HO CHI MINH CITY UNIVERSITY OF TECHNOLOGY AND EDUCATION FACULTY FOR HIGH QUALITY TRAINING THESIS EVALUATING AND SELECTING GREEN SUPPLIERS BY INTEGRATION OF NEUTROSOPHIC AHP-TOPSIS APPROACH: A CASE OF THE FAST-FASHION INDUSTRY. LE THI QUYNH GIANG Student ID: 19124057 Major: INDUSTRIAL MANAGEMENT Advisor: Dr. NGUYEN PHAN ANH HUY Ho Chi Minh City, May 2023 COMMENTS OF ADVISOR ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- HCMC, DD/MM/YYYY Advisor i COMMENTS OF REVIEWER ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- ------------------------------------------------------------------------------------------------------- HCMC, DD/MM/YYYY Advisor ii ACKNOWLEDGEMENTS During the period of completing the thesis, I received a lot of support from the lecturers. Through this, I would like to express my sincere thanks to the lecturers of Ho Chi Minh University of Technology and Education for creating conditions as well as teaching me useful knowledge and things.
These pieces of knowledge are a solid foundation for me to complete this thesis, as well as the knowledge to step into my future career. I would like to thank the group of experts who supported the author, facilitated, and wholeheartedly helped the author to carry out the thesis smoothly. Sincere thanks to Dr. Nguyen Phan Anh Huy for helping and guiding me in the process of making and completing this thesis.
Finally, I would like to wish all of you who have supported me in the process of doing the thesis to have more health and better development. We wish you much success in your noble career and in life. Best regards! HCMC, 04/05/2023 Student name Le Thi Quynh Giang iii LIST OF ABBREVIATION Abbreviation Explanation AHP The Analytic Hierarchy Process IVN Interval-valued Neutrosophic NIS Negative Ideal Solution PIS Positive Ideal Solution TOPSIS The Technique for Order of Preference by Similarity to Ideal Solution iv LIST OF TABLES Table 2. Saaty’s pairwise comparison scale.
2 The RI value corresponds to the number of factors n. Summary of related work in green supplier selection. 1 Criteria for evaluating and selecting green suppliers. IVN number scales of linguistic variables.
Scale for IVN values for alternative evaluation. Group of experts participating in the interview. Aggregated pairwise comparison matrix for main criteria. Pairwise comparison matrix normalization for main criteria.
Importance weights for main criteria. Aggregated pairwise comparison matrix for sub-criteria (C11-C13). Pairwise comparison matrix normalization for sub-criteria (C11-C13). Aggregated pairwise comparison matrix for sub-criteria (C21-C25).
Pairwise comparison matrix normalization for sub-criteria (C21-C25). Aggregated pairwise comparison matrix for sub-criteria (C31-C33). Pairwise comparison matrix normalization for sub-criteria (C31-C33). Importance weight for sub-criteria.
Global weight for each criteria. Aggregate the decision matrix for the criteria (C11 - C23). Aggregate the decision matrix for the criteria (C24 - C33). IVN normalized decision matrix for the criteria (C11 - C23).
IVN normalized decision matrix for the criteria (C24 - C33). IVN weight normalized decision matrix for the criteria (C11 - C23). IVN weight normalized decision matrix for the criteria (C24 - C33). IVN Positive ideal solution and IVN Negative ideal solution .Euclidean distance from IVN-PIS and IVN-NIS .Ranking green supplier .Hamming distance from IVN-PIS and IVN-NIS .Risk ranking of the supplier according to sensitivity analysis.
41 vi LIST OF FIGURES Figure 2. From crisp sets to neutrosophic sets. Structure diagram of AHP. Flowchart of AHP method.
