The Establishment of a Green Supplier Selection and Guidance Mechanism with the ANP and IPA

Abstract

This study aims to establish a green supplier selection and guidance mechanism by integrating the features of an ANP (Analytic Network Process) and an IPA (Importance–Performance Analysis) to achieve sustainable management for green supply chains. Using an expert survey, this study developed green supplier selection criteria. It adopted an ANP, which allows for interdependencies and feedback between the various criteria, to select competitive green suppliers. Then, it used an IPA, which can analyze the criteria’s significance and performance levels, to provide green suppliers with direction for guidance and improvements. The green supplier selection and guidance mechanism featuring an ANP and IPA is thus established and validated through case studies. The research results showed the following: (1) the green supplier selection criteria comprise a total of 11 performance evaluation criteria from the three dimensions of operation, competence, and environmental consciousness; (2) as shown by the APN evaluation results, environmental benefits, environmental regulations, finance, technological competence, and delivery time are the top five among the overall green criteria of the company; the performance of the various suppliers is thus arranged in order, and the most competitive supplier is selected; (3) an IPA is used to analyze the criteria’s significance and supplier performance levels and to provide the suppliers with suggestions on priority improvements, including implementing the requirements in the environmental regulations, establishing comprehensive financial management procedures, improving corporate technological competence, and consolidating customer service; (4) it is suggested that an ANP and IPA should be integrated in the applications, which could simplify the green supplier selection and guidance mechanisms and increase the efficiency of supplier management, thus creating a three-win situation for the clients, the company, and the suppliers.

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