IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v46y2015ip1p64-75.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420714000348
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2014.03.008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Mohamad Kassem & Nashwan Dawood, 2013. "A framework for the integration and coordination of the construction supply chain," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 5(2), pages 115-130.
    2. Singh, Kanhaiya & Kalirajan, Kaliappa, 2003. "A decade of economic reforms in India: the mining sector," Resources Policy, Elsevier, vol. 29(3-4), pages 139-151.
    3. Ho, William & Xu, Xiaowei & Dey, Prasanta K., 2010. "Multi-criteria decision making approaches for supplier evaluation and selection: A literature review," European Journal of Operational Research, Elsevier, vol. 202(1), pages 16-24, April.
    4. Govindan, Kannan & Kaliyan, Mathiyazhagan & Kannan, Devika & Haq, A.N., 2014. "Barriers analysis for green supply chain management implementation in Indian industries using analytic hierarchy process," International Journal of Production Economics, Elsevier, vol. 147(PB), pages 555-568.
    5. Saurav Datta & Chitrasen Samantra & Siba Sankar Mahapatra & Goutam Mondal & Partha Sarathi Chakraborty & Gautam Majumdar, 2013. "Selection of internet assessment vendor using TOPSIS method in fuzzy environment," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 5(1), pages 1-27.
    6. Yoram Wind & Thomas L. Saaty, 1980. "Marketing Applications of the Analytic Hierarchy Process," Management Science, INFORMS, vol. 26(7), pages 641-658, July.
    7. Mostafa Ahmadi & Sarkis L. Kantardjian, 2012. "A new model for supplier selection by an integrated method FAHP-IFTOPSIS," International Journal of Business Performance and Supply Chain Modelling, Inderscience Enterprises Ltd, vol. 4(2), pages 91-110.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shuang Yao & Donghua Yu & Yan Song & Hao Yao & Yuzhen Hu & Benhai Guo, 2018. "Dry Bulk Carrier Investment Selection through a Dual Group Decision Fusing Mechanism in the Green Supply Chain," Sustainability, MDPI, vol. 10(12), pages 1-19, November.
    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. V.V. Gedam & R.D. Raut & Ana Beatriz Lopes de Sousa Jabbour & N. Agrawal, 2021. "Moving the Circular Economy Forward in the Mining Industry: Challenges to Closed-Loop in an Emerging Economy," Post-Print hal-04275964, HAL.
    4. 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.
    5. 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.
    6. 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).
    7. 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.
    8. 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.
    9. 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.
    10. 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.
    11. Alves, Wellington & Ferreira, Paula & Araújo, Madalena, 2021. "Challenges and pathways for Brazilian mining sustainability," Resources Policy, Elsevier, vol. 74(C).
    12. 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.
    13. 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.
    14. 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.
    15. 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).
    16. 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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Srie Vidhya Janani, E. & Ganesh Kumar, P., 2015. "Evaluating the technical barriers of large scale sustainable wireless sensor network: A resources approach," Resources Policy, Elsevier, vol. 46(P1), pages 134-141.
    2. Pishchulov, Grigory & Trautrims, Alexander & Chesney, Thomas & Gold, Stefan & Schwab, Leila, 2019. "The Voting Analytic Hierarchy Process revisited: A revised method with application to sustainable supplier selection," International Journal of Production Economics, Elsevier, vol. 211(C), pages 166-179.
    3. Lixin Shen & Kannan Govindan & Madan Shankar, 2015. "Evaluation of Barriers of Corporate Social Responsibility Using an Analytical Hierarchy Process under a Fuzzy Environment—A Textile Case," Sustainability, MDPI, vol. 7(3), pages 1-22, March.
    4. Zhu, Bin & Xu, Zeshui, 2014. "Stochastic preference analysis in numerical preference relations," European Journal of Operational Research, Elsevier, vol. 237(2), pages 628-633.
    5. Pınar Kaya Samut, 2017. "Integrated FANP-f-MIGP model for supplier selection in the renewable energy sector," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 18(3), pages 427-450, May.
