A Two-Stage Multi-Criteria Supplier Selection Model for Sustainable Automotive Supply Chain under Uncertainty

Abstract

Sustainable supplier selection (SSS) is gaining popularity as a practical method to supply chain sustainability among academics and practitioners. However, in addition to balancing economic, social, and environmental factors, the emergence of the COVID-19 pandemic has affected the selection of long-term suppliers to ensure sustainable supply chains, recover better from the pandemic and effectively respond to any future unprecedented crises. The purpose of this study is to assess and choose a possible supplier based on their capability to adapt to the COVID-19 epidemic in a sustainable manner. For this assessment, a framework based on multi-criteria decision making (MCDM) is provided that integrates spherical fuzzy Analytical Hierarchical Process (SF-AHP) and grey Complex Proportional Assessment (G-COPRAS), in which spherical fuzzy sets and grey numbers are used to express the ambiguous linguistic evaluation statements of experts. In the first stage, the evaluation criteria system is identified through a literature review and experts’ opinions. The SF-AHP is then used to determine the criteria weights. Finally, the G-COPRAS method is utilized to select sustainable suppliers. A case study in the automotive industry in Vietnam is presented to demonstrate the proposed approach’s effectiveness. From the SF-AHP findings, “quality”, “use of personal protective equipment”, “cost/price”, “safety and health practices and wellbeing of suppliers”, and “economic recovery programs” have been ranked as the five most important criteria. From G-COPRAS analysis, THACO Parts (Supplier 02) is the best supplier. A sensitivity study was also conducted to verify the robustness of the proposed model, in which the priority rankings of the best suppliers are very similar. For long-term development and increased competitiveness, industrial businesses must stress the integration of response mechanisms during SSS implementation in the COVID-19 epidemic, according to the findings. This will result in significant cost and resource savings, as well as reduced environmental consequences and a long-term supply chain, independent of the crisis.