Proceedings of The 4th International Conference on Advanced Research in Supply Chain Management
Year: 2024
DOI:
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Optimization For a Sustainable Supply Chain Using Fuzzy VIKOR Method: An Application on Pharmaceuticals Manufacturing Units
Anshu Abhilasha, Faizan Danish
ABSTRACT:
This investigation has considered the supply chain of pharmaceuticals from Indian manufacturing units to Tanzania. One of the main themes leading to a green economy is the sustainable supply chain, which creates the chance to lower carbon emissions all the way up the product value chain. This study examines optimized sourcing practices using a pharmaceutical company as a case study. It suggests a methodology to assist in choosing the top green supplier and assigning orders to prospective suppliers. There is a two-phase hybrid method in the suggested model. The Fuzzy VIKOR (Fuzzy VIekriterijumsko KOmpromisno Rangiranje) methodology is used in the first phase to rate and select possible suppliers based on social, environmental, and economic factors (such as late delivery times and freight costs). The second phase describes an order allocation procedure based on multi-objective linear programming (MOLP) that aims to minimize costs, delivery delays, and greenhouse gas emissions during transportation. Using ϵ-constraint method we apply MOLP model to optimize more than one objective in order to convert two objectives into single objective function. The usefulness of the model that is being presented is demonstrated through a case study of a pharmaceutical manufacturing facility. Forming such a model is helpful for the manufacturing unit to evaluate green supplier and allocate order. Three suppliers are evaluated who used ocean, air and truck as their mode of transportation. Using Fuzzy VIKOR technique suppliers are evaluated and it is observed that the suppliers who supply medicines through ship is the best supplier. It is observed that transportation via ocean is more environment friendly in comparison of truck and airplane.
keywords: ϵ-constraint method; multi objective linear programming; supplier selection; order allocation; two phase hybrid method