Sustainable Supplier Selection Based on Grey Theory: Case Study in Steel Industry

Document Type : Research Paper

Authors

1 Industrial Group, Faculty of Management and Accounting, Shahid Behehshti University

2 Industrial Group, Faculty of Management and Accounting, Shahid Beheshti University

Abstract

Supplier Selection plays an important role in supply chain management. Attention to sustainability in supply chain makes supplier selection more controversial. Current studies have concentrated on economic factors for selection and evaluation of suppliers and there are few emphasis on triple factors including economic, environmental and social elements as the sustainability factors. Also, the methods that are used for supplier evaluation is almost based on linear programming, multi-objective programming, goal programming, integer programming, and the other exact methods. But in real situation, the evaluation criteria are ambiguous, qualitative and verbal. So, in this study, a new technique based on Grey theory is proposed for supplier evaluation that can be used in ambiguous situations. This technique helps managers to decide on supplier selection problems in real scenarios. In this study, the economic, environmental and social indices for suppliers' evaluation are identified based on experts' opinion and by applying Grey theory a technique is developed for suppliers' evaluation.  The novelty of this research is to develop a new technique with more levels of analysis in ambiguity, considering sustainability factors. The case study of this research is steel industry.

Keywords

Main Subjects

References

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Journal of Industrial Engineering Research in Production Systems
Volume 6, Issue 13
Winter and Spring 2019
March 2019
Pages 165-177

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