Accepted Manuscript

An integrated framework for sustainable supplier selection and evaluation in supply

chains
Sunil Luthra, Kannan Govindan, Devika Kannan, Sachin Kumar Mangla, Chandra
Prakash Garg
PII:

S0959-6526(16)31419-6

DOI:

10.1016/j.jclepro.2016.09.078

Reference:

JCLP 8038

To appear in:

Journal of Cleaner Production

Received Date: 17 December 2015

Revised Date:

18 August 2016

Accepted Date: 12 September 2016

Please cite this article as: Luthra S, Govindan K, Kannan D, Mangla SK, Garg CP, An integrated
framework for sustainable supplier selection and evaluation in supply chains, Journal of Cleaner
Production (2016), doi: 10.1016/j.jclepro.2016.09.078.
This is a PDF file of an unedited manuscript that has been accepted for publication. As a service to
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Graphical Abstract
Phase 1

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Formation of a decision group (Experts from Industry

and Academia)

Recognize and select the criteria and sub-criteria for

analysis (SSS criteria and sub-criteria)
Literature
Survey

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Finalize the alternatives (Sustainable suppliers to be

selected from list)

Establishing hierarchical structure

Approval of hierarchical
structure?

No

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Phase 2:
AHP application

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Computing the criteria and sub-criteria weights

Phase 3:
VIKOR application

No

Approval of criteria
weights?

Yes

Evaluating the alternatives

Distinguish the final rank and select the most efficient

sustainable supplier among alternatives

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An integrated framework for sustainable supplier selection and evaluation in

supply chains

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Sunil Luthra
Department of Mechanical Engineering, Government Engineering College, Nilokheri, Haryana, India
Kannan Govindan
Professor and Head, Centre for Engineering Operations Management,
Department of Technology and Innovation, University of Southern Denmark, Odense, Denmark.
Devika Kannan1
Centre for Engineering Operations Management,
Department of Technology and Innovation, University of Southern Denmark, Odense, Denmark.
Sachin Kumar Mangla
Department of Mechanical Engineering Graphic Era University, Dehradun-248002, Uttarakhand, India.
Chandra Prakash Garg
Department of Management Studies, Indian Institute of Technology, Roorkee-247667, Uttarakhand, India.

Abstract: Due to increased customer knowledge and ecological pressures from markets and various
stakeholders, business organizations have emphasized the importance of greening and sustainability in their
supply chain through supplier selection. Therefore, a systematic and sustainability-focused evaluation system
for supplier selection is needed from an organizational supply chain perspective. This work proposes a
framework to evaluate sustainable supplier selection by using an integrated Analytical Hierarchy Process

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(AHP), ViseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR), a multi-criteria optimization and

compromise solution approach. Initially, 22 sustainable supplier selection criteria and three dimensions of
criteria (economic, environmental, and social) have been identified through literature and experts opinions.
A real world example of an automobile company in India is discussed to demonstrate the proposed
framework applicability. According to the findings, Environmental costs, Quality of product, Price of

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product, Occupational health and safety systems, and Environmental competencies have been ranked as
the top five sustainable supplier selection criteria. In addition, out of the five sustainable suppliers

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alternatives, supplier number three got the highest rank. The work presented in this paper may help
managers and business professionals not only to distinguish the important supplier selection criteria but also
to evaluate the most efficient supplier for sustainability in supply chain, while remaining competitive in the
market. Sensitivity analysis is also conducted to test the proposed framework robustness.

Keywords: Sustainable Supplier Selection; Supply Chains; Sustainability; AHP; VIKOR; Indian
automobile industry.

corresponding author (deka@iti.sdu.dk)

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1. Introduction

Due to the growing worldwide awareness of environment and sustainability, stringent government

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directions, and increasing community knowledge, organizations cannot neglect sustainability

concerns in business (Gaziulusoy et al., 2015; Govindan et al., 2016). In order to increase business
performance and competitive advantage, green and sustainability-focused supplier selection is a
crucial decision in industrial supply chains (Govindan et al., 2013; Grimm et al., 2014). The
sustainability-focused supply chain is an extension of the green supply chain in that it considers

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social criteria along with economic and green criteria from a supply chain context (Mangla et al.,
2014). Notably, green and/or sustainable practices (from here onwards, green and sustainable

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will be used interchangeably) are becoming an integral part of the planning process of modern
manufacturing organizations to improve supply chain performance (Rostamzadeh et al., 2015). The
incorporation of ecological, economic, and societal aspects to ensure sustainable development is a
foremost strategic task for business organizations in recent years (Benn et al., 2014). Suppliers may
play an important role in implementing sustainable supply chain initiatives and in achieving social,
environmental, and economic gains (Shen et al., 2013; Govindan et al., 2013). Thus, sustainable

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supplier selection (SSS) is a key strategic decision in the management of a sustainability-focused

supply chain (Amindoust et al., 2012), and needs to be explored methodically to implement
sustainable initiatives in supply chains (Grimm et al., 2016).
In this sense, this research work has the following objectives:
To understand and identify evaluation criteria for SSS from a supply chain context;

To distinguish the relative importance weights of the SSS evaluation criteria for supply

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chains;

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To select the most efficient sustainable supplier from a set of alternatives in supply chain;

To put forward managerial and practical implications of the study.

To achieve the above-mentioned objectives, an Analytical Hierarchy Process (AHP)VIseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) based integrated approach is
used for evaluation and selection of the sustainable suppliers in supply chain. This work is an initial
effort that proposes an AHP-VIKOR approach to identify and prioritize the SSS evaluation criteria
and to select the most efficient supplier from a set of alternatives for sustainability in the supply
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chain. AHP is a decision analysis technique that helps to prioritize the evaluation criteria of supplier
selection for sustainability. The VIKOR method (Akman, 2015; Sivakumar et al., 2015;
Rostamzadeh et al., 2015) is used to select the most efficient sustainable supplier from a set of
alternatives in the supply chain.

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In order to reveal the application of the proposed framework, a case example of an Indian
automobile industry is discussed in this work. It is noted that this Indian automobile industry is one
of the leading players in the world and has also been pushed by competition, regulation, and
communal pressures to move towards sustainable business development (Luthra et al., 2016a).
Further, the case company recognizes the benefits of employing effective SSS evaluation criteria

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and wants to develop a structural framework in order to select and evaluate the most efficient
sustainable suppliers from a set of alternatives in the supply chain.

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The reminder of this article is structured in the following way. A review of the existing literature
relevant to this study is included in Section 2. The solution methodology is detailed in Section 3.
Section 4 explains the proposed research framework. The proposed framework applicability is
presented in Section 5. A discussion of research findings with managerial and practical implications
comprises Section 6. Section 7 presents the sensitivity analysis. Section 8 offers concluding

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remarks, limitations, and suggests scope for future work.

