49 GREEN SUPPLIER SELECTION PROBLEM IN AUTOMOBILE INDUSTRY USING TOPSIS
METHOD
1Tohina
PG. Scholar (Industrial Engg. & Management)
2Nitin Yedmewar
Assistant Professor, Dept. of Mechanical Engineering, Takshshila Institutes of Engineering & Technology, Jabalpur, (M.P)
Abstract-One of the most important agendas of the world is the global warming. In order to protect theecological balance, all organizations turning towards using natural resources more effectivelyand not harming the environment, nowadays growing environment of the organization orindustry have encouragement to go for sustainable development in any firm and growing awareness between consumer related to environmental concern indicate the path for manufacturing aspect and thing about the greening process. The main goal of this research work is to help decision-makers identify the importance of possible supplier selection, and the supplier selection process is a multi-criteria decision making (MCDM). An industry or organization wants to maintain competitive advantages inthe global market and focus on green products for environmental requirements. This research work aimed to select the supplier for a large-scale company that is operating in the automotive manufacturing industries evaluated by using the TOPSIS (Technique for order Preference by Similarity to Ideal Solutions) in this view, GSCM is one of the best options for the industries. GSCM provides safety against the hazards associated with the industry. It also converts the industrial operation to a green operation and implementation approach in the manufacturing sector.
Keywords: Green supplier selection (GSS), Multi-criteria decision-making (MCDM), Indian automobile industry, Performance variable, TOPSIS method.
1. INTRODUCTION
As the industry growing at a rapid speed in developing countries According to development technology in India a natural source is an important factor which was already spent or will bespent are evaluate and after and use of Renewable energy can be increasing after criticizing infossil fuel. The industries follow moderate strategies in cost-effectiveness resulting.
All the modifications make helps to improve the efficiency and operation of the industry. In this regard there is one consideration was left that is environment consideration between value chain. An environmental-related consideration is, especially in the manufacturing industry.
Industries are researching ways to have better control of the pollutants out from the industry during the manufacturing cycle. Nowadays business processes are changing according to terms and conditions. In any production processor manufacturing industry customer demand is the main criteria for building up any business deeply. The inventory network the board cycle makes it harm less to the ecosystem. Green buying, green plan, green creation, green show casing, green conveyance, and converse
coordinated factors are characterized as green store network the board parts. This move mentis by all accounts a particularly decent shipment in the production cycle. In any organization or industry business benefits varies from market to market.
1.1 Motives for Green Supply Chain Management
The main contribution of our research is focuses on the environment issues which is the one of the most important aspects in today scenario. Few studies have already focused on green supply chain management in the literature. We also expect that increase in number of green supplier selection in recent year. So, there is as till gap in the literature related to environmental valuations of supplier and whatever green supplier selection in the literature are evaluate, butno study has been found in which TOPSIS integrated method has been applied. The Green production network is arisen as a reaction for long term patterns in assembling businesses. Inthemid twentieth century, the assembling businesses are described by union of vertical integration i.e., the
50 significant parts for the item are produced
and collected inside the business. In the later piece of the twentieth century, it is described by reevaluating capacities were the enterprises made to be more subject to their providers for great and required quality, quickly conveyance of merchandise and to make the item in serious costs. Along these lines, the provider's natural effect can influence the any of those components, so it is requested that the providers should rehearse the green store network to assist the association with defeating the ecological difficulties (Green Business Network, 2001).
1.2 Green Supply Chain Management Green supply chain management the board as―integrating ecological suspecting into production network the executives, including item plan, material obtaining and choice, fabricating processes, convey ance of the eventual outcome to the customers as well as end- of-life the board of the item after its helpful life. This shows that the natural perspectives are considered in each course of the item life cycle). Green inventory network focuses on non stop upgrades of modern cycles and items to lessen or forest all contamination to air, water and land. They additionally proposed that by these upgrades, there is probability of limiting dangers to people and different species. (Srivastava 2007).
These exercises compromise all the cycle ingreen supply chain beginning from green acquisition to green assembling to green dispersion till reuse and squander the board of the item., producers introduced their discoveries of green assembling exercises in various view points (Ninlawn, et al., 2010).
