Application of multi-attribute decision-making method based on fuzzy influence diagram in green supplier selection

Abstract

The external business environment exhibits many uncertainties with the continuing changes in technological progress, political environment, and consumption behavior. This has made companies recognize the significance of addressing environmental issues to remain competitive in the modern global market. Thus, much attention is given to the supply chain to ensure environmental factors are considered during supplier selection. However, the process of selecting the right suppliers to enable green supply chain management is proving difficult. This paper presents a novel approach using fuzzy influence diagrams to identify key green supplier selection criteria, combined with multi-criteria decision making to evaluate alternatives. The fuzzy influence diagram derives priority supplier capabilities by modeling interrelationships and uncertainties. The multi-criteria technique then ranks suppliers based on prospect values. A case study of furniture manufacturer supplier selection validates the proposed method. Compared to existing models, this integrated approach reduces subjective weight bias and improves handling of complex criteria dependencies and uncertainties. The results demonstrate state-of-the-art performance in identifying ideal green suppliers. This technique can enhance sustainability efforts across supply chains.