2. Review of Literature

This study includes a review of several relevant papers. The responsible criteria chosen for this

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review are detailed as follows:

1. Selected articles should include environmental, ecological, and social sustainability adoption in

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the supply chain, and sustainable supplier selection and evaluation in the context of the supply
chain. The following keywords used for article collection include Supply Chain Management,
Environmental and Economic and Social and Sustainability, Environmental and Economic and
Social and Sustainability and Supply Chain Management, Sustainable Supplier Selection and
Evaluation, Supplier Selection and Evaluation and Sustainability, and Supplier Selection and
Evaluation and Sustainability and Supply Chain Management.
2. Collected literature resources were then investigated for final inclusion. The literature search was
conducted using the above-mentioned keywords. The Google Scholar search tool was used to
survey various databases such as Scopus; Ebscohost; Web of Science; Proquest, etc. These
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keywords were investigated in the abstract and main text of published works. Therefore, relevant
articles were analyzed for their contributions in this work.

2.1 Supplier selection and sustainability

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There has been substantial discussion in supplier selection studies related to the enhancement of
supplier capabilities in terms of improving their environmental performance, either by having
necessary certifications or by introducing sustainable aspects (Govindan et al., 2013). Supplier
selection has an important role in helping a business to achieve maximum ecological-economic
benefits (Hsu and Hu, 2009; Shaw et al., 2012; Kannan et al., 2014).

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Managing the supplier selection criteria and implementation practices is significant to support a
companys legitimacy and public image from an industrial standpoint (Bai and Sarkis, 2010; Lin,

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2013; Hsu et al., 2013). It is also recognized that managing supply chains with a focus on a
sustainable approach is a significant concern for business firms (Seuring, 2013; Grimm et al., 2014;
Kumar et al., 2016). Several literature studies have been conducted that address the various aspects
of green and sustainability-focused supplier decisions in supply chain management. For instance,
Walton et al. (1998) analyzed five furniture companies with respect to green tactics in their supply
chains. According to the findings, the companies mostly implemented ecological dimensions into

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their supplier selection process, a step that was considered fundamental to the designing of any
supply chain network. Hsu and Hu (2009) suggested hazardous substance management to lessen
environmental degradation in their supplier selection process. Lee et al. (2009) proposed a model
that evaluates the factors used to select a green supplier based on performance. Shaw et al. (2012)

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suggested a model to analyze supplier selection decisions related to carbon emissions. Hsu et al.
(2013) proposed a model to analyze the performance of the supplier considering carbon

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management issues; they listed thirteen important supplier carbon management criteria categorized
into three dimensions. The criteria of carbon information and training related to carbon
management were the two most influencing criteria in supplier selection. Shen et al. (2013)
evaluated green suppliers with respect to their environmental performance. Nine green supplier
evaluation criteria were identified in their study. Akman (2015) proposed a two-step supplier
evaluation framework (performance criteria and green criteria) to evaluate green supplier
development programs.
Bai and Sarkis (2010) analyzed supplier selection decisions by incorporating sustainability factors
in their model. Further, Bykzkan and ifi (2011) proposed a decision making model for an
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effective sustainable supplier evaluation based upon five criteria, namely: service quality, financial
performance, organization, technology and social responsibility, and environment competencies.
Amindoust et al. (2012) evaluated the supplier selection in a sustainable supply chain context. Their
suggested ranking model considered three criteria and eight sub criteria but their research did not

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capture all relevant criteria to sustainable supplier selection. Govindan et al. (2013) presented a
model for evaluating performance of a supplier under consideration of sustainability criteria. They
advised that organizations may recognize and rank opportunities of their supply chain activities in
the implementation of sustainability. Grimm et al. (2014) investigated the management of subsuppliers compliance with corporate sustainability standards (SCCSS). Their study findings

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suggest that the participation of strategic business partners has a positive effect on managing
SCCSS.

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Sarkis and Dhavale (2015) recommended that supplier selection is crucial for sustainable supply
chain partnership development and they noted that complexities occur when evaluating multiple
suppliers. They proposed a framework for supplier evaluation and selection taking a triple bottom
line approach. The results suggested that the utility of developed framework is evident and the
acceptance by management is important as well. Mahdiloo et al. (2015) suggested a model to
measure technical, environmental, and eco-efficiency standards of suppliers. Su et al. (2015)

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analyzed aspects and criteria structure for supplier prioritization to improve sustainable supply
chain management (SSCM); their results suggested that the recycle/reuse/reduce option has been
identified as the top criterion for supplier selection.
Grimm et al. (2016) addressed the sub-suppliers management from a sustainability viewpoint.

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They proposed a research framework to determine how well sub-suppliers management is at

attaining compliance with sustainability standards. Their research suggested that measuring sub-

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suppliers' compliance with a focal business organization's corporate sustainability standards is very
difficult for a quantitative study perspective. Trapp and Sarkis (2016) developed an optimization
model that simultaneously addresses supplier selection, supplier development, and sustainability
considerations. They advocated that supplier selection decisions are difficult in an organizational
supply chain context and that the incorporation of sustainability issues into the chain makes the
decision even more complex; thus; decisions need to be addressed efficiently for improving the
overall performance of the supply chain.

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2.2 Methodologies/techniques used in supplier selection towards green and sustainable
practices
Various models in the area of supplier selection towards green and sustainable practices have been
developed through a variety of methodologies/techniques suggested by different researchers. A

selection towards green and sustainable practices is given in Table 1.

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brief summary of the methodologies/techniques by various researchers and practitioners in supplier

Table 1: Summary of the methodologies/techniques by various researchers and practitioners in

supplier selection towards green and sustainable practices

Grimm et al.
(2014)
Kannan et al.
(2014)
Akman (2015)

Azadi et al.
(2015)
Hashemi et al.
(2015)

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Fuzzy AHP

Fuzzy inference system

Sustainable supplier selection with

incomplete information
Sustainable supplier selection

Fuzz AHP and Fuzzy Multi-Objective Supplier selection for developing low
Linear Programming (MOLP)
carbon supply chain
Fuzzy TOPSIS
Measurement
of
supplier
performances on the basis of
sustainability
DEMATEL
Supplier selection based on carbon
management model in GSCM
Fuzzy TOPSIS
Evaluation of green suppliers
performance in GSC
Rough
set
theory
and
Data Sustainability focused performance
Envelopment Analysis (DEA)
evaluation for suppliers
Grey ANP
Evaluation
of
green
supplier
development programs
Field study in two food supply chains
Critical factors for sub-supplier
management
Fuzzy TOPSIS
Green suppliers selection based on
GSCM practices
Fuzzy c means and VIKOR
Evaluation
of
green
supplier
development programs
DEA
Sustainable supplier performance
evaluation and selection
ANP and improved Grey relational Green supplier selection
analysis
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Shen
et
al.
(2013)
Bai and Sarkis
(2014)
Dou et al. (2014)

Issues addressed

Interpretive structural modeling and Analyzed green suppliers

AHP
Analytic Network Process (ANP)
Supplier
selection
incorporating
hazardous substance management
Fuzzy AHP
Green supplier selection
Grey system and Rough set
Sustainability into supplier selection

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Hsu et al. (2013)

Methodologies/techniques used

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Researcher
(Year)
Kannan et al.
(2008)
Hsu and Hu
(2009)
Lee et al. (2009)
Bai and Sarkis
(2010)
Bykzkan and
ifi (2011)
Amindoust et al.
(2012)
Shaw
et
al.
(2012)
Govindan et al.
(2013)

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Kannan
(2015)

et

al. Fuzzy axiomatic design approach

Green supplier selection

Supplier
selection
considering
technical, environment and ecoefficiency
Sarkis
and Bayesian framework and Monte Carlo Supplier selection for sustainable
Dhavale (2015)
Markov Chain (MCMC)
operations
Sivakumar et al. AHP and Taguchi loss functions
Vendor evaluation model
(2015)
Su et al. (2015)
Grey DEMATEL
Improving SSCM via supplier related
decisions
Grimm et al. Case study research
Sub-suppliers'
compliance
with
corporate sustainability standards
(2016)
Trapp and Sarkis Integer programming
Optimization model for supplier
(2016)
selection and development taking
sustainability considerations.

