Supplier Selection Using Analytic Hierarchy Process with Sustainability Approach; Case Study: Lorch Co.

Sustainable supply chain management has received much attention frompractitioners and scholars over the past decade owing to the significant attentiongiven by profit and not-for-profit organizations, consumers, legislation andregulation to environmental, social and corporate responsibility. Traditionally,organizations spot criteria such as price, quality, flexibility, etc. when evaluatingsupplier performance. As well as the traditional criteria, Selection criteria based onsustainability approach has found a specific place. This paper selects the enginesupplier of Lorch Company based on sustainability approach using analytichierarchy process method. Three economic, social and environmental criteria and11 sub-criteria were selected according to credible papers and finally, theappropriate criteria for the organization were selected and after an interview withthe management, the results were recorded in the respective matrices. Analytichierarchy process procedure assigned the priority to the second engine supplier witha weight of 0.533. Sustainable manufacturers should also have stable suppliers.

Keywords:

Supplier selection , Sustainability , Analytic hierarchy process (AHP)