Developing the Green Supplier Selection Procedure Based on Analytical Hierarchy Process and Outranking Methods

With increasing concern toward environmental protection, enterprises have become more and more responsible for their products reducing pollution and damage. Green supply chain management (GSCM) considers a systematic and integrated approach for companies to maintain their sustainability and competitiveness in the market. Among issues of GSCM, green supplier selection is an important issue in improving environmental performance. This because a good supplier helps supply materials that comply with the regulations and further assists in green design, affecting the performance of the entire supplier chain. This study attempts to develop the green supplier selection procedure for the optoelectronics industry. The highest output value of the optoelectronics industry in Taiwan is the TFT-LCD industry. This study proposes an integrated method which combine analytical hierarchy process (AHP), Preference Ranking Organization METHod for Enrichment Evaluations (PROMETHEE) I and II methods to solve the green supplier selection problem for the TFT-LCD case. We first obtain the weight of each criterion from AHP, and then adopt PROMETHEE I and II methods to evaluate the green supplier selection problem. An illustrative example shows the proposed evaluation procedure is applicable and valuable.