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Mahdiloo et al. DEA

(2015)

Researchers and practitioners have employed various decision approaches for analyzing the
green/sustainable supplier related problems. However, most researchers focused mainly on green
supplier problems. Only a few researchers focused on sustainable supplier selection and evaluation
decisions. Further, most researchers utilized a particular decision analysis technique to address their

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research problem. The rising trend for integrated approaches has been noticed in recent years.

2.3 Sustainable supplier selection evaluation criteria

The important criteria for SSS evaluation in SC have been identified through extensive literature

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resources and experts inputs. A total of 22 SSS evaluation criteria were identified through
extensive literature support (for details, see Table 2 and Table 3). Further, the 22 significant SSS
evaluation criteria identified were validated with the help of experts inputs and categorized into

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three dimensions of sustainability (for details, see Section 5.1).

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Table 2: Sustainable supplier selection evaluation criteria along with their description and sources

6
7
8
9
10

Environmental
(Env)

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15

18

20
21
22

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Capability of supplying the products at reasonable price

Generating a reasonable profit from product
Providing a significant quality level
Supplier should be flexible enough to handle market variations
It deals with the technological and financial aspects associated with the supplier domain
It deals with the production facilities and capacity requirements for a product

It ensures the right delivery and service of the product

Capability of supplying the products at marginal lead time
The tendency of shipping the products at minimum transportation cost
The structure, planning and implementing of suppliers policies for environmental
protection
Incorporating eco-friendly practices at the design and purchasing stages
The consumption of raw material and energy should be minimum while producing the
product
Green management (GRM)
The capability of product to maximize the environmental performance and management
Green packing and labeling (GL)
The capability of suppliers to take environmental considerations for packaging and
labeling
Waste management and pollution The raw material is such that wastage and pollution should be minimum while producing
prevention (WM)
the product
Environmental costs (EC)
The raw material and product should add minimum costs and damage to the environment
Environmental competencies (ENC)
Supplier's capability of using environmentally friendly materials, implementing clean
technologies, and reducing pollution effects
Green R & D and Innovation (GRD) The capability of suppliers to provide efforts on research and development activities to
innovate new cleaner technologies, processes, practices, and methods
Occupational health & safety It is concerned with the safety, health and welfare of the people engaged at suppliers
systems (OS)
workplace
The interests & rights of employees Concerns with the employees related factors and requirements to achieve sustainable
(IE)
effectiveness in the long term
The rights of stakeholders (RS)
Concerns with the moral rights of society having stakes in the business
Information Disclosure (IS)
Providing information to their customers and stakeholders regarding material used,
carbon emissions and toxins released during production, etc.

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17

19

Price of product (PP)

Profit on product (PR)
Quality of product (QP)
Flexibility (FL)
Technological & financial capability
(TC)
Production facilities and capacity
(PC)
Delivery and Service of product (DP)
Lead time required (LR)
Transportation cost (TRC)
Environment management systems
(EM)
Green design and purchasing(GDP)
Green manufacturing (GM)

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Brief description

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Economic
(Eco)

SSS evaluation criteria

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Sustainability
Dimensions

Social
(Soc)

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S.
No.
1
2
3
4
5

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Dou et al. (2014)

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Hashemi et al. (2015)

Bai and Sarkis (2014)

Shen et al. (2013)
Kilic (2013)

*
*
*

Rajesh and Ravi (2015)

Tahriri et al. (2014)

Sarkis and Dhavale (2015)

Grimm et al., 2014

Junior et al. (2013)

*
*

*
*
*

Kannan et al. (2014)

Govindan et al. (2013)

Baskaran et al. (2012)

Mafakheri et al. (2011)

Wang et al. (2012)

Azadnia et al. (2012)

Bykzkan and ifi

(2011)

Lin and Juang (2008)

Hutchins and Sutherland
(2008)

*
*
*
*

*
*
*
*

*
*
*
*
*
*
*
*
*
*
*
*
*
*

*
*
*
*

*
*
*
*

*
*
*
*
*
*

*
*
*

*
*

*
*
*

Amindoust et al. (2012)

Sanayei et al. (2010)

*
*

*
*
*

*
*
*

Ageron et al. (2012)

Kuo et al. (2010)

Tseng (2011)

Bai and Sarkis. (2010)

Lee et al. (2009)

*
*
*

*
*
*
*
*
*
*

*
*
*

*
*

*
*

*
*
*

*
*

*
*
*

*
*
*

*
*
*

*
*
*

*
*
*
*
*
*
*

*
*

*
*
*
*

*
*
*
*
*
*

*
*

*
*
*
*

*
*
*
*
*
*
*
*

*
*
*

*
*
*
*
*

*
*

*
*
*
*
*

PP
PR
QP
FL
TC
PC
DP
LR
TRC
EM
GDP
GM
GRM
GL
WM
EC
ENC
GRD
OS
IE
RS
IS

*
*
*

*
*

*
*
*
*
*
*

*
*
*

*
*

*
*
*

*
*

*
*

*
*

*
*
*
*
*

*
*

*
*

*
*
*
*
*
*

SSS
evaluation
criteria

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Table 3: Sustainable supplier selection evaluation criteria and their sources

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2.4 Research gaps and highlights

Supplier selection is a significant practice affecting the successive stages towards achieving
sustainability in supply chains (Kumar et al., 2014a). The sustainability-focused supply chain
should include traditional economic objectives as well as ecological and societal aspects (Ageron

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et al., 2012). In addition, evaluating and selecting appropriate suppliers in the sustainabilityfocused supply chain is extremely important because an organizations success depends on the
part played by suppliers (Hsu et al., 2013). In general, business organizations consider
conventional criteria such as quality, flexibility, and price in evaluating the overall performance

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of their suppliers. However, the supplier evaluation process becomes more complex when
sustainability criteria are included in addition to conventional qualities (Brandenburg et al., 2014;

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Azadi et al. (2015).

