An Integrated Kano Model, Fuzzy Analytical Hierarchy Process, and Decision Matrix for Sustainable Supplier Selection in Palm Oil Industries Indonesia, a Case Study

Abstract

Industries have to integrate environmental, social, and economic aspects into their supply chain management to achieve sustainability. Hence, the industry needs to take appropriate actions in choosing the right suppliers. The aim of this study is to develop a framework for selecting sustainable suppliers by integrating quality management tools using the Kano model, Fuzzy Analytical Hierarchy Process, and Decision Matrix Method. To identify the critical sustainability criteria, the Kano model by the clustering the criteria for sustainable selection supplier was used. We then used the Fuzzy Analytical Hierarchy Process to determine the weight of each criterion and applied the Decision Matrix Method to select the most sustainable supplier. Afterward, the appropriate proposed framework was implemented in one of the palm oil industries in Indonesia to validate that the framework is applicable and useful. The study shows that the environmental dimension is the most sustainable supplier criteria followed by economy and social dimension. Quality, pollution control, and information disclosures were found to be important sub-dimensions for sustainable supplier selection.