Flowchart of TOPSIS method. Hierarchical structure of application. Separation measure and the revised closeness for each supplier. 41 vii TABLE OF CONTENT COMMENTS OF ADVISOR.
i COMMENTS OF REVIEWER. iii LIST OF ABBREVIATION. iv LIST OF TABLES. v LIST OF FIGURES.
vii TABLE OF CONTENT. viii CHAPTER 1: INTRODUCTION.1 Reasons for choosing this topic.3 Research object and scope.5 The structure of the subject. 4 CHAPTER 2: LITERATURE REVIEW.1 Green supply chain management.2 Green supplier selection.3 Fast-fashion industry.4 Interval-Valued Neutrosophic Sets.5 The Analytic Hierarchy Process (AHP).6 The Technique for Order of Preference by Similarity to Ideal Solution.7 Summary of related work.2 The proposed method.4 Interval-valued neutrosophic AHP .1 Preliminaries of interval-valued neutrosophic .2 Steps in interval-valued neutrosophic AHP.4 Integration of Interval-valued neutrosophic AHP-TOPSIS .2 Data analytic result .1 Interval-valued neutrosophic AHP .2 Interval-valued neutrosophic TOPSIS. 54 ix CHAPTER 1: INTRODUCTION 1.1 Reasons for choosing this topic.
The fourth industrial revolution is about to begin throughout the world. Besides the outstanding development of science and technology, environmental problems are the issues that need to be given top priority. One of the business models criticized for its negative impact on the environment and society is fast fashion. According to the United Nation (2019), Fast fashion is the second most polluting business behind the oil industry.
It contributes 10% to world emissions, generating more carbon dioxide annually - 1.2 billion tons - than the shipping and aviation sectors put together. The industry's greenhouse gas emissions are anticipated to rise by more than 50% by 2030 if this rate is maintained. These emissions are produced along the whole supply chain of the fast fashion sector, from the origin to the origin of the raw materials, manufacture, and processing, to shipping and in transit (Fleischmann, 2019). Faced with concerns about the environmental situation and the increase in the amount of fashion waste.
Consumers are more and more interested in the green living movement and begin to worry about the origin of products. Therefore, the supply chain of garment enterprises in general as well as fast fashion businesses in particular must pay attention to the "green" issue in the supply chain in their operations besides stopping at maximum cost saving, high profit. An important aspect of this is the assessment and selection of green suppliers, which can help companies reduce their environmental impact and improve their sustainable performance. Lo et al.
(2018) said about green purchasing is a crucial component of the growth of sustainable businesses, and it frequently has an impact on the operations and environmental protection strategies of an organization. According to Kokangul and Susuz (2009) and Lee and Drake (2010), the percentage of high-tech firms that purchase raw materials and components can reach 80%, making buying techniques essential to the management of a green supply chain. Choosing the suitable company as a product or case supplier requires consideration of many complex factors and is therefore considered a multi-criteria decision-making problem (Kumar, Rahman, & Chan, 2017). 1 Supplier selection has a direct impact on an organization's profitability and competitive position.
Therefore, this problem has been implemented by many researchers to build models to evaluate green suppliers in related industries such as textile industry, garment industry in the most effective way. Utama (2021) conducts a case study of a garment company in Indonesia. Research results shows that the quality criterion gives the largest weight. The results of this study show that the integration of AHP and VIKOR can be used to solve green supplier selection problems.
Wang et al. (2019) demonstrates how to choose the best sustainable suppliers in the garment industry using a hybrid approach combining FAHP and TOPSIS. While, Roy et al. Karami et al.
(2021) applying three approaches to evaluate the supplier in garment industry by integrated DEA– PCA–VIKOR. In another research paper, Jia (2015) selected the optimal supplier to supply sustainable materials in fashion clothing production by using Fuzzy TOPSIS method to evaluate 12 criteria of sustainable suppliers. Based on seven key factors—operational competence, product attribute, logistic warehousing, ethics, status, business competencies, and versatility – Kaushik et al. (2022) selects suppliers for the online fashion retail industry.
