A Fuzzy AHP-TOPSIS Framework for the Risk Assessment of Green Supply Chain Implementation in the Textile Industry

Document Type : Research Paper

Authors

1 University of Agriculture, Faisalabad, Pakistan

2 Sichuan University, Chengdu, China

3 National Textile University, Faisalabad, Pakistan

Abstract

In the emerging supply chain environment, green supply chain risk management plays a significant role than ever. Risk is an inherent uncertainty and has tendency to disrupt the typical green supply chain management (GSCM) operations and eventually reduce the success rate of industries. In order to mitigate the consequences, a fuzzy multi-criteria group decision making modeling (FMCGDM) which could evaluate the potential risks in the context of (GSCM) is needed from the industrial point of view. Therefore, this research proposes a combined fuzzy analytical hierarchy process (AHP) to calculate the weight of each risk criterion and sub-criterion and technique for order performance by similarity to ideal solution (TOPSIS) methodology to rank and assess the risks associated with implementation of (GSCM) practices under the fuzzy environment. The proposed fuzzy risk-oriented evaluation model is applied to a practical case of textile manufacturing industry. Finally, the proposed model helps the researchers and practitioners to understand the importance of conducting appropriate risk assessment when implementing green supply chain initiatives.

Keywords

Main Subjects


Adler, J., (2006). Going green. Newsweek, July 17, pp. 42–52. www.msnbc.msn.com.

Ashish, J. D., & Hari, V. (2014). Emerging supplier selection criteria in the context of traditional versus green supply chain management. International Journal of Managing Value and Supply Chains, Vol. 5 (1), pp. 267-289.

Azevedo, S. G., Carvalho, H., & Machado, V. C. (2011). The influence of green practices on supply chain performance: a case study approach. Transportation Research Part E, Vol. 47, pp. 850–871.

Buyukozkan, G., & Cifci, G. (2012). A combined fuzzy AHP and fuzzy TOPSIS based strategic analysis of electronic service quality in healthcare industry. Expert Systems with Applications, Vol. 39(3), pp. 2341–2354.

Chan, F. T. S., Kumar, N., Tiwari, M. K., Lau, H. C. W., & Choy, K. L. (2008). Global supplier selection: a fuzzy-AHP approach. International Journal of Production Research, Vol. 46(14), 3825– 3857.

Chan, F.T.S., Chan, H.K., 2010. An AHP model for selection of suppliers in the fast changing fashion market. International Journal of Advanced Manufacturing Technology, Vol. 51 (9-12), pp. 1195– 1207.

Chang, C.-W., Wu, C.-R., Lin, C.-T., & Chen, H.-C. (2007). An application of AHP and sensitivity analysis for selecting the best slicing machine. Computers and Industrial Engineering, Vol. 52(2), pp. 296–307.

Chena, C.-T., Lin, C.-T., & Huangb, S.-F. (2006). A fuzzy approach for supplier evaluation and selection in supply chain management. International Journal of Production Economics, Vol. 102(2), pp. 289–301.

Ekmekcioglu, M., Kaya, T., & Kahraman, C. (2010). Fuzzy multi-criteria disposal method and site selection for municipal solid waste. Waste Management, Vol. 30, pp. 1729–1736.

Ertugrul, I., & Karakasoglu, N. (2008). Comparison of fuzzy AHP and fuzzy TOPSIS methods for facility location selection. International Journal of Advanced Manufacturing Technology, Vol. 39(7–8), pp. 783–795.

Gao, Y., Liu, Z., Hu, D., Zhang, L., & Gu, G. (2010). Selection of green product design scheme based on multi-attribute decision-making method. International Journal of Sustainable Engineering, Vol. 3(4), pp. 277–291.

Holt, D., & Ghobadian, A. (2009). An empirical study of green supply chain management practices amongst UK manufacturers. Journal of Manufacturing Technology Management, Vol. 20(7), pp. 933–956.

Hwang, C. L., & Yoon, K. (1981). Multiple attributes decision making methods and applications. Berlin: Springer.
Kahraman, C., Cevik, S., Ates, N. Y., & Gulbay, M. (2007). Fuzzy multi-criteria evaluation of industrial robotic systems. Computers & Industrial Engineering, Vol. 52, pp. 414–433.

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, Vol. 233(2), pp. 432-447.

Kaya, T., & Kahraman, C. (2011). Multi-criteria decision making in energy planning using a modified fuzzy TOPSIS methodology. Expert Systems with Applications, Vol. 38, pp. 6577–6585.

Kim, S., Lee, K., Cho, J. K., & Kim, C. O. (2011). Agent-based diffusion model for an automobile market with fuzzy TOPSIS-based product adoption process. Expert Systems with Applications, Vol. 38, pp. 7270–7276.

Kumar, S., Teichman, S., & Timpernagel, T. (2012). A green supply chain is a requirement for profitability. International Journal of Production Research, Vol. 50(5), pp. 1278–1296.

Kutlu, A. C., & Ekmekcioglu, M. (2010). Fuzzy failure modes & effects analysis by using fuzzy TOPSIS integrated with fuzzy AHP. In Proceedings of the 1st International Symposium on Computing in Science & Engineering (pp. 706-713).

Luthra, S., Garg, D., & Haleem, A. (2013). Identifying and ranking of strategies to implement green supply chain management in Indian manufacturing industry using analytical hierarchy process. Journal of Industrial Engineering and Management, Vol. 6(4), pp. 930–962.

Mangla, S., Kumar, P., & Barua, M. K. (2014). An evaluation of attribute for improving the green supply chain performance via DEMATEL method. International Journal of Mechanical Engineering & Robotics Research, Vol. 1(1), pp. 30–35.

