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Sustainable Supplier Selection and Order allocation using Integrating AHP-TOPSIS and Goal Programming
Increased awareness of environmental and social aspects has
become an urgent global issue, especially in ensuring supply chain
sustainability. In addition, optimizing sustainable supplier
selection and order allocation is also crucial for companies to
encourage sustainable industries. This research aims to
determine the best potential sustainable suppliers and determine
order allocation by considering economic, social, and
environmental dimensions. This research proposes an approach
that integrates AHP-Topsis and goal programming to solve the
problem of sustainable supplier selection and order allocation.
The AHP-Topsis procedure is proposed for weighting the criteria
and sub-criteria of sustainable supplier selection. Meanwhile,
Topsis is offered for supplier ranking. This study offers a goal
programming procedure for order allocation. Order allocation is
based on three goals: minimizing total procurement cost,
maximizing total purchase value, and reducing carbon emissions.
A case study is presented on the plastic bean processing industry
in Indonesia involving three criteria (Economic, social, and
environmental) and 17 sub-criteria. The analysis results show
that economic criteria have the highest weight, followed by
environmental and social criteria. Furthermore, the TOPSIS
method selected the three best suppliers out of 5 alternative
suppliers to receive order allocation. The order allocation process
for three periods was carried out using the Goal Programming
method on suppliers C, E, and A. This research contributes to
improving supply chain sustainability. It provides practical
guidance for companies in selecting suppliers and allocating
orders efficiently.
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