Prioritizing the criteria and choosing the most practical suppliers from a pool of potential suppliers required the application of an integrated Best Worst Method (BWM) - VlseKriterijumska Optimizacija I Kompromisno Resenje (VIKOR) approach. In the context of the rapid development of the garment industry, which must ensure environmental issues, choosing a suitable green supplier for businesses is extremely important. However, there are currently few research models on green supplier assessment in the fast-fashion industry. As the best as my knowledge, there is lack of research on evaluating and selecting green suppliers by using Interval-valued neutrosophic AHP-TOPSIS in fast fashion industry.
For the above reasons, the author has conducted a research paper: "Evaluating and selecting green suppliers by integration of neutrosophic AHP - TOPSIS approach: a case of the fast-fashion industry." to conduct research on the criteria of the green suppliers in fast-fashion industry. In addition to the general criteria for supplier evaluation, this study 2 assesses the priorities of “green” issues, which can play an important role in sourcing and attempts to propose important environment variables that can be used in supplier selection. This paper aims to contribute to the theoretical development of green supplier selection and to develop a systematic and effective framework for the selection of green suppliers in the fast fashion industry.2 Research objectives General objective: Evaluating and selecting green suppliers in the fast-fashion industry Detail objective: - Identifying importance criteria and sub-criteria in the fast-fashion industry when choosing green suppliers. - Evaluating criteria and sub criteria of green suppliers in the fast-fashion industry base on AHP – TOPSIS method and using the interval-valued neutrosophic number - Raking green suppliers through the evaluation of criteria 1.3 Research object and scope Research object: The object of the study is a green supplier in the fast-fashion industry Research scope: Fast-fashion industry 1.4 Research methodology Data collection methods In order to gather evaluation data on the relationships between the criteria, this study used the expert consultation method of data collecting.
The experts taking part in the interview process are individuals with extensive knowledge and experience in assessing and choosing suppliers, as well as those with expertise in the area of procuring raw materials for garment factories. Interval-valued neutrosophic integration model AHP-TOPSIS In this study, the Analytic Hierarchy Process method combines TOPSIS and interval-valued neutrosophic set to evaluate and select green suppliers. Input data is through data collection method 3 1.5 The structure of the subject The thesis consists of 5 chapters as follows: Chapter 1: Introduction Presentation of reasons for choosing topic, research objective, object and scope of research, methodology and structure of topic. Chapter 2: Literature Review Outlining concepts and theories about green supplier, fast-fashion industry, basic theory of AHP-TOPSIS method and interval-valued neutrosophic number.
Chapter 3: Methodology As well as listing previous studies from which to point out the criteria and build a research model for the article. Describing in detail the research methods. In particular, the method is implemented based on the combination of AHP and TOPSIS. Chapter 4: Result Analyzing and interpreting data based on interviews and using the methods outlined, including interval-valued neutrosophic AHP and TOPSIS results.
Chapter 5: Conclusion From the results of chapter 4 on the ranking of options and make a green supplier recommendation for the fast-fashion industry. Summary of Chapter 1: Conducting research to find out how to solve the challenges of choosing green suppliers to minimize the impact on the environment. In this study, the AHP-TOPSIS method combined with the interval-valued neutrosophic number was used to evaluate and select green suppliers for the fast fashion industry through interviews with experts with specialized knowledge. The 5-chapter study will evaluate and select green suppliers based on the criteria that have been synthesized.
4 CHAPTER 2: LITERATURE REVIEW 2.1 Green supply chain management According to Srivastava (2007), green supply chain management is a combination of supply chain management and environmental management. The goal of a green supply chain is to assist businesses in maintaining a balance between their environmental and economic performance, decrease the environmental effect of their goods and services, and promote a green image (Sarkis, 2001) According to Sarkar et al (2017), the aim of green supply chain management is to integrate logistical and financial data thoroughly, in order to promote the competitiveness of supply chain units' products or services, which leads to sustainable firm development and enhanced environmental protection.