Notably, many works have pursued issues relative to economic-environmental focused supplier
selection decisions in developed countries (Amindoust et al., 2012; Hsu et al., 2013), but there is
still limited literature on supplier selection towards sustainability in the context of developing
countries (Govindan et al., 2013; Grimm et al., 2014). A significant lack of knowledge and
awareness in the area of SSS (economic-ecological-social dimensions) exists in a developing

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country like India (Luthra et al., 2016a). In addition, sustainability criteria are likely to vary
from the point of view of developing nations because customers may not be willing to pay more
for sustainable products (Gandhi et al., 2016). Further, there are several gaps linked to SSS that
can be explored (Anisul Huq et al., 2014; Grimm et al., 2016). For instance, existing literature

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fails to identify that the proper SSCM criteria should align with supplier selection criteria within
a hierarchical structure (Su et al., 2015). In addition, literature suggests that a wide range of work

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exists on green focused supplier selection (Akman, 2015; Kannan et al., 2015). Yet, researchers
have neglected the social dimensions in supplier selection decision making (Mahdiloo et al.
2015). In line with this, Seuring and Mller (2008) reported that there is an obvious deficit in
supply chain management and purchasing literature on the incorporation of all three dimensions
of sustainable development in supply chains. Thus, the concept of sustainability-focused supplier
selection and evaluation is becoming an important consideration for business organizations.
Hence, it is noted that there is a clear gap in research in the sphere of SSS and evaluation in the
supply chain. It is also noted that applied techniques in the area of SSS are mostly fuzzy-based
single model approaches and are not integrative in nature (Shaw et al., 2012; Shen et al., 2013).
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In addition, Govindan et al. (2015a) explored the literature on MCDM approaches for green
supplier evaluation. Their review suggested that AHP is the most commonly used MCDM
technique for evaluating the green supplier decisions, but integrating AHP with other approaches
may be required to address the problem more efficiently and flexibly. Thus, the need arises to

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develop a framework to identify SSS criteria and to evaluate the most efficient supplier decisions
from a supply chain context. In this sense, an attempt is made to identify relevant criteria that
include sustainability-oriented (ecological, economic, and societal) aspects for supplier selection
initiatives. Further, this work uses an integrated AHPVIKOR framework for evaluating the SSS

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related identified criteria. From the best of our knowledge, this paper is an original effort in

3. Solution Methodology

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evaluating the SSS in supply chain using the integrated AHPVIKOR approach.

This work proposes to use an integrated AHP-VIKOR approach as a solution methodology to

evaluate the SSS decisions from a supply chain context. AHP obtains the weights of SSS
dimensions and their respective criteria, and then those weights obtained through AHP technique

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are used to select the most efficient sustainable suppliers by VIKOR. AHP helps decision makers
to analyze the relative importance of considered elements in a decision making situation (Saaty,
1980; Saaty, 2000). AHP, compared to ANP, is found to be more useful due to its ease of
applicability and the lower number of pair-wise comparisons. Although decision making may be

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made by AHP itself, the MCDM process often achieves superior results by integrating AHP with
other decision support tools (Kang and Park, 2014; Mangla et al., 2016). Further, generating

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alternatives is a typical process due to human involvement. The VIKOR method, a compromise
solution method, has been identified as an effective decision tool to evaluate alternatives; it is
especially suitable in those circumstances when experts are not capable or do not know how to
communicate their ratings for the decision-making processes initially (Athawale et al., 2012;
Rostamzadeh et al., 2015). Regarding the evaluation of alternatives, TOPSIS may also be used;
however, a limited acceptance has been observed among practitioners in its application
(Harputlugil et al., 2011). In addition, the VIKOR method is very helpful when criteria are
conflicting in nature and it can determine weight stability intervals (Opricovic, 2011). Weight
stability analysis may also be conducted using additive MCDM methods, including outranking
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methods such as PROMETHEE (Mareschal et al., 1984; Olson, 2001). In VIKOR, the ranking
index is derived by considering both the maximum group utility and minimum individual regret
of the opponent (Jerry et al., 2011), factors which are not possible through PROMETHEE.
The reasons for combining AHPVIKOR (Parameshwaran et al., 2015; Prakash and Barua 2016)

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in this study include:

AHP can evaluate the decision problems linearly, while the VIKOR approach can
effectively evaluate experts preferences at an initial level of decision making.

This integration is important due to the capability of dual-disciplinary approaches of

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VIKOR to AHP.

This integration with multi-faceted decision analysis systems can deal with complex

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decision making processes more easily and efficiently.

This integrated approach may provide a sensible, logical, and effective solution in
decision making situations.

The integrated AHP-VIKOR approach is used by several researchers and professionals in

different disciplines, including robot selection (Parameshwaran et al., 2015), firms performance

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evaluation (Rezaie et al., 2014), conservation priority assessment (Pourebrahim et al., 2014), and
product development partner selection (Bykzkan and Grener, 2015). The detailed
procedures for AHP and VIKOR methods are given as follows.

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3.1 AHP: Step-wise procedure

The AHP approach is based on three basic principles: firstly, building a hierarchical structure;

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secondly, judging comparatively activities or variables; and thirdly, synthesizing the priorities
(Dey and Cheffi, 2013; Luthra et al., 2013). The use of AHP methodology has been reported in
several decision making situations in wide-ranging fields such as SCM, engineering/design,
education, management, energy, and so forth (Ordoobadi, 2010; Bao et al., 2013; Luthra et al.,
2015). The AHP methodology follows these steps (Saaty 1980; Govindan et al., 2014):
Step 1: Defining the research problem. The research problem is to evaluate the SSS criteria in
SCs. Thus, the SSS evaluation criteria are identified and a hierarchy prioritization model is
structured.

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Step 2: Constructing a questionnaire to collect the data. In this step, decision-makers are asked
to make pair-wise comparisons between SSS decision dimensions and criteria under each
dimension using a nine-point scale given by Saaty (1980).
Step 3: Determining of normalized weights for SSS dimensions and criteria. Based upon

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normalized weights, ranking for dimensions and criteria have been made.

Step 4: Evaluating the consistency of achieved solution. The consistency ratio (CR) is calculated
to ensure the consistency of pair-wise comparisons. It was calculated using mathematical
expressions given as CR = CI/RI (Madaan and Mangla, 2015; Luthra et al., 2016b). The CR

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value is used to assess the consistency and reliability of the decision makers.

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3.2 VIKOR: Step-wise procedure

MCDM methods are the most commonly used techniques for resolving conflict between various
engineering and management issues (Deng and Chan, 2011). VIKOR method is a compromise
ranking technique to optimize the decision making process. VIKOR technique focuses on
ranking and choosing from a given set of alternatives in the existence of contradictory criteria
(Opricovic, 2011; Kang and Park, 2014). Therefore, the VIKOR method is found as an

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appropriate and very useful decision approach (Akman, 2015; Sivakumar et al., 2015). The
VIKOR method has the following steps (Rostamzadeh et al., 2015):
Step 1: Assigning rate values for the linguistic variables in relation to sustainable supplier
alternatives. The linguistic scale used to develop pair-wise comparisons among alternatives and

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criteria is given in Table 4. Based on this, the matrix for alternatives with respect to each
criterion was constructed.

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Table 4: The linguistic scale used to develop pair-wise comparisons

Importance Intensity
1
2
3
4
5

Linguistic Variables
Equally Important (EI)
Moderately Important (MI)
Strongly Important (SI)
Very Strongly Important (VSI)
Extremely Important (EXI)

Step 2: Developing a decision matrix. The aggregated ratings of sustainable supplier

(alternatives) are derived from experts ratings, and a decision matrix is formed by Eq. (1).