Figure 1 Green Supply Chain Management
1.3 Green Logistics Practices
Green coordinated factors rehearse are the mix of exercises important to move items all through the supply chain network determined to deliver and appropriating merchandise in a green manner by thinking about environmental and cultural issues. A proficient transportation and dispersion frame work saves coordinated factors over heads and further develops client connections to create greater benefit turn around operations rehearses are the arrangement of strategies and recovery exercises (reusing, reusing and remanufacturing) to items that are byand by usable by Globally, the finish of-life vehicles and worry for assets are becoming significant constrains for auto producers to start remanufacturing exercises. Green operations exercises will help in diminishing ecological effects while simultaneously keeping up with or working on quality, dependability, energy reserve funds and costdecreasesetc.
Table 1 Advantages of GSCM implementation
1.4 Green Supplier Selection Criteria During the buying product, a company decides the favorite supplier based on specification and required conditions.
Effectiveness of evaluation can make help company risk associated with suppliers.
In addition, different methods have been applied with the potential supplier such as delivery, flexibility, quality, and price.
However, none of these methods considered the importance of environmental factors in the selection of suppliers. In recent years, some researchers identify a few environmental criteria such as design for life cycle analysis, green supply chain natural framework. One might say that there is no worry on the choice measures for green supplier choice. (Gruel, O., et al. 2015).
51 1.5 Materials and Methods
This exploration work was done in a huge scope organization working in the car providerindustry. Notwithstanding the organization's 2023 vision, the TOPSIS technique has been utilized to choose the best alternatives among the environmental concern with supplier.
The TOPSIS strategy was first presented by Hwang and Yoon [29] in 1981 and is one of the most generally utilized MCDM techniques [30]. The guideline of this strategy is to rank the choices by computing the distance between every alternative’s positive ideal solution and the negative ideal solutions for the issues indirection and along these lines decide the ideal option[31]. The best option in the strategy is the closest distance to the positive ideal (PIS) and the farthest distance to the negative ideal solutions (NIS). PIS is a speculative alternative that amplifies benefit criteria and limits cost rules. On the other hand, NIS augments cost standards and limits benefit measures [32].
The TOPSIS strategy has a basic estimation, simple arrangement, and incorporation intoanother method because in this method effective decision- making approaches are used in different applications and reducing hazard the executives, internet business, provider determination, environmentally friendly power, water asset the board, environmental change, and supportability evaluation, coordinated operations, energy the board, plan, designing, creation frameworks, well being and security the board, and soon[32].
The steps of the TOPSIS method are described below.
Construct the decision matrix (A):
Construct the normalized decision matrix.
Compute the weighted normalized decision matrix.
Determine the positive ideal A∗ and negative ideal A−solutions.
Compute these parathion measures of each alternative from the positive ideal solution(Si*) and the negative ideal solution (Si-).
Compute the relative closeness to the ideal solution.
Sort alternatives by the relativecloseness.
2. LITERATURE REVIEW
The gaps in the systematic review from previous studies have enabled scholars to explore andresearch new complex issues in each different situation. In the industrial GSCM practices willface many differences as well as account the needs and satisfy its stake holders. Generally, GSCM practices are central develops in the speculated model with inside environmental management and green data systems as for erunners and environmental, monetary, operational, and hierarchical performance as results.
In addition, it also based on theory and capacity building, a factor that considered internal performance measurement cannot be ignored that the development of necessary technical competence (Cavusgil, Seggie, & Talay, 2007). There searchers who have identified a green supply chain with sustainability created all around the Automobile industry and focused then on the environmental performance part of sustainable development. (Carter & Liane Easton, 2011).
Puryono et al. (2017) in this research author was applied green supply chain for improving financial performance of the organizations and used AHP method to calculate supply chain performance, from the SCOR model he compared the real weight gain. Author was also used DuPont Ratio Analysis method (ROA and EVA model) for company performance. The result of the study is provided decision- making information that analyzes green supply chain and the company performance. The research show that companies execute green procurement, green manufacturing, and green supply can increase companies financial by 87.3% and efficiency by 12.7%. This application can be developed to assist managers in making decisions when planning to implement a green supply chain.
Santos et al. (2019) In this research author developed a questionnaire that would sharing to 117 respondents on GSCM practices Brazilian manufacturer. There are three hypotheses formulate in this research: (H1).
Developed green practices with suppliers have a positive impact. Or (H2)Green
52 practices with customers on operational
implementation and (H3 Balanced up- down situations of GSCM with suppliers and customers has operational benefit for organizations. The result show that the operational performance has positive effect between suppliers and/ or customer in GSCM. This research offered empirical support for managers to promote environmental practices that aim to operational performance and sustainable growth.
