MACBETH BASED TAGUCHI LOSS FUNCTIONS APPROACH FOR GREEN SUPPLIER SELECTION: A CASE STUDY IN TEXTILE INDUSTRY

Due to the increasing concern towards environmental protection, companies have started to adapt environmentalist approaches with the aim of being perceived as green. However, this might not be enough in performing in a supply chain thus working with green partners is mandatory. Since suppliers have important effects on the performance of supply chains, it becomes more important to evaluate potential suppliers by considering environmental factors. This study proposes a novel integrated approach consisting of MACBETH and Taguchi loss functions for green supplier selection problem. The proposed approach determines the weights of criteria by using MACBETH in the first stage. These weights are used in Taguchi loss functions for ranking and selecting the best suppliers. A real case study from textile industry is presented to illustrate the applicability of the proposed methodology. Moreover, the impacts of the changes on criteria weights have been investigated through sensitivity analysis.