    6. Vivek Agrawal & Rajendra P. Mohanty & Sucheta Agarwal & Jitendra Kumar Dixit & Anand M. Agrawal, 2023. "Analyzing critical success factors for sustainable green supply chain management," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(8), pages 8233-8258, August.
    7. Kannan Govindan & R. Sivakumar, 2016. "Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches," Annals of Operations Research, Springer, vol. 238(1), pages 243-276, March.
    8. Kannan Govindan & R. Sivakumar, 2016. "Green supplier selection and order allocation in a low-carbon paper industry: integrated multi-criteria heterogeneous decision-making and multi-objective linear programming approaches," Annals of Operations Research, Springer, vol. 238(1), pages 243-276, March.
    9. Calabrese, Armando & Costa, Roberta & Levialdi, Nathan & Menichini, Tamara, 2019. "Integrating sustainability into strategic decision-making: A fuzzy AHP method for the selection of relevant sustainability issues," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 155-168.
    10. Nadine Kafa & Yasmina Hani & Abederrahman El Mhamedi, 2018. "Evaluating and selecting partners in sustainable supply chain network: a comparative analysis of combined fuzzy multi-criteria approaches," OPSEARCH, Springer;Operational Research Society of India, vol. 55(1), pages 14-49, March.
    11. Mangla, Sachin Kumar & Kumar, Pradeep & Barua, Mukesh Kumar, 2015. "Risk analysis in green supply chain using fuzzy AHP approach: A case study," Resources, Conservation & Recycling, Elsevier, vol. 104(PB), pages 375-390.
    12. T. Prabhuram & M. Rajmohan & Youchao Tan & R. Robert Johnson, 2020. "Performance evaluation of Omni channel distribution network configurations using multi criteria decision making techniques," Annals of Operations Research, Springer, vol. 288(1), pages 435-456, May.
    13. Theißen, Sebastian & Spinler, Stefan, 2014. "Strategic analysis of manufacturer-supplier partnerships: An ANP model for collaborative CO2 reduction management," European Journal of Operational Research, Elsevier, vol. 233(2), pages 383-397.
    14. María-José Verdecho & Faustino Alarcón-Valero & David Pérez-Perales & Juan-José Alfaro-Saiz & Raúl Rodríguez-Rodríguez, 2021. "A methodology to select suppliers to increase sustainability within supply chains," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 29(4), pages 1231-1251, December.
    15. Chand, Pushpendu & Thakkar, Jitesh J. & Ghosh, Kunal Kanti, 2018. "Analysis of supply chain complexity drivers for Indian mining equipment manufacturing companies combining SAP-LAP and AHP," Resources Policy, Elsevier, vol. 59(C), pages 389-410.
    16. Nuri Ozgur DOGAN, 2015. "Analyzing The Supplier Selection Process Of A Lean Manufacturing Firm: A Case Study," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 9(1), pages 1026-1033, November.
    17. Dalton Garcia Borges de Souza & Erivelton Antonio dos Santos & Nei Yoshihiro Soma & Carlos Eduardo Sanches da Silva, 2021. "MCDM-Based R&D Project Selection: A Systematic Literature Review," Sustainability, MDPI, vol. 13(21), pages 1-34, October.
    18. Sakthivel, G. & Sivaraja, C.M. & Ikua, Bernard W., 2019. "Prediction OF CI engine performance, emission and combustion parameters using fish oil as a biodiesel by fuzzy-GA," Energy, Elsevier, vol. 166(C), pages 287-306.
    19. Devendra K. Yadav & Akhilesh Barve, 2019. "Prioritization of cyclone preparedness activities in humanitarian supply chains using fuzzy analytical network process," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 97(2), pages 683-726, June.
    20. Kazancoglu, Yigit & Sagnak, Muhittin & Mangla, Sachin Kumar & Sezer, Muruvvet Deniz & Pala, Melisa Ozbiltekin, 2021. "A fuzzy based hybrid decision framework to circularity in dairy supply chains through big data solutions," Technological Forecasting and Social Change, Elsevier, vol. 170(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:46:y:2015:i:p1:p:64-75. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.