A Fuzzy Multi-objective Supplier Selection Model in Green Supply Chain Network: Case in Palm Oil Industry

Abstract

Supplier selection plays a crucial role in purchasing management, as it has a significant impact on supply chain performance. Building strong and strategic relationships with suppliers can enhance overall business performance. To ensure the best supplier is chosen, businesses need to employ various selection criteria. Selecting the right supplier not only reduces purchasing costs but also improves the quality of the final product and enhances the company's competitiveness, leading to increased customer satisfaction. The problem of supplier selection is complex, and recent works in this field have emphasized the importance of using a highly demanded approach. This paper introduces a novel multi-objective model that considers demand allocation, greenhouse gas emissions, and the quality and service level of suppliers in a fuzzy environment. Few studies have explored models that incorporate all these four objective functions, making this research unique. The proposed model is transformed into a single objective form using the Zimmermann fuzzy approach based on the proposed fuzzy model. Numerical experiments are conducted to validate the effectiveness of the proposed model.