Sahar, D P et al. 2020: In this paper author made an informative survey research design in Textile Industry in Eldoret, Kenya. The questionnaire was used as an instrument for data collection.
The results showed that the three objective variables (green procurement, green manufacturing, operations and reverse logistics) showed an identical solid relationship with the dependent variable (organizational productivity). So that textile industry must consider the environmental impact when making purchasing decisions. Hence it has initiated to approve production with comparatively low and efficient green impacts resulting in no waste/pollution.
And logistics practices that observe with eco-friendly regulations include the movement of products, information, and services from source outilization.
Malviya. Rakesh Kumar et al. 2018: In this research work author was implement green supply chain management (GSCM) and choose the best GSCM process with the help of analytical network process (ANP) methodology. ANP help interrelations between various dimensions and constraint of green supply chain strategy, for this purpose author was applied fuzzy set for human preference judgment. This ANP was used in Indian automobile industry and proposed a framework. The result show that maximum impact on each dimension and challenge in front of organization to improve green management system with the suitable GSCM strategy. This study helps to identify their environmental advantage and balance the organizational structure with green atmosphere and also help to take decision for top level manager.
2.1 Green Supply Chain Barriers
Tumpa. Tasmia Jannat. Et al (2019): In this research, work author described GSCM barriers in the textile industry and comprehensive investigation and review the hurdles in adopting green supply chain management. A questionnaire survey was performed of the textile industry and took a sample size of 30.
The hierarchical analysis technique was used to identify the barrier. Opinions are taken by the survey from the experts and significance the relative importance ofbarriers. Fifteen barriers are taken by the author for the adoption of green supply chain management and with these barriers; data was collected from the textile industry. The research indicates that the most significant barrier is that there is low demand from customers and economic constraints resulting from short term little financial benefit to businesses, with lack of government regulations also a commonly faced barrier in adopting green supply chain initiatives.
Kot et al. (2018) This research work based on detail analysis of sustainable development ingreen supply chain management in SME sector and find out the implementation in this sectorand developed. This investigation shows that small and medium enterprises more attentive inenvironment of green supply chain process and also connected with the customer on priorities basis.
2.2 Drivers for GSCM
53 3. OBJECTIVE OF THE RESEARCH
The objective of the research is to investigate the audit of green store network the board rehearses and assess the exhibition region with the objective of the exploration strategy utilized in the exploration region. Specialists previously distributed there is by all accounts a specific arrangement of system which have been utilized in this space of ten times, yet there is a need to do a more definite review can identify related to GSCM and its performance. The main objective of our research in automobile industries that analyze all the parameters in the automobile sector that identify very effectively implementations in the environment action taken place by the government with the information technology (IT). We need to necessary for providing supportive information in the product life cycle. In the present scenario of the automobile industry competition and uncertainty is quite high. So that there are some innovative green practices in which collection of green supply chain knowledge are to be needed with the support of hierarchical and quality of human resources. GSCM financial constraints likewise lead to protection from green practices. We have identified performance variables to implement in the Indian Automobile industry. Our research work evaluates the effect of earlier studies in a different area in the Indian automobile industry and we aim to point out the variable performance of GSCM.
These performance variables are Encouragement IT Implementation;
Adoption of technology advancements;
Organization Motivating; Quality of Human Resources; Market Competition and Uncertainty; Government Support systems; Innovating Grееn Practices; Top Management Commitment; Cost Implications; Supplier.
4 RESEARCH METHODOLOGY
In industries, the decision making regarding the corporate atmosphere is very crucial and try to find more attention. To solve real-life problems such as the criteria selection based on influence, MCDM techniques are very much popular in dealing with situations selection of green suppliers is considered an MCDM problem. For the solution of the problem, as an MCDM method,
TOPSIS is proposed.
The Technique for order of preference by similarity to ideal solution (Topsis) a multi-criteria decision analysis method, which was originally developed by Ching Lai Hwang and yoon in1981.
Topsis is based on the concept that the chosen alternatives should have the short estgeometricdi stance from the positive ideal solution and the long estgeometric distance from the negative ideal solution.
It is a method of compensatory aggregation that compares a set of alternatives by identifying weight for each criterion normalizing scores for each criterion and calculating the geometric distance between each alternative and the ideal alternatives, which is the best score in each criterion. In TOPSIS that the criteria are monotonically increasing ordecreasing normalization is usually required as the parameter or criteria. In the present study we used five attributes amongst the four suppliers For Supplier Selection of Auto motive manufacturing industry basic steps of TOPSIS method descry bed given below.