A = 
A

(1)

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Step 3: Determining the best f* and the worst f values of the all criterion ratings, b = 1, 2,n.
-

The best f* and the worst f values of the all criterion ratings are given in Eq. (2) and Eq. (3).
f* = Max (f  )

(2)

f = Min (f  )

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(3)

Where f* is the positive ideal solution for the bth criterion and f is the negative ideal solution for

the bth criterion.

Step 4: Calculating the values ofS , and R for a= 1, 2,m using Eqs. (4-5).


* -

R = Max W  *

 -

SC

 -



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* -

S = 
W  *

(4)
(5)

Where S indicates the rate of distance of ath alternative to the positive ideal solution, i.e.

maximum group utility of majority; R indicates the rate of distance of ath alternative to the
negative ideal solution, i.e. minimum individual regret of opponent in the compromise
programming method which helps to determine compromise solutions based on negotiated

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preferences of decision makers; and W indicates the weight of the each criterion calculated by
AHP.

Step 5: Determining the aggregating index, i.e. final compromise solution Q for a= 1, 2,. m

using Eq. (6) and the alternative that has minimum Q is the best alternative. This compromise
Q = v

 -*
- -*

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solution must be stable within a decision-making process.

+(1-v)

*
-- *

(6)

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Where S - = Max S S - , S* = Min S S* , R- = Max R R- ,R* = Min R R* and the solutions

obtained from max S show the maximum group majority and the solutions obtained from min
R demonstrate the minimum individual regret of the alternative. The weight of the course of

action or maximum set utility is represented by # and (1 #) indicates the weight of the
individual regret. In this case the value of v is taken as 0.5.
Step 6: Ranking the alternatives on the basis of Q values.
Step 7: Finding the minimum value of Q.
The minimum value of Q is suggested as the optimal compromise solution when these two
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conditions are satisfied concurrently. The conditions are given as:

Condition 1: If Q (A(2)) - Q(A(1)) 1/n -1 then the alternative Q (A(1)) demonstrates an
acceptable advantage where A(1) and A(1) are the alternatives and n is the number of
alternatives.
best ranked in S andR .

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Condition 2: The alternative Q (A (1)) is constant and stable in decision making when it is also

Step 8: Distinguishing the best alternative by selecting (A (m)) as a best compromise solution

represents the selection alternatives i.e. S1, S2....S5.

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4. Proposed Research Framework

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with the minimum value of Q with regards to the above-mentioned conditionswhere m

The proposed research framework for evaluation of supplier selection for sustainability in supply
chain, based on the integrated AHP-VIKOR approach, consists of three phases as shown in
Fig.1. The proposed framework can assist managers and decision analysts in terms of:
Understanding and determining the proposed criteria for supplier selection for

i)

ii)

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sustainability.

Determining the relative importance weights of listed supplier selection criteria for
sustainability.

iii)

Ranking the suppliers and selecting the most efficient sustainable supplier among

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alternatives.

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The other details for the proposed framework are given in the subsequent sub-sections.

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Phase 1

Formation of a decision group (Experts from Industry

and Academia)

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Recognize and select the criteria and sub-criteria for

analysis (SSS criteria and sub-criteria)
Literature
Survey

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Finalize the alternatives (Sustainable suppliers to be

selected from list)

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Establishing hierarchical structure

Approval of hierarchical
structure?

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Phase 2:
AHP application

No

Computing the criteria and sub-criteria weights

No

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Approval of criteria
weights?

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Phase 3:
VIKOR application

Yes

Evaluating the alternatives

Distinguish the final rank and select the most efficient

sustainable supplier among alternatives

Fig. 1. Proposed research framework to evaluate supplier selection for sustainability in supply
chain
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4.1 Phase I: Identify and finalize the sustainable supplier related evaluation criteria, subcriteria and alternatives
The identification and finalization of the sustainable supplier related criteria, sub-criteria and

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alternatives is the first phase of the proposed framework. These evaluation criteria should cover
the companys requirements, priorities, and operating strategies. To fulfill this objective, a
decision group is formed at the case company. The sustainable supplier-related evaluation
criteria have been compiled through relevant literature and input from experts. Further, these

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identified 22 criteria have been categorized into dimensions of sustainability with the help of
brainstorming sessions with experts. After finalizing the SSS dimensions, criteria, and

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alternatives, a hierarchical structural is framed.

4.2 Phase II: AHP Application: Compute sustainable supplier related evaluation criteria,
sub-criteria and dimensions weights

Once the hierarchical structure is approved, the decision group is asked to assign ratings to
calculate the weights of the SSS main dimensions, criteria, and sub-criteria by using AHP. The

obtained.

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needed pair-wise comparisons were made using experts judgments and, hence, weights are

4.3 Phase III: VIKOR Application: Select the most efficient sustainable suppliers among

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alternatives

After approval of SSS dimensions and criteria weights, the decision group is asked for ratings to

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select the most efficient sustainable supplier.As a result, the alternatives are evaluated and the
most efficient sustainable supplier is selected among alternatives by using the VIKOR technique.

5. An Application Example of Proposed Work

To show the application of the proposed framework, this study identifies an automotive company
in India. The company under study (named here as XYZ) was established in 1985. At present,
the company has annual revenues of 1000 million rupees. It is a market leader in India and has a
strong presence in the Asia Pacific region. The company under study is one of the world's largest
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manufacturers of two-wheelers (various models of scooters and bikes) and distribution of their
spare parts. The case company manufacturers are part of a project called Green Supply Chain
Management.
The case company has the desire to develop a green and sustainability-focused culture through

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sustainable supplier selection and evaluation program. Basically, the case company seeks to
select and evaluate sustainability through supplier selection in its supply chain. It also wishes to
reduce its environmental and societal business impact. The company managers were facing some
difficulties in selecting sustainable suppliers and in managing related practices in the supply

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chain. Thus, the company is seeking to adopt a comprehensive approach for understanding the
SSS evaluation criteria, which will be helpful in implementing sustainability in their business.

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The managers also wish to prioritize the SSS evaluation criteria and to decide on the most
efficient sustainable supplier from alternatives according to their priority. Thus, to help the
managers, the AHP-VIKOR integrated framework is applied; the other details are given in the
following sub-sections.

5.1 Phase 1: Identify and finalize the sustainable supplier related evaluation criteria, sub-

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criteria, and alternatives

In this phase, a decision group was formed that consists of five experts (two academicians and
three senior level managers from the case companys Purchasing, Production, and Marketing
departments). The chosen experts were proficient in decision-making and have a working

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experience of almost twelve years. The inputs of the decision group and a literature analysis are
used to select the three main dimensions and 22 evaluation criteria of SSS for sustainability in

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supply chain. Further, five suppliers (S1, S2, S3, S4, and S5) were available as alternatives (from
data available from the company) to select the most efficient sustainable supplier among them by
using experts inputs. Then, a structural hierarchy is formed as shown in Fig. 2.

