AN INTEGRATED KANO MODEL, FUZZY ANALYTICAL HIERARCHY PROCESS, AND DECISION MATRIX FOR SUSTAINABLE SUPPLIER SELECTION IN A PALM OIL INDUSTRY IN INDONESIA (A CASE STUDY)

• Main Author: Halisa Fau, Kristin
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/52296
• Institution: Institut Teknologi Bandung

The selection of sustainable suppliers is one of the crucial things that industries have to do in acquire sustainability into their whole business process. This research is aimed to develop a framework for selecting a sustainable supplier by integrating quality management tools, fuzzy techniques, and MCDM method. Kano Model used to identify the critical sustainability criteria by clustering processes, Fuzzy Analytical Hierarchy Process applied to determine the weight of each criterion, and Decision Matrix Method used to select the most sustainable supplier among several alternatives. Afterward, the proposed framework is implemented to one of palm oil industries in Indonesia to validate that framework is applicable and useful. This study successfully identify 4 critical sustainability criteria (quality, delivery, production facilities, capacity of supplier) in economic dimension, 3 critical criteria (management system, pollution control, environmental costs) in environmental dimension, and 4 critical criteria (health and safety system, the interest and right of employees, child and forced labor, information disclosure) in social dimension. Moreover, we found that among the three dimensions of sustainability, environmental criteria are considered as the most important, followed by economic and social criteria. After implementation, the result shows that the framework is valid and could be a reference for a supplier to improve its performance.