Multi Criteria Supplier Selection from Social Aspects in Thai Tyre Rubber Industry

  • Napat Srinual Department of Design, Manufacturing and Engineering Management, Faculty of Engineering, University of Strathclyde, Glasgow, UK
  • Jorn Mehnen Department of Design, Manufacturing and Engineering Management, Faculty of Engineering, University of Strathclyde, Glasgow, UK
  • Rapee Udomsub Department of Logistics and Supply Chain Management, Faculty of Business Administration, Huachiew Chalermprakiet University
Keywords: Supplier Selection, Social aspects, Fuzzy sets, Multi Criteria Decision Making, Tyre Rubber Industry

Abstract

One of the main issues for companies and organisations is choosing the most appropriate supplier regarding social issues. Besides traditional criteria, companies started to focus on social issues in supplier selection. The methods of group decision making are well established approaches to tackle this issue which could allow decision makers to determine socially selected suppliersproblems. Many existing researches, nonetheless, encompasses scant review of ambiguity which is involved in the process of selecting suppliers. Hence, this study aims to propose a method combines the strength of the Fuzzy sets to deal with an uncertainty or vagueness with AHP-TOPSIS approach to select suppliers by concerning social aspects. AHP method used to identify criteria weights and TOPSIS approach is utilized to sort and select the best appropriate supplier. According to the literature review and company requirements, the criteria in social perspectives was developed to eight criteria. This study uses the questionnaire to gather data from top five managers judgements who had been chosen based on purposive and self-selection sampling in each department. A case study was carried out in Thailand in the Tyre rubber sector to validate result. The findings demonstrate that Job security (34%) is the most important criteria, following by Employeeshealth and safety (16%) and Training programs (12%) respectively. The study also presents that Supplier Dis the most suitable supplier above other suppliers.

Downloads

Download data is not yet available.

References

Ashby, A., Leat, M., & Hudson-Smith, M. (2012). Making connections: a review of supply chain management and sustainability literature. Supply Chain Management: An International Journal, 17(5), 497-516.

Azadnia, A. H., Saman, M. Z. M., & Wong, K. Y. (2015). Sustainable supplier selection and order lot-sizing: an integrated multi-objective decision-making process. International Journal of Production Research, 53(2), 383-408.

Badri Ahmadi, H., Hashemi Petrudi, S. H., & Wang, X. (2017). Integrating sustainability into supplier selection with analytical hierarchy process and improved grey relational analysis: a case of telecom industry. The International Journal of Advanced Manufacturing Technology, 90(12), 2413.

Bai, C., & Sarkis, J. (2010). Integrating sustainability into supplier selection with grey system and rough set methodologies. International Journal of Production Economics, 124(1), 252-264.

Bai, C., Dhavale, D., & Sarkis, J. (2016). Complex investment decisions using rough set and fuzzy c-means: An example of investment in green supply chains. European Journal of Operational Research, 248(2), 507-521.

Bai, C., Kusi-Sarpong, S., Badri Ahmadi, H., & Sarkis, J. (2019). Social sustainable supplier evaluation and selection: A group decision-support approach. International Journal of Production Research, 57(22), 7046-7067.

Banaeian, N., Mobli, H., Fahimnia, B., Nielsen, I. E., & Omid, M. (2018). Green supplier selection using fuzzy group decision making methods: A case study from the agri-food industry. Computers and Operations Research, 89, 337-347.

Baskaran, V., Nachiappan, S., & Rahman, S. (2011). Supplier assessment based on corporate social responsibility criteria in Indian automotive and textile industry sectors. International Journal of Sustainable Engineering, 4(4), 359-369.

Baynal, K., Sarı, T., & Koçdağ, V. (2016). A Combined AHP-PROMETHEE Approach For Project Selection & A Case Study In The Turkish Textile Industry. European Journal of Business & Social Sciences, 5(1), 202-216.

Bonfanti, A., & Bordignon, M. (2017). ‘Seafood from Slaves’: The Pulitzer Prize in the Light of the UN Guiding Principles on Business and Human Rights. Global Policy, 8(4), 498-504.

