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Research on Green Supplier Selection Method Based on Improved AHP-FMEA

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  • Haopeng Chen

    (SILC Business School, Shanghai University, Shanghai 201899, China)

  • Huihui Wang

    (SILC Business School, Shanghai University, Shanghai 201899, China)

Abstract

The increasing demand for sustainable business practices has highlighted the need for a robust and risk-aware green supplier selection framework. Traditional supplier evaluation methods primarily focus on cost, quality, and delivery performance but often fail to incorporate sustainability and risk factors effectively. This study proposes an improved AHP-FMEA method that integrates the Analytic Hierarchy Process (AHP), entropy weight method, and Failure Mode and Effects Analysis (FMEA) to enhance decision-making in green supplier selection. The AHP method determines subjective criteria weights, while the entropy method adjusts these weights objectively to reduce bias. The FMEA approach incorporates risk assessment by identifying and quantifying potential supplier failures, ensuring a more comprehensive evaluation. A case study is conducted to validate the proposed model, comparing it with classical AHP and AHP-Entropy methods. The results show that incorporating risk factors significantly influences supplier ranking, demonstrating the model’s ability to provide a more scientific, objective, and risk-conscious evaluation. The proposed approach enhances the accuracy and reliability of green supplier selection, making it a valuable tool for sustainable supply chain management.

Suggested Citation

  • Haopeng Chen & Huihui Wang, 2025. "Research on Green Supplier Selection Method Based on Improved AHP-FMEA," Sustainability, MDPI, vol. 17(7), pages 1-29, March.
  • Handle: RePEc:gam:jsusta:v:17:y:2025:i:7:p:3018-:d:1622832
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    References listed on IDEAS

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    2. Handfield, Robert & Walton, Steven V. & Sroufe, Robert & Melnyk, Steven A., 2002. "Applying environmental criteria to supplier assessment: A study in the application of the Analytical Hierarchy Process," European Journal of Operational Research, Elsevier, vol. 141(1), pages 70-87, August.
    3. Jianwei Li & Deyu Zhong, 2024. "Comparing the Impact of Green Supplier Selection and Integration on Environmental Performance: An Analysis of the Moderating Role of Government Support," Sustainability, MDPI, vol. 16(16), pages 1-20, August.
    4. Sema Akin Bas, 2024. "A Hybrid Approach Based on Consensus Decision Making for Green Supplier Selection in Automotive Industry," Sustainability, MDPI, vol. 16(7), pages 1-29, April.
    5. Irina Canco & Drita Kruja & Tiberiu Iancu, 2021. "AHP, a Reliable Method for Quality Decision Making: A Case Study in Business," Sustainability, MDPI, vol. 13(24), pages 1-14, December.
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