A stochastic fuzzy multi-criteria group decision-making for sustainable vendor selection in Indian petroleum refining sector

Abstract

PurposeThis paper aims to select key criteria for sustainable vendor assessment and spare-parts supplies in the Indian petroleum refining sector using stochastic fuzzy technique for order of preference by similarity to ideal solution (SFTOPSIS).Design/methodology/approachThe criteria for sustainable vendor evaluation and selection are identified from the review of the literature and further; it is finalized using the Delphi method. Eight supply chain (SC) experts from the Indian petro refining sector were identified as having more than five years of experience and agreed to participate in this study (known as decision-makers (DM)). Five vendors supplying spare-parts are shortlisted from the market with the discussion and consent of procurement experts from petroleum refineries. Subsequently, criteria and vendors are rated based on relative importance in linguistic terms from the group of eight DMs. As ratings involve uncertainties in the decision-making, the SFTOPSIS method is applied to determine criteria weight and vendor ranking at a distinct significance level (α). The ranking of the vendors is obtained for sustainable supply of spare-parts in the Indian petro refining sector using the SFTOPSIS method.FindingsThe ranking of sustainable vendors is obtained through the integrated application of the fuzzy and stochastic approach to capture the uncertainties in the ratings of DMs. The sensitivity analysis is carried out at distinct confidence limits of a normal distribution to obtain a robust ranking of the vendors. In this paper, a case application of SFTOPSIS in the Indian petro refining sector is presented in which key criteria and the vendor ranking are found to be changing with confidence limit for sustainable vendor evaluation.Practical implicationsThe fuzziness and randomness in relative ratings collects from a group of DMs are taken in the proposed methodology. The distinct approaches are compared with changing significance-level under stochastic, fuzzy and deterministic TOPSIS to acquire robustness in the ranking. The proposed SFTOPSIS model can be useful to practitioners from the petroleum sector.Originality/valueThe originality of the paper contributes to an application of the SFTOPSIS method that is the extension of FTOPSIS in the petro refining sector of a developing country. The sensitivity analysis with distinct significance-level shows the uncertainties in the collected ratings from the DMs that supports robustness in the ranking. It might be helpful for SC professionals from the petro refining sector, who assess the rank of the vendors at different confidence limits for sustainable supply of spare-parts. Further research in the petroleum industry from emerging economies needs to be undertaken to broaden its scope and applicability.

An integrated QFD and fuzzy TOPSIS approach for supplier evaluation and selection

“…Numerous authors have applied the techniques of fuzzy mathematical programming. The fuzzy multi-objective linear model suggested by Akhtar and Ahmad (2022)…”

“…The multi-criteria decision-making (MCDM) methods have been applied by many researchers to deal with complex decision-making problems in the area of supply chain management, logistics, manufacturing systems, petroleum refining sector, (Hwang and Yoon, 1981; Chen and Hwang, 1992; Akhtar and Ahmad, 2022) etc. MCDM approaches have been used to deal with the selection most suitable alternative(s) from a set of alternatives and ranking of these alternatives (Yazdani et al ., 2017).…”

A novel stochastic fuzzy decision model for agile and sustainable global manufacturing outsourcing partner selection in footwear industry

“…Chen and Hung (2010) For sustainable supplier selection, various method and techniques are used such as a Best-Worst Method (BWM), Mixed-Integer Linear Programming (MILP) and revised multi-choice goal programming (Cheraghalipour and Farsad, 2018); AHP and TOPSIS (Mohammed et al, 2018); two-stage DEA (Zarbakhshnia and Jaghdani, 2018); F-AHP and F-VIKOR (Awasthi et al, 2018); F-MOORA and Failure Modes and Effects Analysis (Arabsheybani et al, 2018); Intuitionistic F-COPRAS method for green supplier selection. Akhtar and Ahmad (2021) applied SF-TOPSIS for sustainable vendor selection for spare parts supplies in the Indian petroleum refining sector.…”

“…Group decision-making also involves randomness and variability which can be resolved with probability theory and standard normal distribution. Such variability is not accounted for in any deterministic or fuzzy model whereas stochastic value accounts for the variability and randomness of qualitative judgement by group of DMs (Akhtar and Ahmad, 2021). e X ij k : fuzzy performance value of ith alternative with respect to jth criterion by kth decision-maker.…”

“…Kumari and Mishra (2020) introduced Intuitionistic F-Entropy and Intuitionistic Fuzzy Complex Proportional Assessment (F-COPRAS) method for green supplier selection. Akhtar and Ahmad (2021) applied SF-TOPSIS for sustainable vendor selection for spare parts supplies in the Indian petroleum refining sector.…”