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Published Jul 31, 2019
Divesh Kumar

Abstract

The primary objective of this study is to propose an analytical approach to evaluate dimensions of the buyer-supplier relationships alternative selection in the context of a sustainable supply chain considering benefits, opportunities, costs, and risks of a relationship type. The study uses a Fuzzy Analytic Hierarchy Process (FAHP) approach to develop a model that explores benefits, costs, opportunities, and risks of a buyer-supplier relationship in a sustainable supply chain. A case study of the Indian automobile sector is used to determine the appropriate form of the buyer-supplier relationship. This study found that a problem solving relationship is the most preferred form of relationship. Long term relationships and joint development ranked 2 and 3, respectively. A sensitivity analysis showed that if the weights of benefits, opportunities, costs and risks are changed the preference for alternatives selection also changes. The most important implication of the study is in providing supply chain managers with a model for development of buyer-supplier relationships with their supply chain partners based on the considerations of benefits, opportunities, costs and risks involved in developing such a relationship in a sustainable supply chain. The novelty of the present study rests in the incorporation of sustainability specific criteria for selection of the relationship between two parties in a supply chain context considering benefits, opportunities, costs, and risks of a relationship type. This is the first such model that incorporates considerations of BOCR in a sustainable supply chain.


 

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Keywords

Sustainable Supply Chain; Analytical Hierarchy Process; Fuzzy Logic; Buyer Supplier Relationship, sustainable supply chain, Analytical Hierarchy Process, fuzzy logic, buyer-supplier relationship

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