Employing Fuzzy ANP for Green Supplier Selection and Order Allocations: A Case Study

In recent decades, purchasing management in a supply chain has been a challenge for most companies. In most industries, the cost of raw materials constitutes the principal cost of the final products. Therefore, purchasing department can play a key role in companys efficiency and effectiveness. Absolutely, with the increasing importance of purchasing, purchasing decisions have also been more important. In recent years, the amount of environmental consideration have been one of the important issues was added to supplier selection decisions. In this study, an approach is proposed for supplier selection and allocation taking into account the environmental implications. In that case, the most important purchase items are identified using ABC analysis. Then, in order to evaluate the performance of suppliers accurately, performance evaluation criteria are identified and screened. Next, using Analytic Network Process (ANP), suppliers are ranked. Finally, orders allocation is done to qualified suppliers through implementing a linear multi-objective programming model. To show the applicability of proposed approach, purchasing process of Asia Pishro Diesel Company was studied as a case study.