Abstract
Due to the increasing concern of environmental protection, many companies and academic institutions have been gradually more interested in green supply chain management (GSCM). This study develops a green supplier selection procedure to choose the appropriate suppliers. Since the green supplier selection problem consists of quantitative and qualitative criteria, many researches apply Elimination and Choice Expressing the Reality III (ELECTRE III) which allows that quantitative data are evaluated together with qualitative data. However, for the traditional ELECTRE III method, it is a difficult and arduous task to decide the indifference threshold, preference threshold, as well as veto threshold. Therefore, the main purpose of this research is to modify ELECTRE III method, which eliminates these subjective thresholds by using aspirational level and the worst level. We also adjust the discrimination threshold to provide more useful results. Besides, this study uses modified Analytic Network Process (ANP) to compute weights of criteria, it can deal with the problems of dependence and feedback between criteria and dimensions, which can also provide suggestions to improve suppliers’ performance. In the meanwhile, we use sensitivity analysis to show the range of weights which would affect suppliers’ ranking. Furthermore, this study applies the green supplier selection procedure to a case study of a Taiwanese TFT-LCD Company. As the results, the method not only ranks the suppliers but gives suppliers recommendations.