IDEAS home Printed from https://ideas.repec.org/a/spr/annopr/v331y2023i1d10.1007_s10479-022-04812-2.html
   My bibliography  Save this article

Sustainable supplier selection model with a trade-off between supplier development and supplier switching

Author

Listed:
  • Aditi

    (University of Delhi
    University of Southern Denmark)

  • Devika Kannan

    (University of Southern Denmark
    Woxsen University)

  • Jyoti Dhingra Darbari

    (University of Southern Denmark
    University of Delhi)

  • P. C. Jha

    (University of Delhi)

Abstract

Due to growing concerns regarding sustainability, purchasing decisions are challenging and difficult tasks for decision-makers. This difficulty has compelled purchasing companies to know and understand the whole purchasing process and to give importance to purchasing associated decisions. A long-term relationship and investment are required for purchasing decisions because they impact significantly on a company’s performance and supply chain. Hence, supplier selection and sourcing strategy selection decisions are among a firm’s most important problems. In this study, sourcing strategy decisions include supplier development, which helps suppliers to improve their performance, and supplier switching, which searches for more proficient alternatives for supply. To solve these problems, this study provides an integrated multi-criteria decision-making (MCDM) model. The model contains four stages. First, the right set of sustainable key performance indicators (SKPIs) for evaluating the performance of suppliers is identified through a literature survey and discussions with the decision-making team. Second, the best worst method-measurement of alternatives and ranking according to the compromise solution method (BWM-MARCOS) approach is applied to determine the priority weights of SKPIs and the priority weights of incumbent and new suppliers based on identified SKPIs. Third, a bi-objective mathematical model is developed to determine which optimum sourcing strategy and potential supplier should be chosen based on the priority of incumbent and new suppliers while optimizing cost and sustainable performance. Fourth, the mathematical model is solved using Epsilon constraint method and min–max fuzzy approach. The applicability and efficiency of the proposed integrated MCDM model is demonstrated with a real case study from a home appliance manufacturing company. The key findings reveal that the proposed model can be utilized for strategic and effective sourcing planning. One of the important contributions of this work is to provide suggestions for deciding the appropriate sourcing strategy for suppliers using the outputs of the mathematical model.