4.1 Proposed Green Supplier Selection Frame Work
An automotive Manufacturing Industry environment al social responsibility consciousness that every industry should have with the enhancement of people's awareness of environmental protection, the concept of GSCM is deeply rooted in people's hearts. Various policies encourage the industry to develop in a greenway, and we will introduce an application of thismethod is the selection of a green supplier for the Indian automotive manufacturing industry. The case company realizes that providing greener products not only better meets the needs of customers but also reflects the social value of the company. Finding good green suppliers isthe key to improving its supply chain management.
The case industries find out a way to identify and select suppliers that support the case company’s adoption of GSCM practices. In our research work basically, four major suppliers have been recognizedas candidates for the company (supplier 1, 2, 3, 4), During the process of selecting criteria, in addition to the established decision criteria for supplier selection, in the process of understanding
54 the company’s actual operating
conditions and requirements on its suppliers, we have found thatin previous suppliers did not have good after-sales service, and by default company often had to deal with defective products. Green supplier selection criteria are determined with the help of a team of 4 people working in the quality, logistics, and purchasing departments of the company.
The same team then identified four suppliers from the company's perspective suppliers that fit the green supply concept and the green supplier selection model.
Figure 2 Green supplier selection model diagram
According to framework, alternative green supplier selection criteria depend up on the common opinion of the team consisting of 4 people. In addition, the importance weights of the selection criteria are determined. Based on these evaluations, the decision matrix. 1-9 weight scale is used to evaluate the suppliers of the team. (1: Very Low, 9:
Very High).
Table 2 Decision matrix
Table 3 Green Supplier Selection Criteria
Table 4 Normalized decision matrix
Table 5 Weight calculation of attributes
Table 6 Weighted normalized matrix (V)
Table 7 Weighted normalized matrix (V)
Table 8 Ideal best and ideal worst calculations
Table 9 Calculation these parathion measure for each row
Table 10 Calculation of relative closeness to the ideal solution
55 Table 11 Rank the options
5. CONCLUSION
Clients have inclination natural items due to ecological mindfulness and organizations ormakers center around ecological reasons for progressing in a competitive market. Likewise, environmental awareness is vital because of the expanding significance of green supply chain management, and the choice of the most reasonable green supplier for the organizations hasbecome critical. This study introduced an organized procedure for supplier selection andassessment in a supply chain, to assist association with laying out an orderly methodology for supplier selection likely selection in a supply chain. Our proposed technique has the accompanying benefits. The Tops is technique was utilized for positioning options in a complicated choice climate.
Tops is techniques are adaptable and mirror a genuine climate. The fundamental outcomes and commitments of this study is tended to as follows: A contextual analysis on provider determination and assessment for an Indian car industry: in view of the proposed provider choice and assessment philosophy, the key performance factors for an Indian auto industry are investigated through the exhaustive writing study to lay out the system of assessment standards and pointers for choosing providers. In this way, the four automobile suppliers of a solitary organization are chosen utilizing the information given by the business. In light of the assessment and computation processes for five key performance indicators, positioning of the four chose providers finished by utilizing the TOPSIS.
The outcomes in this study can assist
endeavors with working with the choice and assessment of reasonable providers during inventory network arranging and plan. The consequences of such choice and assessment can incorporate expanding item advancement ability and quality, lessening improvement process duration and cost, and eventually expanding item attractiveness.
6 .OUTCOME AND SUGGESTIONS
Restrictions of the concentrate along side future exploration headings are additionally introduced. While it is perceived that the suggested strategy offers functional benefit in the green supplier selection, this research has a few impediments. The leader's profound exhibitions which are significant factors were not considered in the proposed technique. Another significant limit is that we didn't think about the potential correspondences and connections between the standards. The proposed methods have a few drawbacks. The vastmajority of the assessments proof are expected for navigation are relies upon specialists on emotional judgment and participation of thoughts between the experts in the dynamic interaction yet it is challenging to keep away from. The interrelationships among green provider determination rules are disregarded and our future works will effort to overcome the above sign downsides. It is prescribed to think about these elements in future exploration forarising a more successful green supplier determination. Besides, the review could be gone onwith assumption that the proposed approach could be applied to other dynamic issues inassembling and different administration applications, for example, item plan choice, areadetermination, office formats, material replacement choice, adaptable assembling frameworks, and so forth At long last, more work and extra exploration is required for characterizing and recognizing green supplier selection criteria.
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