Employing fuzzy DEA for Green-resilient supplier selection in an electronic industry of household appliances: a case study (Snowa)

Abstract

The choice of green-resilient supplier selection as a complex multi-criterion decision-making problem that often involves some uncertain situations, has become a key issue in the development of electronics manufacturing. Decision-making models supporting the assessment of supply chain performance must consider comprehensive elements in the supply network, covering not only cost and technical capabilities, but also greenness and resilience aspects. Therefore, in order to fill the research gap, the present study proposed an integrated decision-making method based on the fuzzy set theory and data envelopment analysis (DEA) approach for supplier selection in a supply chain network to handle uncertainties caused by decision makers ‘subjective judgments which could reduce the supply chain costs and environmental impact and, moreover, extend the value of resilience. A case study was used to validate the applicability of the proposed model. The sensitivity analysis was employed to examine the impact of the proposed model. Furthermore, the proposed DEA-based model has been compared with a supplier selection Fuzzy inference system based method in the literature to show its validation. The results indicated the proposed fuzzy DEA method can provide a reliable and consensus decision-making framework for enterprises to select green-resilient suppliers in the electronic industry of household appliances.

Appendices

Appendix A

Supplier selection indicators defined from literatures:

A	Cost	The unit price of the product
B	Quality	Quality of product, Defect rate at the customer’s plant, or the supplier’s process capability
C	Delivery performance	The supplier’s order cycle time, on-time delivery performance, and ship** accuracy
D	Innovation and technology	The supplier’s innovation and technological advances
E	Service and support	The supplier’s ability and willingness to assist with the design process and ability to provide technical assistance and support for post-sales services
F	Firm’s image and reputation	The supplier’s profile, image, market share, and brand recognition
G	Customer satisfaction	A measurement that determines how products or services provided by a company meet customer expectations
H	Production capacity	The volume of products that can be produced and delivered by the supplier using their current resources
I	Eco-design	Product materials that are easy to recycle and reuse, using as little material and energy as possible, thus reducing the impact on the environment
J	Training programs on environmental issues	Environmental staff training and involvement
K	Environmental competencies (EC)	Green product, Green warehousing, Green transportation, Use of green material in the production process, Measure of carbon management, Usage of toxic substances Environment production
L	Pollutant emission control level	Controlling of ecological impacts, Availability use of clean technologies, Pollution production, Air emission level
M	Energy efficiency	Recourse consumption, Waste water energy consumption, Effluence and waste, Amount of solid waste
N	Eco-design recycling	Percentage of recycle waste, Reuse air emissions, Green use, reduce the energy consumption in an environmentally sound manner
O	Level of disposal of hazardous chemicals	disposal of hazardous chemicals in accordance with green principles
P	Life cycle management	Management of the green products life cycle including design, material selection, manufacturing, marketing, and logistics
Q	Environment-conscious production	Producing products in accordance with green principles and with mimimal negative impact on environment
R	Fuel structure change	Increasing the share of new ane pure energies, hydroelectric and nuclear power
S	Responsiveness	The supplier’s ability and availability to quickly react or respond to customer requirements
T	Safety stock inventory	The supplier’s capacity to hold adequate amounts of essential materials and goods to support customers during disruptive events
U	Backup supplier contracts (BSC)	The supplier’s outsourcing contracts which enable customers to overcome shortages of supply capacity in the case of disruption
V	Invulnerable location	The supplier’s location which should be in a safe area with low risk of natural disasters to minimise impacts on supply chain processes
W	Delivery rerouting	Rerouting options (based on the supplier’s location) or the supplier’s ability to adjust transportation routes during disruptive events
X	Risk of production shutdown	The possibility of production shutdown, which may be caused by failure of facilities, machine breakdown, labour strikes, natural disasters, and technological problems
Y	Restoration	The supplier’s ability to restore damaged facilities and equipment or to resume production to a normal state of operation
Z	Robustness	Physical protection infrastructure and safety system of the supplier’s building and facilities to minimise negative impacts of disruption, especially in the case of natural disasters

Appendix B

Indicator’s weights.

Please encircle on the box you find appropriate.

