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A Novel Integrating Data Envelopment Analysis and Spherical Fuzzy MCDM Approach for Sustainable Supplier Selection in Steel Industry

Author

Listed:
  • Thi-Ly Nguyen

    (Department of Industrial Engineering and Management, National Kaohsiung University of Science and Technology, Kaohsiung 80778, Taiwan)

  • Phi-Hung Nguyen

    (Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam
    Department of Business Management, National Taipei University of Technology, Taipei 10608, Taiwan)

  • Hong-Anh Pham

    (Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam)

  • Thi-Giang Nguyen

    (Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam)

  • Duc-Thinh Nguyen

    (Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam)

  • Thi-Hoai Tran

    (Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam)

  • Hong-Cham Le

    (Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam)

  • Huong-Thuy Phung

    (Research Center of Applied Sciences, Faculty of Business, FPT University, Hanoi 100000, Vietnam)

Abstract

Supply chain sustainability, which takes environmental, economic, and social factors into account, was recently recognized as a critical component of the supply chain (SC) management evaluation process and known as a multi-criteria decision-making problem (MCDM) that is heavily influenced by the decision-makers. While some criteria can be analyzed numerically, a large number of qualitative criteria require expert review in linguistic terms. This study proposes an integration of Data Envelopment Analysis (DEA), spherical fuzzy analytic hierarchy process (SF-AHP), and spherical fuzzy weighted aggregated sum product assessment (SF-WASPAS) to identify a sustainable supplier for the steel manufacturing industry in Vietnam. In this study, both quantitative and qualitative factors are considered through a comprehensive literature review and expert interviews. The first step employs DEA to validate high-efficiency suppliers based on a variety of quantifiable criteria. The second step evaluates these suppliers further on qualitative criteria, such as economic, environmental, and social factors. The SF-AHP was applied to obtain the criteria’s significance, whereas the SF-WASPAS was adopted to identify sustainable suppliers. The sensitivity analysis and comparative results demonstrate that the decision framework is feasible and robust. The findings of this study can assist steel industry executives in resolving the macrolevel supplier selection problem. Moreover, the proposed method can assist managers in selecting and evaluating suppliers more successfully in other industries.

Suggested Citation

  • Thi-Ly Nguyen & Phi-Hung Nguyen & Hong-Anh Pham & Thi-Giang Nguyen & Duc-Thinh Nguyen & Thi-Hoai Tran & Hong-Cham Le & Huong-Thuy Phung, 2022. "A Novel Integrating Data Envelopment Analysis and Spherical Fuzzy MCDM Approach for Sustainable Supplier Selection in Steel Industry," Mathematics, MDPI, vol. 10(11), pages 1-28, June.
    • Handle: RePEc:gam:jmathe:v:10:y:2022:i:11:p:1897-:d:830094
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    2. Bihter Gizem Demircan & Kaan Yetilmezsoy, 2023. "A Hybrid Fuzzy AHP-TOPSIS Approach for Implementation of Smart Sustainable Waste Management Strategies," Sustainability, MDPI, vol. 15(8), pages 1-23, April.
    3. Phi-Hung Nguyen, 2023. "A Fully Completed Spherical Fuzzy Data-Driven Model for Analyzing Employee Satisfaction in Logistics Service Industry," Mathematics, MDPI, vol. 11(10), pages 1-34, May.
    4. Radosław Depczyński & Jim Secka & Katarzyna Cheba & Carlotta D’Alessandro & Katarzyna Szopik-Depczyńska, 2023. "Decision-Making Approach in Sustainability Assessment in Steel Manufacturing Companies—Systematic Literature Review," Sustainability, MDPI, vol. 15(15), pages 1-15, July.

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