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Evaluating the Supplier Selection for Sustainability in Supply Chain

Profit on Product (PR)

Quality of Product
(QP)

Flexibility (FL)

Environment
Management Systems
(EM)
Green Design and
purchasing (GDP)

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Price of Product (PP)

Social
Dimension (SOC)

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Environmental
Dimension (ENV)

Green
Manufacturing (GM)

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Economic
Dimension (ECO)

Occupational
Health & Safety
Systems (OS)

The interests &

rights of
employees (IE)

Green
Management (GRM)

Technological and
Financial Capability
(TC)

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Production Facilities
and Capacity (PC)

Green
Packing & Labeling
(GL)

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Delivery and Service

of Product (DP)

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Lead Time Required

(LR)
Transportation Cost
(TRC)

S1

The rights of
stakeholders (RS)

Waste Management &

Pollution Prevention
(WM)

Environmental Costs
(EC)

Information
Disclosure (IS)

Environmental
competencies (ENC)
Green R & D (GRD)

S2

S3

S4

S5

Fig. 2. Framework of evaluation criteria of SSS for Indian automobile industry understudy
S1-S5: Sustainable suppliers alternatives 1-5 (data available from the case company)
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Fig. 2 includes four levels: goal, dimensions of evaluation criteria, sub-criteria, and alternatives
for determining the most efficient sustainable supplier. The primary goal for the present research
is to evaluate the sustainable supplier selection. In the second level, three dimensions of criteria
(Economic, Environmental, and Social) are identified and have been checked for inclusion in the

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hierarchy. In the next level, criteria under each dimension have been checked. In the last level, a
selection of the most efficient sustainable supplier among alternatives (five sustainable suppliers)
in supply chain has been made.

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5.2 Phase II: AHP Application: Compute sustainable supplier related evaluation criteria,
sub-criteria, and dimensions weights

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Here, the decision group assigned the pair-wise comparisons for the dimensions and criteria of
SSS. The experts judgments in terms of pair-wise comparison matrices were aggregated using
geometric mean method (Saaty, 2008). Thus, the weights of each SSS dimension and respective
criteria are determined (see Table 5).

Table 5: The priority weights and ranking of main dimensions of sustainable selection for
sustainability

Pair-wise comparisons
Eco
Env
Soc
1.00
1.00
2.00
1.00
1.00
3.00
0.5
0.333
1.00

Importance Ranking
weights
0.3874
2
0.4434
1
0.1692
3

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Dimensions of SS
towards sustainability
Economic (Eco)
Environment (Env)
Social (Soc)

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Maximum Eigen Value= 3.0183; C.I. =0.00915

From the analytical results shown in Table 5, Environment dimension (0.4434) is found as the

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most highly important criterion, followed by Economic dimension (0.3874), and then Social
dimension (0.1692). In the next level, all criteria are ranked for each dimension. Priority weights
of criteria to select supplier towards sustainability have been summarized in Table 6.
Table 6: The priority weights and ranking of the sustainable selection criteria for sustainability
Dimension of
SSS

Criteria of
SSS

Relative
weights

Relative
ranking

Global
weights

Global
ranking

Eco

PP
PR
QP
FL

0.2065
0.1251
0.2147
0.0986

2nd
4th
1st
5th

0.0800
0.0485
0.0832
0.0382

3rd
10th
2nd
12th

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0.0162
0.0178
0.0564
0.0193
0.0279
0.0686
0.0253
0.0334
0.0378
0.0262
0.0424
0.0873
0.0707
0.0517
0.0709
0.0209
0.0489
0.0284

22th
21th
7th
20th
16th
6th
18th
14th
13th
17th
11th
1st
5th
8th
4th
19th
9th
15th

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9th
8th
3rd
7th
6th
3rd
9th
7th
6th
8th
5th
1st
2nd
4th
1st
4th
2nd
3rd

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Soc

0.0419
0.0459
0.1456
0.0498
0.0720
0.1548
0.0570
0.0753
0.0853
0.0592
0.0956
0.1969
0.1594
0.1165
0.4197
0.1233
0.2892
0.1678

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Env

TC
PC
DP
LR
TRC
EM
GDP
GM
GRM
GL
WM
EC
ENC
GRD
OS
IE
RS
IS

Table 6 shows that Quality of product (0.2147) has been found as the most important criterion
under economic dimension, followed by Price of product (0.2065), Delivery and service of
Product (0.1456), Profit of the product (0.1251), Flexibility (0.0986), Transportation cost

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(0.0720), Lead time required (0.0498), Production facilities and capacity (0.0459), and
Technological and financial capability (0.0419). Environmental costs (0.1969) has been
ranked as the most important criterion and Green design and purchasing (0.0570) as the least
important criterion under environment dimension. Occupational health & safety systems

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(0.419719) has been identified as the most important criterion and The interests & rights of
employees as least important criterion in social dimension.

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The consistency ratio values are well below the acceptable range for all criteria ensuring
decision-maker consistency (Kumar et al., 2015).

5.3 Phase III: VIKOR application: Select the most efficient sustainable supplier among
alternatives

The most efficient sustainable supplier among alternatives is selected using VIKOR analysis.
Evaluation matrix of the alternatives is constructed by using a scale mentioned in Table 4. Here,
only one experts evaluation matrix is given due to space constraints (see Table 7).

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Table 7: Evaluation matrix of the ratings for the alternatives (Expert 1)

PP

PR

QP

IE

RS

IS

2
1
2
4
2

4
3
1
4
1

3
2
4
5
1

..
..
..
..
..

..
..
..
..
..

3
3
1
2
2

2
1
2
1
3

2
4
2
3
3

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Criteria
Alternatives
S1
S2
S3
S4
S5

Next, the aggregate matrix for the weights of the alternatives is formed using Eq. (1) and shown
-

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in Table 8. The best f* and the worst f values of all criteria ratings are determined by using Eqs.
(2-3).

PP

PR

2.5
1.75
3.5
1.75
3
3.5
1.75

2.75
2
3.25
2.5
3.66
3.66
2

QP

IE

RS

IS

2.25
2
4.25
2.5
2.33
4.25
2

..
..
..
..
..

..
..
..
..
..

2.5
3
2.5
2
3.66
3.66
2

2
2.25
1.5
2.75
3
3
1.5

2.75
4.25
2.75
2.5
3.33
4.25
2.5

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Sub-criteria
Alternatives
S1
S2
S3
S4
S5
&'
&)
'

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Table 8: Aggregate decision matrix ratings for the alternatives

Where S = S* , R = R * and Q = Qa. The values of S and R are calculated using Eqs. (4 - 5) and
are given in Table 9. To calculate the values of S and R, the weights of each criterion are

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multiplied (as calculated by AHP). Now the values of Q for all alternatives are calculated by
considering the weight of maximum group utilityv = 0.5 , which is also given in Table 9.

