11069-020-04348-3.

J. Rezaei, “Best-worst multi-criteria decision-making method,” Omega (Westport), vol. 53, pp. 49–57, Jun. 2015, doi: 10.1016/j.omega.2014.11.009.

J. Zhao, X.-Y. You, H.-C. Liu, and S.-M. Wu, “An Extended VIKOR Method Using Intuitionistic Fuzzy Sets and Combination Weights for Supplier Selection,” Symmetry (Basel), vol. 9, no. 9, p. 169, Aug. 2017, doi: 10.3390/sym9090169.

Sasikumar P. and Vimal K. E. K., “Evaluation and Selection of Green Suppliers Using Fuzzy VIKOR and Fuzzy TOPSIS,” 2019, pp. 202–218. doi: 10.4018/978-1-5225-5424-0.ch012.

Konys, “Green Supplier Selection Criteria: From a Literature Review to a Comprehensive Knowledge Base,” Sustainability, vol. 11, no. 15, p. 4208, Aug. 2019, doi: 10.3390/su11154208.

S. L. Ngan et al., “Prioritization of sustainability indicators for promoting the circular economy: The case of developing countries,” Renewable and Sustainable Energy Reviews, vol. 111, pp. 314–331, Sep. 2019, doi: 10.1016/j.rser.2019.05.001.

A. T. Alabi and S. O. Issa, “Corporate Disclosure of Sustainability Reporting and Value Relevance in Developing Countries - A Review of Literature,” TIJAB (The International Journal of Applied Business), vol. 6, no. 2, pp. 161–171, Nov. 2022, doi: 10.20473/tijab.v6.I2.2022.36797.

M. Oroojeni Mohammad Javad, M. Darvishi, and A. Oroojeni Mohammad Javad, “Green supplier selection for the steel industry using BWM and fuzzy TOPSIS: A case study of Khouzestan steel company,” Sustainable Futures, vol. 2, Jan. 2020, doi: 10.1016/j.sftr.2020.100012.

L. Xiong, S. Zhong, S. Liu, X. Zhang, and Y. Li, “An Approach for Resilient-Green Supplier Selection Based on WASPAS, BWM, and TOPSIS under Intuitionistic Fuzzy Sets,” Math Probl Eng, vol. 2020, 2020, doi: 10.1155/2020/1761893.

G. Qu, Z. Zhang, W. Qu, and Z. Xu, “Green supplier selection based on green practices evaluated using fuzzy approaches of TOPSIS and ELECTRE with a case study in a Chinese internet company,” Int J Environ Res Public Health, vol. 17, no. 9, May 2020, doi: 10.3390/ijerph17093268.

DOI: https://doi.org/10.21831/jeatech.v4i2.62852