Sustainable supply chain partner selection and order allocation: A hybrid fuzzy PL-TODIM based MCGDM approach

Abstract

Sustainability, as a trend of social development and the embodiment of corporate social responsibility, has begun to receive more attention. To achieve this goal, sustainable supplier selection (SSS) and order allocation (OA) are seen as the crucial activities in corporate management. In the process of SSS, the psychological behavior of decision-makers (DMs) could play a critical role in the evaluation results. Therefore, introducing it into the decision-making process may lead to decision in line with the actual situation. In the uncertain multi-criteria group decision-making (MCGDM) problem described by probability linguistic term sets (PLTS), the DMs can evaluate the criteria of each supplier based on his own preference and hesitation, which is useful to avoid the loss of information. For this reason, this study develops a novel multi-criteria group decision-making combined with fuzzy multi-objective optimization (MCGDM-FMOO) model for SSS/OA problems by considering the triple bottom line (TBL) in which includes economic, environmental and social factors. The proposed method includes four stages. (1) the best-worst method (BWM) and entropy weight method are utilized to assign the weights of criteria to obtain the comprehensive weight. According to the output weights, the an acronym for interactive and multi-criteria decision-making in Portugese (TODIM) approach is applied to rank the suppliers under PLTS environment; (2) a FMOO model that can effectively deal with uncertainties and dynamic nature of parameter is formulated for allocating optimal order quantities; (3) two novel approaches are utilized to solve the FMOO model in order to obtain the richer Pareto frontier; and (4) the final OA solution is achieved by technique for order preference by similarity to ideal solution (TOPSIS) method. Finally, the validity and practicability of proposed MCGDM-FMOO model are verified by an example and comparative analysis with other classical MCGDM methods.