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Section II
Sustainable Supplier Selection
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5 | Green Procurement Research A Review and Modeling Supplier Selection Problem Using GREY Method Surajit Bag and Anoop Kumar Sahu |
CONTENTS
5.1 Introduction
5.1.1 Background
5.2 Literature Review
5.2.1 Planning the Review of Literature
5.2.2 Conducting the Literature Review
5.2.3 Reporting the Findings from Literature Review
5.3 Green Supplier Selection Using GREY-Based Methods: An Illustration
5.3.1 Theory of GREY Numbers: Mathematical Basis
5.3.2 The Multi-objective Optimization by Ratio Analysis (MOORA) Method
5.3.3 GREY-Full Multification Form
5.3.3.1 Analysis
5.4 Result and Discussion
5.5 Conclusion
5.5.1 Managerial Implications
5.5.2 Unique Contribution, Limitations, and Future Research Directions
List of Papers
References
5.1 INTRODUCTION
Business actions are vastly changing the natural environment and can endanger Mother Earth. Traditional business models did not take environmental thresholds into consideration and increasingly consumed natural resources without applying the principles of recycling, reusing, and remanufacturing (Dubey et al. 2016). In recent years, increased awareness has increased the amount of pressure on local and national government bodies to create environmental protection policies and enforce them strictly to prevent further environmental degradation (Mani et al. 2016). This has led to the evolution of green practices, and firms have started integrating green procurement initiatives with other business management functions (Bag and Gupta 2017; Tseng et al. 2017).
5.1.1 BACKGROUND
Procurement decisions have gained significance for multiple reasons; one of them is the considerable effect of vendors on the business performance of organizations (Dobos and Vörösmarty 2018). This has increased attention of buyers towards supplier evaluation and selection methods aimed at minimizing operational costs and enhancing competitiveness in global marketplace to create business opportunities (Bakeshlou et al. 2017; Yazdani et al. 2017). Selecting suppliers involves strategic decision-making in establishing successful adoption of green supply chain management practices (Gupta and Barua 2017; Yu et al. 2018). Thus, supplier selection plays a vital role in sustainable development of organization (Lo et al. 2018).
In today’s volatile business environment with increasing customer demands, organizations generally consider outsourcing decisions rather than manufacturing all components in-house to meet the dispatch requirements of customers. Therefore, selecting right suppliers is key to business success (Wetzstein et al. 2016).
The literature review reveals that the green supplier selection problem is a popular strategy for making outsourcing decisions based on environmental safeguards in times of limited resource availability and increased pollution levels from various industrial sources (Bakeshlou et al. 2017).
Supplier selections entail trial and error method practiced by organizations, intending to improve greenness and manufacture eco-friendly goods. Literature review reports various criteria mainly categorized under economic characteristics (pricing, quality, throughput times) and environmental characteristics (greenness, resource consumption, p...
