Green Supplier Selection in Edible oil Production by a Hybrid Model Using Delphi Method and Green Data Envelopment Analysis (GDEA)

Abstract

Abstract An organization's environmental performance is affected by its suppliers' environmental performance, and selecting green suppliers is a strategic decision in order to be more competitive in today's global market. By developing green movement across the globe, organizations are under pressure to reduce the emissions across their supply chain. Formerly the food production systems was oriented and optimized to satisfy economic demands and the nutritional needs of a rapidly growing world population. The food production industry requires large inputs of resources and causes several negative environmental effects. In recent years, environment factors rapidly emerging as an important issue for decision makers in food industries. This study identifies best supplier in holistic perspective for edible oil production, and proposes a hybrid model using Delphi method and Green Data Envelopment Analysis (GDEA). Delphi method identifies the main criteria influenced in supplier selection process based on opinion of company purchase experts. GDEA evaluates the overall performances of suppliers and choose green supplier. Proposed hybrid model applied to a well-known company who produce edible oil (palm, soybean and olive oil) to evaluate green suppliers (among 13 main potential suppliers). Delphi questionnaire included 17 factors which were from financial, services, qualitative and environmental factors. The factors with the highest Delphi score (raw material price, quality, delivery and carbon footprint) entered in DEA model and high efficiency suppliers selected. Results showed that the most efficient raw oil suppliers of company are: S4 among soybean oil suppliers, P1 among palm oil suppliers and O3 among olive oil suppliers. Also palm oil not only has fewer price and carbon footprint but also the highest mean efficiency.