Min, H., & Kim, I. (2012). Green supply chain research: past, present, and future. Logistics Research, Vol. 4(1–2), pp. 39–47.

Nazam, M., Xu, J., Tao, Z., Jamil, A., Hashim, M. (2015). Risk evaluation of warehouse operations by using FMEA and combined AHP-TOPSIS approaches under fuzzy environment. International Journal of Development Research, Vol. 5(4), pp. 4328-4339.

Peattie, K. (2001). Golden goose or wild goose? The hunt for the green consumer. Business Strategy and the Environment, Vol. 10(4), pp. 187–199.

Qianlei, L. (2012). The study on the risk management of agricultural products green supply chain based on systematic analysis. In: Business Computing and Global Informatization (BCGIN), Second International Conference, pp. 250-253.

Ruimin, M., Yao, L., & Huang, R. (2012). The green supply chain management risk analysis. Advanced Materials Research, pp. 573–574.

Saaty, T. L. (1980). The analytic hierarchy process. New York: McGraw-Hill Book Co.
Kahraman, C., Cevik, S., Ates, N. Y., & Gulbay, M. (2007). Fuzzy multi-criteria evaluation of industrial robotic systems. Computers & Industrial Engineering, Vol. 52, pp. 414–433.

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, Vol. 233(2), pp. 432-447.

Kaya, T., & Kahraman, C. (2011). Multi-criteria decision making in energy planning using a modified fuzzy TOPSIS methodology. Expert Systems with Applications, Vol. 38, pp. 6577–6585.

Kim, S., Lee, K., Cho, J. K., & Kim, C. O. (2011). Agent-based diffusion model for an automobile market with fuzzy TOPSIS-based product adoption process. Expert Systems with Applications, Vol. 38, pp. 7270–7276.

Kumar, S., Teichman, S., & Timpernagel, T. (2012). A green supply chain is a requirement for profitability. International Journal of Production Research, Vol. 50(5), pp. 1278–1296.

Kutlu, A. C., & Ekmekcioglu, M. (2010). Fuzzy failure modes & effects analysis by using fuzzy TOPSIS integrated with fuzzy AHP. In Proceedings of the 1st International Symposium on Computing in Science & Engineering (pp. 706-713).

Luthra, S., Garg, D., & Haleem, A. (2013). Identifying and ranking of strategies to implement green supply chain management in Indian manufacturing industry using analytical hierarchy process. Journal of Industrial Engineering and Management, Vol. 6(4), pp. 930–962.

Mangla, S., Kumar, P., & Barua, M. K. (2014). An evaluation of attribute for improving the green supply chain performance via DEMATEL method. International Journal of Mechanical Engineering & Robotics Research, Vol. 1(1), pp. 30–35.

Min, H., & Kim, I. (2012). Green supply chain research: past, present, and future. Logistics Research, Vol. 4(1–2), pp. 39–47.

Nazam, M., Xu, J., Tao, Z., Jamil, A., Hashim, M. (2015). Risk evaluation of warehouse operations by using FMEA and combined AHP-TOPSIS approaches under fuzzy environment. International Journal of Development Research, Vol. 5(4), pp. 4328-4339.

Peattie, K. (2001). Golden goose or wild goose? The hunt for the green consumer. Business Strategy and the Environment, Vol. 10(4), pp. 187–199.

Qianlei, L. (2012). The study on the risk management of agricultural products green supply chain based on systematic analysis. In: Business Computing and Global Informatization (BCGIN), Second International Conference, pp. 250-253.

Ruimin, M., Yao, L., & Huang, R. (2012). The green supply chain management risk analysis. Advanced Materials Research, pp. 573–574.

Saaty, T. L. (1980). The analytic hierarchy process. New York: McGraw-Hill Book Co.
Samvedi, A., Jain, V., & Chan, F. T. (2013). Quantifying risks in a supply chain through integration of fuzzy AHP and fuzzy TOPSIS. International Journal of Production Research, Vol. 51(8), pp. 2433-2442.

Sarminento, R., & Thomas, A. (2010). Identifying improvement areas when implementing green initiatives using a multitier AHP approach. Benchmarking: An International Journal, Vol. 17(3), pp. 452– 463.

Silbermayr, L., & Minner, S. (2014). A multiple sourcing inventory model under disruption risk. International Journal of Production Economics, Vol. 149, pp. 37-46.

Srivastava, S. K. (2007). Green supply-chain management: A state-of-the-art literature review. International Journal of Management Review, Vol. 9(1), pp. 53–80.

Tseng, M. L., Lin, Y. H., & Chiu, A. S. F. (2009). FAHP based study of cleaner production implementation in PCB manufacturing firms, Taiwan. Journal of Cleaner Production, Vol. 17(14), pp. 1249–1256.

Vachon, S. (2007). Green supply chain practices and the selection of environmental technologies. International Journal of Production Research, Vol. 45(18), pp. 4357–4379.

Wang, X., Chan, H. K., Yee, W. Y., & Diaz-Rainey, I. (2012). A two-stage Fuzzy-AHP model for risk assessment of implementing green initiatives in the fashion supply chain. International Journal of Production Economics, Vol. 135(2), pp. 595–606.

Yong, D. (2006). Plant location selection based on fuzzy TOPSIS. International Journal of Advanced Manufacturing Technologies, Vol. 28, pp. 839–844.

Zhu, Q., Sarkis, J., & Lai, K. (2008). Green supply chain management implications for closing the loop. Transportation Research Part E: Logistics and Transportation Review, Vol. 44(1), pp. 1–18.