Main Criteria (indicators)	Importance being attached by the company					Sub-criteria (indicators)
General aspects
						Product price: The unit price of the product	0	1	2	3	4	5
						Product quality: Quality of product, Defect rate at the customer’s plant, or the supplier’s process capability	0	1	2	3	4	5
						Delivery performance: The supplier’s order cycle time, on-time delivery performance, and ship** accuracy	0	1	2	3	4	5
						Innovation and technology: The supplier’s innovation and technological advances	0	1	2	3	4	5
	1	2	3	4	5	Service and support: The supplier’s ability and willingness to assist with the design process and ability to provide technical assistance and support for post-sales services	0	1	2	3	4	5
						Firm’s image and reputation: The supplier’s profile, image, market share, and brand recognition	0	1	2	3	4	5
						Production capacity: The volume of products that can be produced and delivered by the supplier using their current resources	0	1	2	3	4	5
						Customer satisfaction: A measurement that determines how products or services provided by a company meet customer expectations	0	1	2	3	4	5
						Any other indicator you consider: please specify ……………………………….	0	1	2	3	4	5
Resilient aspects
						Concern about preservation of resiliency
						Responsiveness: The supplier’s ability and availability to quickly react or respond to customer requirements	0	1	2	3	4	5
						Safety stock inventory: The supplier’s capacity to hold adequate amounts of essential materials and goods to support customers during disruptive events	0	1	2	3	4	5
						Backup Supplier Contracts (BSC): The supplier’s outsourcing contracts which enable customers to overcome shortages of supply capacity in the case of disruption	0	1	2	3	4	5
						Invulnerable location: The supplier’s location which should be in a safe area with low risk of natural disasters to minimise impacts on supply chain processes	0	1	2	3	4	5
						Delivery rerouting: Rerouting options (based on the supplier’s location) or the supplier’s ability to adjust transportation routes during disruptive events	0	1	2	3	4	5
						Risk of production shutdown: The possibility of production shutdown, which may be caused by failure of facilities, machine breakdown, labour strikes, natural disasters, and technological problems	0	1	2	3	4	5
	1	2	3	4	5	Restoration: The supplier’s ability to restore damaged facilities and equipment or to resume production to a normal state of operation	0	1	2	3	4	5
						Robustness: Physical protection infrastructure and safety system of the supplier’s building and facilities to minimise negative impacts of disruption, especially in the case of natural disasters	0	1	2	3	4	5
						Any other indicator you consider: please specify ……………………………….	0	1	2	3	4	5
Green aspects
						Ability to develop long-term relationships with customer	0	1	2	3	4	5
						Eco-design: Product materials that are easy to recycle and reuse, using as little material and energy as possible, thus reducing the impact on the environment	0	1	2	3	4	5
						Training programs on environmental issues: Environmental staff training and involvement	0	1	2	3	4	5
						Environmental Competencies (EC): Green product, Green warehousing, Green transportation, Use of green material in the production process, Measure of carbon management, Usage of toxic substances Environment production	0	1	2	3	4	5
						Pollutant emission control level: Controlling of ecological impacts, Availability use of clean technologies, Pollution production, Air emission level	0	1	2	3	4	5
						Energy Efficiency: Recourse consumption, Waste water energy consumption, Effluence and waste, Amount of solid waste
						Eco-Design Recycling: Percentage of recycle waste, Reuse air emissions, Green use, reduce the energy consumption in an environmentally sound manner	0	1	2	3	4	5
						Level of disposal of hazardous chemicals: disposal of hazardous chemicals in accordance with green principles	0	1	2	3	4	5
						Life cycle management: Management of the green products life cycle including design, material selection, manufacturing, marketing, and logistics
	1	2	3	4	5	Environment-conscious production: Producing products in accordance with green principles and with mimimal negative impact on environment	0	1	2	3	4	5
						Fuel structure change: Increasing the share of new ane pure energies, hydroelectric and nuclear power	0	1	2	3	4	5
						Any other indicator you consider: please specify ……………………………….	0	1	2	3	4	5

1. Not Considered = (0); Weak Importance = (1); Low Moderate Importance = (2); Moderate Importance = (3); Strong Importance = (4); Extreme Importance = (5)

Appendix C

Suppliers’ performances.

Please encircle on the box you find appropriate.

Sub-criteria (indicators)	Supplier’s performance with respect to sub-criteria
Cost: The unit price of the product	1	2	3	4	5
Quality: Quality of product, Defect rate at the customer’s plant, or the supplier’s process capability	1	2	3	4	5
Innovation and technology: The supplier’s innovation and technological advances	1	2	3	4	5
Production capacity: The volume of products that can be produced and delivered by the supplier using their current resources	1	2	3	4	5
Responsiveness: The supplier’s ability and availability to quickly react or respond to customer requirements	1	2	3	4	5
Safety stock inventory: The supplier’s capacity to hold adequate amounts of essential materials and goods to support customers during disruptive events	1	2	3	4	5
Robustness: Physical protection infrastructure and safety system of the supplier’s building and facilities to minimize negative impacts of disruption, especially in the case of natural disasters	1	2	3	4	5
Restoration: The supplier’s ability to restore damaged facilities and equipment or to resume production to a normal state of operation	1	2	3	4	5
Environmental Competencies (EC): Green product, Green warehousing, Green transportation, Use of green material in the production process, Measure of carbon management, Usage of toxic substances Environment production	1	2	3	4	5
Pollutant emission control level: Controlling of ecological impacts, Availability use of clean technologies, Pollution production, Air emission level	1	2	3	4	5
Energy Efficiency: Recourse consumption, Waste water energy consumption, Effluence and waste, Amount of solid waste	1	2	3	4	5
Fuel structure change: Increasing the share of new ane pure energies, hydroelectric and nuclear power	1	2	3	4	5

1. Weakly performed = (1); Low moderately performed = (2); Moderately performed = (3); Strongly performed = (4); Extremely performed = (5)