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Green vendor evaluation and selection using AHP and Taguchi loss functions in production outsourcing in mining industry

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  • Sivakumar, R.
  • Kannan, Devika
  • Murugesan, P.

Abstract

The fast growing demand of minerals due to increasing level of consumption has got the mining industries focus on developing and developed countries. Generally mining and mineral operation is an excellent contributor to economic growth and development in each country. Presently in many countries, the mining sector intends to augment their production operation with private participation due to the challenges that they are facing like, cost reduction, improving capital project management, employee management, environmental impacts, enhancing corporate social responsibility, global economy crisis, etc. The benefits of outsourcing are not only reduced cost in operations but also increased productivity and efficiency, accessing the relevant technical experts, implementation of the latest technologies like green technologies for green mining and ultimately increase in profit. Moreover, the mining industries receive significant global attention due to the nature of their environmental and social responsibilities, and it is necessary for the mining sector to turn their operation towards green practices. The proper vendor selection for production outsourcing may bring the solution to the challenges faced by the mining industries. The vendor selection in mining industries depends on varieties of conflicting tangible and intangible criteria and this paper deals with the suitable vendor selection for the production process in the green mining industries based on economic and environmental benefits and risk factors. This paper proposes a model frame work with case study through the combined approach of analytic hierarchy process (AHP) and Taguchi loss functions. The proposed method is used to measure the loss due to the outsourcing vendor performance for the pertinent benefit and risk factors and identify the best vendor to perform an outsourcing function in the mining industry production.

Suggested Citation

  • Sivakumar, R. & Kannan, Devika & Murugesan, P., 2015. "Green vendor evaluation and selection using AHP and Taguchi loss functions in production outsourcing in mining industry," Resources Policy, Elsevier, vol. 46(P1), pages 64-75.
    • Handle: RePEc:eee:jrpoli:v:46:y:2015:i:p1:p:64-75
    DOI: 10.1016/j.resourpol.2014.03.008
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    References listed on IDEAS

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    2. Modak, Mousumi & Ghosh, Kunal Kanti & Pathak, Khanindra, 2019. "A BSC-ANP approach to organizational outsourcing decision support-A case study," Journal of Business Research, Elsevier, vol. 103(C), pages 432-447.
    3. Prakash, Chandra & Barua, M.K., 2016. "An analysis of integrated robust hybrid model for third-party reverse logistics partner selection under fuzzy environment," Resources, Conservation & Recycling, Elsevier, vol. 108(C), pages 63-81.
    4. Seda Turk, 2022. "Taguchi Loss Function in Intuitionistic Fuzzy Sets along with Personal Perceptions for the Sustainable Supplier Selection Problem," Sustainability, MDPI, vol. 14(10), pages 1-18, May.
    5. Abid Haleem & Shahbaz Khan & Sunil Luthra & Harshit Varshney & Musaib Alam & Mohd Imran Khan, 2021. "Supplier evaluation in the context of circular economy: A forward step for resilient business and environment concern," Business Strategy and the Environment, Wiley Blackwell, vol. 30(4), pages 2119-2146, May.
    6. Anna Dos, 2017. "Multi-criteria decision methods for CSR management – literature review," Managerial Economics, AGH University of Science and Technology, Faculty of Management, vol. 18(1), pages 63-86.
    7. Alves, Wellington & Ferreira, Paula & Araújo, Madalena, 2021. "Challenges and pathways for Brazilian mining sustainability," Resources Policy, Elsevier, vol. 74(C).
    8. Modak, Mousumi & Pathak, Khanindra & Ghosh, Kunal Kanti, 2017. "Performance evaluation of outsourcing decision using a BSC and Fuzzy AHP approach: A case of the Indian coal mining organization," Resources Policy, Elsevier, vol. 52(C), pages 181-191.
    9. Attari, Mahdi Yousefi Nejad & Torkayesh, Ali Ebadi, 2018. "Developing benders decomposition algorithm for a green supply chain network of mine industry: Case of Iranian mine industry," Operations Research Perspectives, Elsevier, vol. 5(C), pages 371-382.
    10. Jafar Rezaei & Miłosz Kadziński & Chrysoula Vana & Lori Tavasszy, 2022. "Embedding carbon impact assessment in multi-criteria supplier segmentation using ELECTRE TRI-rC," Annals of Operations Research, Springer, vol. 312(2), pages 1445-1467, May.
    11. Kannan Govindan & Vernika Agarwal & Jyoti Dhingra Darbari & P. C. Jha, 2019. "An integrated decision making model for the selection of sustainable forward and reverse logistic providers," Annals of Operations Research, Springer, vol. 273(1), pages 607-650, February.
    12. Wang, Di & Shen, Ye & Zhao, Yueying & He, Wei & Liu, Xue & Qian, Xiangyan & Lv, Tao, 2020. "Integrated assessment and obstacle factor diagnosis of China's scientific coal production capacity based on the PSR sustainability framework," Resources Policy, Elsevier, vol. 68(C).
    13. Kannan Govindan & Aditi & Arshia Kaul & Jyoti Dhingra Darbari & P. C. Jha, 2023. "Analysis of supplier evaluation and selection strategies for sustainable collaboration: A combined approach of best–worst method and TOmada de Decisao Interativa Multicriterio," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4426-4447, November.
    14. Gedam, Vidyadhar V. & Raut, Rakesh D. & Lopes de Sousa Jabbour, Ana Beatriz & Agrawal, Nishant, 2021. "Moving the circular economy forward in the mining industry: Challenges to closed-loop in an emerging economy," Resources Policy, Elsevier, vol. 74(C).
    15. Chen Wang & Qingyan Yang & Shufen Dai, 2019. "Supplier Selection and Order Allocation under a Carbon Emission Trading Scheme: A Case Study from China," IJERPH, MDPI, vol. 17(1), pages 1-19, December.

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