Büyüközkan, G., & Çifçi, G. (2012). A combined fuzzy AHP and fuzzy TOPSIS based strategic analysis of electronic service quality in healthcare industry. Expert Systems With Applications, 39(3), 2341-2354.

Carter, C. R., & Liane Easton, P. (2011). Sustainable supply chain management: evolution and future directions. International Journal of Physical Distribution & Logistics Management, 41(1), 46-62.

Chanchaichujit, J., Saavedra-Rosas, J., Quaddus, M., & West, M. (2016). The use of an optimisation model to design a green supply chain. The International Journal of Logistics Management, 27(2), 595-618.

Chen, C.-T. (2000). Extensions of the TOPSIS for group decision-making under fuzzy environment. Fuzzy Sets and Systems, 114(1), 1-9.

Cowper-Smith, A., & de Grosbois, D. (2011). The adoption of corporate social responsibility practices in the airline industry. Journal of Sustainable Tourism, 19(1), 59-77.

Ehrgott, M., Reimann, F., Kaufmann, L., & Carter, C. R. (2011). Social Sustainability in Selecting Emerging Economy Suppliers. Journal of Business Ethics, 98(1), 99-119.

Giannakis, M., Dubey, R., Vlachos, I., & Ju, Y. (2020). Supplier sustainability performance evaluation using the analytic network process. Journal of Cleaner Production, 1-12.

Goebel, P., Reuter, C., Pibernik, R., & Sichtmann, C. (2012). The influence of ethical culture on supplier selection in the context of sustainable sourcing. International Journal of Production Economics, 140(1), 7-17.

Govindan, K., Rajendran, S., Sarkis, J., & Murugesan, P. (2015). Multi criteria decision making approaches for green supplier evaluation and selection: a literature review. Journal of Cleaner Production, 98, 66-83

Guarnieri, P., & Trojan, F. (2019). Decision making on supplier selection based on social, ethical, and environmental criteria: A study in the textile industry. Resources, Conservation & Recycling, 141, 347-361.

Ho, W., Xu, X., & Dey, P. K. (2010). Multi-criteria decision making approaches for supplier evaluation and selection: A literature review. European Journal of Operational Research, 202(1), 16-24.

Hsu, C.-W., Kuo, T.-C., Chen, S.-H., & Hu, A. H. (2013). Using DEMATEL to develop a carbon management model of supplier selection in green supply chain management. Journal of Cleaner Production, 56, 164-172.

Humphreys, P., McIvor, R., & Chan, F. (2003). Using case-based reasoning to evaluate supplier environmental management performance. Expert Systems With Applications, 25(2), 141-153.

Huq, F. A., Chowdhury, I. N., & Klassen, R. D. (2016). Social management capabilities of multinational buying firms and their emerging market suppliers: An exploratory study of the clothing industry. Journal of Operations Management, 46(1), 19-37.

Ishizaka, A., & Labib, A. (2011). Review of the main developments in the analytic hierarchy process. Expert Systems With Applications, 38(11), 14336-14345.

Jia, P., Govindan, K., Choi, T.-M., & Rajendran, S. (2015). Supplier Selection Problems in Fashion Business Operations with Sustainability Considerations. Sustainability, 7(2), 1603-1619.

Jiang, Y.-P., Fan, Z.-P., & Ma, J. (2008). A method for group decision making with multi-granularity linguistic assessment information. Information Sciences, 178(4), 1098-1109.

Kannan, D., Jabbour, A. B. L. d. S., & Jabbour, C. J. C. (2014). Selecting green suppliers based on GSCM practices: Using fuzzy TOPSIS applied to a Brazilian electronics company. European Journal of Operational Research, 233(2), 432-447.

Karpak, B., Kumcu, E., & Kasuganti, R. R. (2001). Purchasing materials in the supply chain: managing a multi-objective task. European Journal of Purchasing and Supply Management, 7(3), 209-216.

Kim, S., Colicchia, C., & Menachof, D. (2018). Ethical Sourcing: An Analysis of the Literature and Implications for Future Research. Journal of Business Ethics, 152(4), 1033-1052.

