Supplier selection of recycled plastic materials using best worst and TOPSIS method

Abstract

Supplier selection problem is one of the most important business activities related to sustainable development because it has significant effect on product quality and quantity and sustainability issues. PT Wonorejo Makmur Abadi is a plastic manufacturing company that produces plastic mats in many various brands and sizes. The raw materials used are recycled Polypropylene (PP) type of plastic raw materials to reduce mat production costs. There are several criteria that must be considered in determining suppliers including price, delivery, capability, and flexibility. The company must be careful in making decisions in supplier selection because there are several criteria that must be considered simultaneously. Therefore, in this paper, a decision-making tool is provided to solve the sustainable supplier selection in multi-item and multi-supplier environment. At first, one of the efficient Multiple Criteria Decision Making (MCDM) approaches called Best Worst Method (BWM) is used to determine the weight of each criterion, where the weight will be used in the evaluation of each supplier to select the most appropriate supplier using the Technique For Reference Orders By Similarity To Ideal Solution (TOPSIS) method. The results of this research can help managers in this plastic industry to deal with the sustainable supplier selection problem. Furthermore, the presented approach in this research can assist managers of other industries to select and evaluate their suppliers.