Sustainable Supplier Selection Using the Fuzzy Multi-Attributive Border Approximation Area Comparison (F-MABAC) in Chemical Industry

Fazrul Hamonangan Tanjung

Department of Industrial Engineering

Faculty of Engineering

Universitas Indonesia

Depok, Indonesia

Fazrul.hamonangan@ui.ac.id

Farizal F and Rahmat Nurcahyo

Senior Lecturer

Department of Industrial Engineering

Faculty of Engineering

Universitas Indonesia

Depok, Indonesia

farizal@eng.ui.ac.id, rahmat@eng.ui.ac.id

Abstract

The rapid growth of the industry in today's competitive environment has increased competition among companies. In order to gain business competitiveness, companies strive to focus on fulfilment of customer expectations of higher quality, lower prices, shorter lead times, and less environmental impact. Sustainability is an organization's ability to make decisions in real-time without an adverse impact on the future state of the environment, society and business stability. Since the production of most chemicals is highly hazardous and has the potential to cause irreversible environmental damage and have a negative impact on public health, safe and sustainable production is the main dictum for the development of sustainable chemical enterprises. Therefore, this paper addresses this issue by proposing a multi-method and multi-criteria decision-making framework for SSS in the chemical industry. Based on the specific characteristics of the chemical industry, this study uses AHP to analyse the economic, social, and environmental dimensions. Finally, this study will use Fuzzy MABAC to analyse alternatives. The proposed approach and decision-making model can help supply chain managers in the chemical industry to select more sustainable suppliers, respond quickly to market demands, and maintain high competitiveness in the market.

Keywords: Supplier Selection, Sustainability, Fuzzy MABAC, AHP, Chemical Industry

Biography / Biographies

Fazrul Hamonangan Tanjung is a master’s degree student in the Industrial Engineering Department, Faculty of Engineering Universitas Indonesia. He has research interests in sustainable supplier selection.

Farizal F is a senior lecturer in Management System in the Industrial Egineering Department, Faculty of Engineering Universitas Indonesia. He earned Bachelor of Engineering degree from Universitas Indonesia, Master degree from Oklahoma State University and Doctoral degree in from University of Toledo. His research interest in reliability design optimization, renewable energy, supply chain management and techno-economy.

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Mr. Fazrul Hamonangan Tanjung