Klassen, R. D., & Vereecke, A. (2012). Social issues in supply chains: Capabilities link responsibility, risk (opportunity), and performance. International Journal of Production Economics, 140(1), 103-115.

Krause, D. R., Handfield, R. B., & Tyler, B. B. (2007). The relationships between supplier development, commitment, social capital accumulation and performance improvement. Journal of Operations Management, 25(2), 528-545.

Kusakabe, K., & Pearson, R. (2013). Cross-border childcare strategies of Burmese migrant workers in Thailand. Gender, Place and Culture, 20(8), 960-978.

Lin, K.-P., Ho, H.-P., Hung, K.-C., & Pai, P.-F. (2012). Combining fuzzy weight average with fuzzy inference system for material substitution selection in electric industry. Computers & Industrial Engineering, 62(4), 1034-1045.

Luthra, S., Govindan, K., Kannan, D., Mangla, S. K., & Garg, C. P. (2017). An integrated framework for sustainable supplier selection and evaluation in supply chains. Journal of Cleaner Production, 140, 1686-1698.

Mani, V., Gunasekaran, A., Papadopoulos, T., Hazen, B., & Dubey, R. (2016). Supply Chain Social Sustainability for Developing Nations: Evidence from India. Resources, Conservation and Recycling, 111, 42–52.

Mansouri, N. (2016). A Case Study of Volkswagen Unethical Practice in Diesel Emission Test. International Journal of Science and Engineering Applications, 5(4), 211–216.

Mmereki, D., Machola, B., & Mokokwe, K. (2019). Status of waste tires and management practice in Botswana. Journal of the Air & Waste Management Association, 69(10), 1230-1246.

Ordoobadi, S. (2009). Application of Taguchi loss functions for supplier selection. Supply Chain Management: An International Journal, 14(1), 22-30.

Park, D., & Krishnan, H. A. (2001). Supplier Selection Practices among Small Firms in the United States: Testing Three Models. Journal of Small Business Management, 39(3), 259-271.

Purvis, B., Mao, Y., & Robinson, D. (2019). Three pillars of sustainability: in search of conceptual origins. Sustainability Science, 14(3), 681-695.

Saaty, T. L. (1994). Highlights and critical points in the theory and application of the Analytic Hierarchy Process. European Journal of Operational Research, 74(3), 426-447.

Sanayei, A., Farid Mousavi, S., & Yazdankhah, A. (2010). Group decision making process for supplier selection with VIKOR under fuzzy environment. Expert Systems With Applications, 37(1), 24-30.

Seuring, S., & Müller, M. (2008). From a literature review to a conceptual framework for sustainable supply chain management. Journal of Cleaner Production, 16(15), 1699-1710.

Srinual, N., Mehnen, J., & Sinrat, S. (2019). Green supplier evaluation and selection using fuzzy multi-criteria decision making in Thai tire rubber industry. Proceeding of The 6th NEU National and International Conference 2019 (NEUNIC 2019): Educational Innovation for Sustainable Society Development, 1, 3043-3055.

Theobald, R., & Arkani, S. (2007). Building civil society: is there a role for the corporate sector? The Journal of Corporate Citizenship, 27, 37-50.

Thornton, L. M., Autry, C. W., Gligor, D. M., & Brik, A. B. (2013). Does Socially Responsible Supplier Selection Pay Off for Customer Firms? A Cross‐Cultural Comparison. Journal of Supply Chain Management, 49(3), 66-89.

Tracey, M., & Leng Tan, C. (2001). Empirical analysis of supplier selection and involvement, customer satisfaction, and firm performance. Supply Chain Management: An International Journal, 6(4), 174-188.

Zhou, X., & Xu, Z. (2018). An Integrated Sustainable Supplier Selection Approach Based on Hybrid Information Aggregation. Sustainability, 10(7), 2543.

Published
2020-12-25
How to Cite
Srinual, N., Mehnen, J., & Udomsub, R. (2020). Multi Criteria Supplier Selection from Social Aspects in Thai Tyre Rubber Industry. Business Review Journal, 12(2), 168-187. Retrieved from https://so01.tci-thaijo.org/index.php/bahcuojs/article/view/237641
Section
Research Articles