A fuzzy TOPSIS model for selecting digital technologies in circular supply chains

Abstract

Several digital technologies are available to facilitate the transition toward a circular supply chain infrastructure. Small-Medium Enterprises (SMEs) should assess their readiness and measure their performance to select the most appropriate digital technology. This study explores how well-established digital technologies such as Cyber-Physical Systems (CPS), the Internet of Things (IoT), Cloud Manufacturing (CM), and Big Data Analytics (BDA) impact circular supply chain infrastructure in SMEs. Questionnaires have been distributed to collect employees’ preferences concerning the circular supply chain management criteria (profit, innovation, sustainability, and optimization). The responses have been organized into three clusters using Principal Component Analysis (PCA). A fuzzy Technique for Order Performance by Similarity to Ideal Solution (TOPSIS) technique is adopted to evaluate these technologies since it constitutes a reliable managerial tool when vagueness impacts the smooth operation of the supply chain. Results indicate the ranking order of the investigated digital technologies (CPS>IoT>CM>BDA) as well as the circular benefits and the supply chain attributes imparted upon implementing these technologies. Such benefits and attributes are provided to assess the impact of these digital technologies on a circular economy. Lastly, the perspective of the selection process affected by other factors, such as the enterprise’s extroversion level and its internal structure, are discussed.