Abstract
With growing worldwide awareness of environment consciousness, European Union (EU) has released some environmental directives since 2003. The execution of these directives has driven Taiwan’s electronics industry to take some environmental specifications into account when managing their supply chains. To benefit from the green market trend and satisfy the demand of customers, some companies in Taiwan have implemented green supply chain and established green purchasing specifications. One key factor for green supply chain management process is the green supplier selection. This study examines green supplier selection and management where multiple attribute decision making (MADM) methods are adopted to reflect various environmental performance criteria. The green supplier rating system based on AHP method and ELECTRE III method is proposed. To demonstrate the potential application, a real case of selecting polarizer supplier of TFT-LCD manufacturer A is presented. The selection processes of the proposed approach are conducted in three steps. First, we build up the supplier selection criteria by literature review and in-depth interview with the decision makers. Secondly, an AHP decision structure is constructed to evaluate the degree of importance for the selected criteria. And, the criteria weights are derived from the experts’ questionnaires. Finally, we take advantage of ELECTRE III method which has the characteristic of non-compensatory and considers the situations of incomparability and indifference. Therefore, we make the ranking result even truly reflect the decision makers’ opinion. This thesis provides a useful, practical and flexible model for companies to select the profitable green supplier. It can also be used to evaluate the strengths and weaknesses of the suppliers for TFT-LCD or related industries. In practical, decision makers can enhance their supplier management with the evaluation results depending on various managerial considerations. They could choose the appropriate suppliers to keep the manufacturer competence in the market competitive.