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A hybrid approach for sustainable-circular supplier selection based on industry 4.0 framework to make the supply chain smart and eco-friendly

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  • Hassan Ali

    (Northwestern Polytechnical University)

  • Jingwen Zhang

    (Northwestern Polytechnical University)

  • Muhammad Shoaib

    (Chang’an University)

Abstract

Due to escalating climate variation and excessive resource utilization, organizations are under enormous pressure from governing agencies to diminish the adverse environmental influence of their products. In addition, Industry 4.0 has lately instigated substantial changes in the supply chain (SC) operations of enterprises. Therefore, to stay competitive, organizations are eager to purchase from those suppliers who can assist them in making their SC efficient and environment-friendly. In this concern, for the first time, this research amalgamates the notions of sustainability, circular economy, and Industry 4.0 for selecting the beverage sector’s suppliers using a novel hybrid approach. With the help of a thorough literature examination and experts’ feedback, fourteen sub-criteria were initially identified, which were later categorized into the three main aspects (economic, social, and circular) for suppliers’ evaluation. Subsequently, the fuzzy full consistency method (FUCOM) was utilized to compute the selected criteria and sub-criteria relative weights. Later, the fuzzy multi-objective optimization based on ratio analysis with the full multiplicative form (MULTIMOORA) method was employed to assess and rate the efficacy of suppliers based on three ranking subordinates. Finally, the obtained rankings were aggregated using the ordinal dominance theory (ODT) to identify the ultimate rank of the suppliers. To effectively manage the inherent uncertainty associated with the decision-makers (DMs) judgment, fuzzy set theory (FST) has been combined with the proposed methodology. A Pakistani beverage sector case study was offered to show the viability and usefulness of the suggested technique. Based on the obtained results, cost (C11), GIS/GPS assisted logistics (C15), training and awareness of employees on Industry 4.0 (C21), cyber-physical production and smart manufacturing (C13), and eco-friendly packaging (C33) sub-criteria were found to be the most significant criteria. In contrast, supplier S2 achieved the highest rank among selected suppliers based on its performance. Finally, the sensitivity and comparative analysis results reveal that the proposed hybrid technique delivers reliable and robust outcomes. The proposed research will offer a crucial guide for the managers of manufacturing organizations if they want to optimize their resource consumption and SC efficiency.

Suggested Citation

  • Hassan Ali & Jingwen Zhang & Muhammad Shoaib, 2024. "A hybrid approach for sustainable-circular supplier selection based on industry 4.0 framework to make the supply chain smart and eco-friendly," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(9), pages 22587-22624, September.
    • Handle: RePEc:spr:endesu:v:26:y:2024:i:9:d:10.1007_s10668-023-03567-5
    DOI: 10.1007/s10668-023-03567-5
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    References listed on IDEAS

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