Suggested Citation

  • Aditi & Devika Kannan & Jyoti Dhingra Darbari & P. C. Jha, 2023. "Sustainable supplier selection model with a trade-off between supplier development and supplier switching," Annals of Operations Research, Springer, vol. 331(1), pages 351-392, December.
    • Handle: RePEc:spr:annopr:v:331:y:2023:i:1:d:10.1007_s10479-022-04812-2
    DOI: 10.1007/s10479-022-04812-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10479-022-04812-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s10479-022-04812-2?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. Dobos, Imre & Vörösmarty, Gyöngyi, 2014. "Green supplier selection and evaluation using DEA-type composite indicators," International Journal of Production Economics, Elsevier, vol. 157(C), pages 273-278.
    2. Mohammed, Ahmed & Harris, Irina & Govindan, Kannan, 2019. "A hybrid MCDM-FMOO approach for sustainable supplier selection and order allocation," International Journal of Production Economics, Elsevier, vol. 217(C), pages 171-184.
    3. Yasemin Merzifonluoglu, 2015. "Impact of risk aversion and backup supplier on sourcing decisions of a firm," International Journal of Production Research, Taylor & Francis Journals, vol. 53(22), pages 6937-6961, November.
    4. Kannan Govindan, 2022. "Tunneling the barriers of blockchain technology in remanufacturing for achieving sustainable development goals: A circular manufacturing perspective," Business Strategy and the Environment, Wiley Blackwell, vol. 31(8), pages 3769-3785, December.
    5. Saif Mir & John A. Aloysius & Stephanie Eckerd, 2017. "Understanding Supplier Switching Behavior: The Role of Psychological Contracts in a Competitive Setting," Journal of Supply Chain Management, Institute for Supply Management, vol. 53(3), pages 3-18, July.
    6. Simonov Kusi-Sarpong & Himanshu Gupta & Joseph Sarkis, 2019. "A supply chain sustainability innovation framework and evaluation methodology," International Journal of Production Research, Taylor & Francis Journals, vol. 57(7), pages 1990-2008, April.
    7. Kheybari, Siamak & Kazemi, Mostafa & Rezaei, Jafar, 2019. "Bioethanol facility location selection using best-worst method," Applied Energy, Elsevier, vol. 242(C), pages 612-623.
    8. Zhan, Yuanzhu & Chung, Leanne & Lim, Ming K. & Ye, Fei & Kumar, Ajay & Tan, Kim Hua, 2021. "The impact of sustainability on supplier selection: A behavioural study," International Journal of Production Economics, Elsevier, vol. 236(C).
    9. Wagner, Stephan M. & Friedl, Gunther, 2007. "Supplier switching decisions," European Journal of Operational Research, Elsevier, vol. 183(2), pages 700-717, December.
    10. R. Calvi & Marie-Anne Le Dain & C. Herrmann, 2010. "Supplier selection for strategic supplier development," Post-Print halshs-00551400, HAL.
    11. Dey, Prasanta Kumar & Bhattacharya, Arijit & Ho, William, 2015. "Strategic supplier performance evaluation: A case-based action research of a UK manufacturing organisation," International Journal of Production Economics, Elsevier, vol. 166(C), pages 192-214.
    12. Joel S. Demski & David E.M. Sappington & Pablo T. Spiller, 1987. "Managing Supplier Switching," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 77-97, Spring.
    13. Zhang, Jianxiong & Tang, Wansheng & Hu, Mingmao, 2015. "Optimal supplier switching with volume-dependent switching costs," International Journal of Production Economics, Elsevier, vol. 161(C), pages 96-104.
    14. Schmitz, J. & Platts, K. W., 2004. "Supplier logistics performance measurement: Indications from a study in the automotive industry," International Journal of Production Economics, Elsevier, vol. 89(2), pages 231-243, May.
    15. Amid, A. & Ghodsypour, S.H. & O'Brien, C., 2011. "A weighted max-min model for fuzzy multi-objective supplier selection in a supply chain," International Journal of Production Economics, Elsevier, vol. 131(1), pages 139-145, May.
    16. Nima Kazemi & Ehsan Ehsani & Christoph H. Glock & Kurt Schwindl, 2015. "A mathematical programming model for a multi-objective supplier selection and order allocation problem with fuzzy objectives," International Journal of Services and Operations Management, Inderscience Enterprises Ltd, vol. 21(4), pages 435-465.
    17. Konrad Zimmer & Magnus Fröhling & Frank Schultmann, 2016. "Sustainable supplier management -- a review of models supporting sustainable supplier selection, monitoring and development," International Journal of Production Research, Taylor & Francis Journals, vol. 54(5), pages 1412-1442, March.
    18. Kazemi, N. & Ehsani, E. & Glock, C. H. & Schwindl, K., 2015. "A mathematical programming model for a multi-objective supplier selection and order allocation problem with fuzzy objectives," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 65220, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
    19. R. Calvi & Marie-Anne Le Dain & T.C. Fendt & C.J. Herrmann, 2010. "Supplier selection for strategic supplier development," Post-Print halshs-00534830, HAL.
    20. Eleonora Bottani & Piera Centobelli & Teresa Murino & Ehsan Shekarian, 2018. "A QFD-ANP Method for Supplier Selection with Benefits, Opportunities, Costs and Risks Considerations," International Journal of Information Technology & Decision Making (IJITDM), World Scientific Publishing Co. Pte. Ltd., vol. 17(03), pages 911-939, May.
    21. Maimouna Diouf & Choonjong Kwak, 2018. "Fuzzy AHP, DEA, and Managerial Analysis for Supplier Selection and Development; From the Perspective of Open Innovation," Sustainability, MDPI, vol. 10(10), pages 1-17, October.
    22. Ilkka Sillanpää & Khuram Shahzad & Elina Sillanpää, 2015. "Supplier development and buyer-supplier relationship strategies - a literature review," International Journal of Procurement Management, Inderscience Enterprises Ltd, vol. 8(1/2), pages 227-250.
    23. Badri Ahmadi, Hadi & Kusi-Sarpong, Simonov & Rezaei, Jafar, 2017. "Assessing the social sustainability of supply chains using Best Worst Method," Resources, Conservation & Recycling, Elsevier, vol. 126(C), pages 99-106.
    24. Chunguang Bai & Simonov Kusi-Sarpong & Hadi Badri Ahmadi & Joseph Sarkis, 2019. "Social sustainable supplier evaluation and selection: a group decision-support approach," International Journal of Production Research, Taylor & Francis Journals, vol. 57(22), pages 7046-7067, November.
    25. Kannan Govindan & Arash Khalili Nasr & Farzane Karimi & Hassan Mina, 2022. "Circular economy adoption barriers: An extended fuzzy best–worst method using fuzzy DEMATEL and Supermatrix structure," Business Strategy and the Environment, Wiley Blackwell, vol. 31(4), pages 1566-1586, May.
    Full references (including those not matched with items on IDEAS)