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Table 9: Values of S, R and Q for the alternatives

Alternatives
S1
S2
S3
S4
S5

S
0.5446
0.7428
0.2975
0.6255
0.4264
)
0 = 0.7428
0 = 0.2975

R
0.074
0.0873
0.0564
0.08
0.0709
5 ) = 0.0873
5 = 0.0564

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0.5615
1
0
0.7501
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The final ranking of the alternatives based on S, R, and Q in descending order is further
evaluated for finalization. According to Q values (final compromise solution), the selection of
the most efficient sustainable suppliers has been done and is depicted in Table 10.
Table 10: Ranking of the alternatives according to values of S, R, and Q
Rank
3
5
1
4
2

R
0.074
0.0873
0.0564
0.08
0.0709

Rank
3
5
1
4
2

Q
0.5615
1
0
0.7501
0.3789

Rank
3
5
1
4
2

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S
0.5446
0.7428
0.2975
0.6255
0.4264

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Alternatives
S1
S2
S3
S4
S5

Since S represents the positive ideal solution, R indicates the negative ideal solution, and Q

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represents the optimal compromise solution, the decision making can be done by arranging
optimal compromise solution values in descending order. Based on the crisp Q index values, the
ranking of the alternatives in descending order is determined as S3 > S5 > S1 > S4 > S2. The
most efficient alternative is found to be sustainable supplier 3 (i.e., S3). Also, both C1 and C2
conditions are satisfied, which means Q (S3)-Q (S2) 1/5-1 and, similarly, S3 is highly ranked

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by R and S, which ensures the stability of decision making.

6. Discussions of Findings

From Table 5, the ranking of main dimensions of SSS evaluation criteria is given as: Env/

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Eco/Soc. In addition, the ranking of the SSS evaluation criteria with reference to their main
dimensions is also computed (see Table 5). The global ranking for the criteria, based on their

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respective global weights, is also determined. The global weights for the criteria are calculated
by multiplying their relative weights with importance weights of their respective dimension.
Based on Table 5, Environmental costs ranks first with the highest weight value (0.0873) and
Technological and financial capability occupies the last rank with lowest weight value (0.0162)
in all evaluation criteria. Environmental costs, Quality of product, Price of product,
Occupational health & safety systems, and Environmental competencies criteria have been
ranked as top five criteria to SSS in supply chain.
The Environmental (Env) dimension holds first rank, and it is clear that environmental
dimensions stand as one of the most vital aspects in todays business scenario. This dimension
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deals with shielding the environment from the hazards caused by industrialization and other
technological advancements. There are nine criteria exhibited in this grouping. Among them,
Environmental costs (EC) obtains the highest rank. It suggests that sustainable supplier selection
identifies the maximum potential suppliers for meeting the case companys requirements at an

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acceptable cost (Bykzkan and ifi, 2011). The criterion of Environmental competency
(ENC) is ranked after EC. This criterion establishes that a significant need is recognized for the
case company to manage their suppliers environmental competencies in improving sustainable
production (Lee et al., 2009). Bykzkan and ifi (2011) reported that environmental

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competencies criteria differentiate from traditional supplier evaluation system. The Environment
management system (EMS) comes next in accordance with the ranking order. The adoption of

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EMS may help in reducing the ecological impacts in the automotive company supply chain
(Luthra et al., 2014). Next is Green R & D and innovation (GRD). It means that green R & D and
innovation will help the case company to develop new or customized techniques, practices,
processes, systems, and products to reduce environmental pollution (De Marchi, 2012). Waste
Management & Pollution Prevention (WM) comes after GRD according to their rank order,
which will help the case company managers to initiate waste management and pollution

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prevention activities (recycling, reuse and redesign manufacturing processes) during

manufacturing. Then, Green Management (GRM) appears next as per the ranking list. Green
management will help the case organization to enhance environmental and economic
performances in the supply chain (Zhu et al., 2012). Next is the Green Manufacturing (GM)

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criterion, followed by Green Packing & Labeling (GL) in the ranking list. GM will help the case
company to enhance their financial benefits by effective use of materials, reducing waste and

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reducing pollution etc. (Govindan et al., 2015b). Similarly, green packing & labeling will help
the case company to make green marketing strategies and also to increase their competitiveness
(Mangla et al., 2013). Finally, Green Design and purchasing criteria rank last in the list.
The Economic (Eco) dimension holds second rank in the priority list. Economic dimension is a
basic motivation for any organization because no supply chain will exist in the long run without
realizing economic benefits (Muduli and Barve, 2013). This dimension has nine criteria. Quality
of product (QP) criterion attains the utmost importance. Conventionally, supplier selection in
SCM was based on a suppliers ability to meet delivery schedules, to offer lower prices, better
services, and quality requirements (Hsu and Hu, 2009). However, in contemporary management,
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environmental and social factors must also be considered with conventional economic criteria for
a sustainable supplier working in an automotive supply chain context. Following this, there is the
Price of product (PP) criterion in the list. An organization desires to choose suppliers for lower
product prices for their sustainability actions with competitive advantages (Bykzkan and

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ifi, 2011; Kannan et al., 2014). The next criterion is Delivery and service of product (DP),
which shows that delivery and after sale service are important criteria for SSS. The Profit of the
product (PR) criterion comes next in terms of priority. Flexibility (FL) plays a great role; it
obtains the next rank after PR. The next ranked criterion is Transportation cost (TRC), because

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clearly transportation costs play a significant role in SSS. Further, Lead time required (LR)
follows TRC, and it depicts that the case company needs to manage suppliers so that they are

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provided with high quality, low cost, and short lead times (Falatoonitoosi et al., 2014).
Production facilities and capacity (PC) comes next in the ranking list. Lastly, Technological and
financial capability (TC) criterion completes the ranking sequence.

The Social (S) dimension holds third place in the ranking list. Human beings are depleting
resources and causing damage to nature to satisfy their own needs. There are four criteria within
this particular dimension. The Occupational health & safety system (OS) criterion is ranked first.

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The rights of stakeholders (RS) appears next. Employment compensation, health and safety
committees at work, and associating with the local community and NGOs are a few of the social
criteria that must be considered in SSS (Govindan et al., 2013). The next criterion, Information
Disclosure (IS), indicates that the case company is looking for ways to improve the social

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impacts of their suppliers on GHG emissions, the materials, processes, and techniques used, and
toxins released during production. Monitoring these activities are important steps towards

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reducing harmful environmental and social effects during production (Hsu et al., 2013) and
sustainable development in a supply chain (Gualandris et al., 2015). The next place of
importance is attained by The interests & rights of employees (IE) criterion. It is necessary for
the case company to focus on employees needs in order to achieve success in the long term
(Muduli and Barve, 2013).

It is difficult to determine which of the evaluation criteria for SSS is more important, but
evaluating them through the suggested framework makes the supplier selection process more
logical. AHP estimates the ranks of the criteria, and VIKOR provides the most efficient
sustainable supplier. According to the VIKOR method, the ranking of the sustainable supplier in
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descending order is S3 - S5 - S1 - S4 - S2. By using this proposed integrated framework, the

automotive supply chain decision makers can evaluate supplier selection decisions to achieve

6.1 Managerial and practical implications of the research

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sustainability in business.

