Green supplier selection and order allocation using AHPSAW and goal programming

Teguh Baroto1a), Dana Marsetiya Utama1,b), M. Faisal Ibrahim2)
1Department of Industrial Engineering, Universitas Muhammadiyah Malang, Malang, Indonesia
2Department of Logistics Engineering, Semen Indonesia International University, Indonesia
Corresponding author: a)teguh@umm.ac.id
a)dana@umm.ac.id

Abstract

In the supply chain, environmental aspects become a concern for stakeholders. One of the strategic decisions in the supply chain field is Green Supplier Selection and Order Allocation (GSSOA). This study proposes the Analytical Hierarchy Process (AHP) and simple additive weight (SAW) and Goal Programming procedures in addressing the GSSOA problem. The five criteria and 13 sub-criteria are utilized in applied to plastic manufacturing companies. Based on AHP, the results indicate that quality criteria present a higher level of importance than cost, delivery, service, and environment. Furthermore, the suitability of the material with specifications (QU1) serves as the sub-criteria with the highest weight. The result of the preference assessment with SAW further indicates that supplier 2 presents the highest preference. The application of goal programming is advantageous to determine the optimal order allocation. The results depict that suppliers 2 and 3 are eligible to supply 150 each to fulfill demand

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