An Integrated AHP-QFD-Based Compromise Ranking Model for Sustainable Supplier Selection

Abstract

Sustainability in industrial organizations has become a predominant concept in the 21st century due to environmental regulations, economic importance, and social obligations. In this context, sustainable supplier selection plays an epochal role for taking strategic business decisions. So, a systematic approach is required to deal with the sustainable factors. By integrating the three pillars of sustainability, namely economic, environmental, and social factors, this chapter presents an integrated model for supplier selection from a sustainability perspective. The proposed framework combines analytic hierarchy process (AHP) and quality function deployment (QFD) methods to deal with the sustainable criteria. Finally, suppliers are ranked using VIse Kriterijumska Optimizacija kompromisno Resenja (VIKOR) method. The proposed framework is used to analyze a case study of a dairy company, but it can also be implemented for sustainable supplier selection in any industries. The study brings an artefact for managers to effectively analyze suppliers with the integrated decision-making model.