    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. Allan Dênisson Soares Silva & Wesley Vieira Silva & Luciana Santos Costa Vieira Silva & Nicholas Joseph Tavares Cruz & Zhaohui Su & Claudimar Pereira Veiga, 2025. "Interdependence between supply chains and sustainable development: global insights from a systematic review," Review of Managerial Science, Springer, vol. 19(3), pages 931-962, March.
    2. Chunguang Bai & Simonov Kusi-Sarpong & Sharfuddin Ahmed Khan & Diego Vazquez-Brust, 2021. "Sustainable buyer–supplier relationship capability development: a relational framework and visualization methodology," Annals of Operations Research, Springer, vol. 304(1), pages 1-34, September.
    3. Yadavalli, Venkata SS & Darbari, Jyoti Dhingra & Bhayana, Nidhi & Jha, P.C. & Agarwal, Vernika, 2019. "An integrated optimization model for selection of sustainable suppliers based on customers’ expectations," Operations Research Perspectives, Elsevier, vol. 6(C).
    4. Selçuk Perçin, 2022. "Circular supplier selection using interval-valued intuitionistic fuzzy sets," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(4), pages 5551-5581, April.
    5. Feng, Jianghong & Guo, Ping & Xu, Guangyi & Xu, Gangyan & Ning, Yu, 2024. "An integrated decision framework for resilient sustainable waste electric vehicle battery recycling transfer station site selection," Applied Energy, Elsevier, vol. 373(C).
    6. 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.
    7. Saheeb Ahmed Kayani & Salman Sagheer Warsi & Raja Awais Liaqait, 2023. "A Smart Decision Support Framework for Sustainable and Resilient Supplier Selection and Order Allocation in the Pharmaceutical Industry," Sustainability, MDPI, vol. 15(7), pages 1-30, March.
    8. Nikola Komatina & Danijela Tadić & Aleksandar Aleksić & Aleksandar D Jovanović, 2023. "The assessment and selection of suppliers using AHP and MABAC with type-2 fuzzy numbers in automotive industry," Journal of Risk and Reliability, , vol. 237(4), pages 836-852, August.
    9. Najafi, Mehdi & Zolfagharinia, Hossein, 2024. "A Multi-objective integrated approach to address sustainability in a meat supply chain," Omega, Elsevier, vol. 124(C).
    10. Shin Hee Baek & Jong Soo Kim, 2020. "Efficient Algorithms for a Large-Scale Supplier Selection and Order Allocation Problem Considering Carbon Emissions and Quantity Discounts," Mathematics, MDPI, vol. 8(10), pages 1-17, September.
    11. Alireza Arshadi Khamseh, 2021. "A Time-Dependent Sustainable–Flexible Supplier Selection Considering Uncertainty and TODIM Method in Iranian Dairy Industries," Global Journal of Flexible Systems Management, Springer;Global Institute of Flexible Systems Management, vol. 22(2), pages 113-126, June.
    12. Marcelo Werneck Barbosa & María de los Ángeles Raimann Pumpin & Gonzalo Vargas, 2025. "Prioritization of Water Footprint Management Practices and Their Effect on Agri-Food Firms’ Reputation and Legitimacy: A Best–Worst Method Approach," Sustainability, MDPI, vol. 17(8), pages 1-24, April.
    13. Bingsheng Liu & Meiqing Fu & Shuibo Zhang & Bin Xue & Qi Zhou & Shiruo Zhang, 2018. "An interval-valued 2-tuple linguistic group decision-making model based on the Choquet integral operator," International Journal of Systems Science, Taylor & Francis Journals, vol. 49(2), pages 407-424, January.
    14. Wu, Qun & Liu, Xinwang & Zhou, Ligang & Qin, Jindong & Rezaei, Jafar, 2024. "An analytical framework for the best–worst method," Omega, Elsevier, vol. 123(C).
    15. Amin Mahmoudi & Mehdi Abbasi & Xiaopeng Deng, 2022. "Evaluating the Performance of the Suppliers Using Hybrid DEA-OPA Model: A Sustainable Development Perspective," Group Decision and Negotiation, Springer, vol. 31(2), pages 335-362, April.
    16. Nadine Kafa & Anicia Jaegler & Joseph Sarkis, 2020. "Harnessing Corporate Sustainability Decision-Making Complexity: A Field Study of Complementary Approaches," Sustainability, MDPI, vol. 12(24), pages 1-23, December.
    17. Shoufeng Ji & Pengyun Zhao & Tingting Ji, 2023. "A Hybrid Optimization Method for Sustainable and Flexible Design of Supply–Production–Distribution Network in the Physical Internet," Sustainability, MDPI, vol. 15(7), pages 1-34, April.
    18. Ananna Paul & Nagesh Shukla & Sanjoy Kumar Paul & Andrea Trianni, 2021. "Sustainable Supply Chain Management and Multi-Criteria Decision-Making Methods: A Systematic Review," Sustainability, MDPI, vol. 13(13), pages 1-28, June.
    19. Brint, Andrew & Genovese, Andrea & Piccolo, Carmela & Taboada-Perez, Gerardo J., 2021. "Reducing data requirements when selecting key performance indicators for supply chain management: The case of a multinational automotive component manufacturer," International Journal of Production Economics, Elsevier, vol. 233(C).
    20. Mohammad Izadikhah & Reza Farzipoor Saen, 2023. "Developing a linear stochastic two-stage data envelopment analysis model for evaluating sustainability of supply chains: a case study in welding industry," Annals of Operations Research, Springer, vol. 322(1), pages 195-215, March.

    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:spr:annopr:v:331:y:2023:i:1:d:10.1007_s10479-022-04812-2. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.