The research findings were discussed with experts to analyze the issues related to sustainabilityfocused supplier selection initiatives. They seem to show good agreement with the findings. This
study has highlighted several challenges/barriers and benefits of applying SSS in the supply

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chain. In this sense, this study has several beneficial managerial and practical implications, as
follows:

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Revealing the challenges/barriers in applying and selecting the supplier selection for
sustainability. This study reveals several challenges in selecting and evaluating SSS
criteria from the organizational viewpoints. Sustainable supplier decisions have become
necessary as organizations increasingly compete on environmental, economic, and social
supply chain capabilities. To fulfill this, case company managers need to understand
various challenges/barriers related to implement sustainability-focused supplier

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assessment systems in the supply chain. The present study is an initial attempt that has
considered ecological, economic, and social criteria to evaluate SSS and their
implications in supply chains. Based on quantitative and qualitative data, important
criteria and dimensions of criteria related to SSS have been recognized. The proper

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understanding of these criteria and dimensions can help in managing the

challenges/barriers in developing sustainability-focused supplier selection criteria and
evaluation decisions. The various criteria listed in the study are Price, Profit, and Quality

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of the product, Technological & financial capability, and Occupational health & safety
systems. All these criteria are helpful in managing various challenges among
organizations in developing sustainability aspects in supplier related decisions. The
present research work plays a vital role in understanding various criteria and their
rankings to select the most efficient sustainable supplier from the industrial context. The
proposed framework may help the automotive case company managers/practitioners and
policymakers to achieve better performance results and to prepare courses of action

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regarding the elimination of possible barriers/challenges for successful decisions about

sustainable supplier decisions in the organization.

Revealing the benefits in applying and selecting the supplier selection for
sustainability. The study offers a hierarchical model for SSS and evaluation as shown in

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Fig. 2. This paper has also presented a benchmarking framework (Fig. 1) with a focus on
sustainable initiatives to make complicated decisions to select suppliers to achieve
economic, environmental, as well as social benefits. In that way, it is recommended that
automotive supply chain professionals, practitioners, and related business organizations

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may use the suggested model of synthesizing judgments to solve the sustainable supplier
selection or evaluation problems. Further, from the case companys point of view, the

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framework proposed in the study may provide a scientific means to improve the
complicated options of selection and to develop sustainable products and processes as
well. The other important benefit of this work is the development of SSS evaluation
criteria using literature and experts feedback. These criteria will help automobile case
company managers to select and evaluate suppliers for sustainability in the supply chain,

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while still remaining competitive in the market.

7. Sensitivity analysis

Sensitivity analysis helps in testing the stability of the proposed framework. Sensitivity analysis

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also assists in determining the changes in final ranking of the alternatives on a slight variation in
the criteria relative weights (Prakash and Barua, 2016). In this work, the sustainable supplier

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evaluation dimension and criteria weights are computed using human inputs. Thus, we suggest
testing the final ranking of the alternatives by assigning different weights of the criteria. This
also helps to check the consistency in decision making. Findings of the sensitivity analysis
suggest that S3 has the highest priority among all alternatives when # varies from 0.1 to 1.0; the

corresponding ranking order for the sustainable supplier alternatives is S3 > S5 > S1 > S4 > S2
(see Table 11). The ranking remains consistent in the sensitivity run and indicates stability of the
alternatives ranking in this study.

Table 11: Ranking of alternatives in sensitivity runs when # varies from 0.1 to 1.0
Alternatives

9 = :. ;

Rank

9 = :. <

Rank

9 = :. =

27

Rank

9 = :. >

Rank

9 = :. ?

Rank

ACCEPTED MANUSCRIPT

Alternatives

9 = :. @

3
5
1
4
2

0.5655
1.0000
0.0000
0.7583
0.4326

Rank

0.5601
1.0000
0.0000
0.7474
0.3610

3
5
1
4
2

9 = :. A

0.5641
1.0000
0.0000
0.7556
0.4147

3
5
1
4
2

9 = :. B

Rank

0.5588
1.0000
0.0000
0.7447
0.3431

3
5
1
4
2

3
5
1
4
2
Rank

0.5575
1.0000
0.0000
0.7419
0.3252

3
5
1
4
2

0.5628
1.0000
0.0000
0.7528
0.3968

9 = :. C

3
5
1
4
2
Rank

0.5561
1.0000
0.0000
0.7392
0.3073

3
5
1
4
2

0.5615
1.0000
0.0000
0.7501
0.3789

9 = ;. :

0.5548
1.0000
0.0000
0.7365
0.2894

3
5
1
4
2
Rank

3
5
1
4
2

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S1
S2
S3
S4
S5

0.5668
1.0000
0.0000
0.7610
0.4505

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S1
S2
S3
S4
S5

From Table 11, suppliers S3 and S5 are highly ranked and may obtain the choices of selection by
the decision makers (see Fig. 3). At the end, the sensitivity analysis may be meaningful to

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evaluate the alternatives for sustainable supplier selection in supply chains.

0.1

0.2

S1

3
2

0.9

S2

0.3

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S3

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0.8

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C

0.7

0.4

S4

S5
0.5

0.6

Fig. 3. Results of sensitivity analysis

8. Conclusions, Limitations, and Future Work

Due to an increased awareness of ecological protection and resulting stringent legislations, the
adoption of sustainable practices has become an important consideration for business
organizations with regard to their supply chains. These considerations can help them to
determine their growth and sustainability over the long term. Supplier selection is very important
28

ACCEPTED MANUSCRIPT

in improving supply chain performance. Thus, a systematic and sustainability focused evaluation
system for supplier selection is needed among business organizations.
This research work provides a scientific model that provides comprehensive insights on supplier
selection for sustainability using an integrated AHP-VIKOR approach. The AHP technique has

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been utilized for evaluating the SSS criteria relative importance weights and the VIKOR
technique has been used for selecting the most efficient sustainable supplier. The SSS evaluation
criteria weights obtained through AHP have been utilized as input in VIKOR for selecting best
alternative sustainable supplier among the alternatives.

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From managerial perspectives, the credibility of the proposed integrated framework is shown by
taking a case study of an Indian automobile industry. Initially, 22 SSS evaluation criteria and

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three main dimensions of sustainability, including economic, environmental, and social, were
identified from an extensive literature review and experts inputs. The AHP method finds that
Environmental dimension achieves maximum priority weight. Further, the overall ranking of
all criteria has also been made by assigning global weights. Environmental costs received the
highest rank and VIKOR results indicated the ranking of sustainable suppliers in descending
order as S3 > S5 > S1 > S4 > S2.A sensitivity analysis was also conducted to test the proposed

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framework robustness.

This work has some limitations as well. 22 important supplier selection criteria for sustainability
in supply chain have been identified and ranked. Other criteria and dimensions have not been
identified. The AHP and VIKOR based framework is used to evaluate SSS criteria and to select

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the most efficient sustainable supplier among alternatives. The necessary computations were
performed by taking the experts inputs into consideration. Hence, it is suggested to perform

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these computations in a careful manner. The study findings are based on a single case study;
thus, the findings cannot be generalized. The fuzziness in the data has also not been considered
in this work; therefore, a fuzzy based decision approach may be applied in future work. Further,
different techniques and MCDM tools (such as ISM, TISM, and DEMATEL) may be applied to
analyze the interrelationships and strength of relationships between or among SSS in the supply
chain. In future studies, TOPSIS and PROMETHEE may also be used for selecting suppliers
towards sustainability and those results may be compared with the present study. Finally, an
Interpretive Ranking Process (IRP) may also be applied to rank the SSS evaluation criteria
relating to performance measures in supply chains.
29

ACCEPTED MANUSCRIPT

Acknowledgements
The authors are very thankful to the Editors and anonymous reviewers for their constructive
suggestions/critical remarks to improve the quality of the paper; their help has undoubtedly

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increased the understanding of the authors on the subject.

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