An integrated grey-based multi-criteria optimisation approach for sustainable supplier selection and procurement-distribution planning

Abstract

Increasing pressure from government and stakeholders has led manufacturing companies to initiate sustainable practices into their supply chains (SCs). Integrating practices like sustainable supplier selection, performance-based order allocation and carbon efficient distribution planning can immensely improve companies' sustainable image and hence provide a competitive edge. The current study focuses on the development of an integrated two-stage multi-attribute optimisation model to discuss these issues. In first stage, Decision-Making Trial and Evaluation Laboratory (DEMATEL) technique based on grey numbers along with grey relational analysis (GRA) is utilised to evaluate suppliers' performance based on influential attributes. In the second stage, a multi-objective optimisation model was developed to optimise system's total cost, carbon emission and total value of purchasing (TVP) while contemplating delivery time windows. Weighted goal programming approach is utilised further for obtaining trade-off among multiple objectives. To validate the effectiveness of proposed methodology, a case study of an electronics company is considered.