Developing Integrated Multi-Criteria Decision Making for Green Supplier Selection and Segmentation

Abstract

Besides raising public awareness of environmental issues and governmental regulations, green supplier selection and segmentation have become strategic issues for companies to gain and retain competitive advantages in the global market. This study proposes a new integrated MCDM model to select and segment green suppliers. The proposed approach combines the Analytic Hierarchy Process (AHP) and the Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) to rank and segment potential green suppliers. The proposed method allows the ratings of alternatives and the importance weights of criteria for green supplier selection and segmentation to be expressed in linguistic values. Finally, a case study is used to illustrate the computational procedure of the proposed approach.

Keywords

Green supplier selection and segmentation, AHP, TOPSIS

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