A Conceptual Model of Green Supplier Selection in the Manufacturing Industry Using AHP and TOPSIS Methods

Abstract

The manufacturing industry is one of the fastest growing industries in Indonesia, the industry is a leading sector that contributes quite a lot to gross domestic product. One of the manufacturing industries is the furniture industry. The many environmental issues that occur have led to increased public awareness of the importance of environmental sustainability. This is a challenge in the manufacturing industry and requires companies to implement green supply chain management (GSCM). One of the strategies contained in GSCM is green supplier selection.Supplier selection criteria are generally only based on aspects of cost, delivery and quality.In this study, economic criteria (not only cost) and environmental criteria are used and propose a comprehensive model for selecting environmentally friendly suppliers.The method used in this research is AHP and TOPSIS. AHP is used to determine the weight of the criteria and sub-criteria, while TOPSIS is used to determine the priority of alternatives that are close to the positive ideal solution.