Green supplier selection generic framework: a multi-attribute utility theory approach

Abstract

This paper presents a generic framework integrating environmental and social criteria leading to a comprehensive selection process of green suppliers. Traditionally, price, quality, lead time and flexibility are considered for the supplier selection. With the increase in awareness of environmental and social responsibility issues, many companies are tending towards adopting green concepts and sourcing green suppliers. This study proposes a framework consisting of environmental (E), green (G) and organisational (O) factors that are required for the green supplier selection process. These factors are further classified as criteria for which attributes are presented. A hierarchy is constructed to facilitate in evaluating the importance of the selected criteria and alternatives of green suppliers. To cater to the multi-criteria decision-making approach with both quantitative and qualitative attributes, we applied the multiple attribute utility theory, which is a decision support that helps managers formulating viable sourcing strategies. A hypothetical example is presented to illustrate the applicability of the approach.