A study on green supplier selection in dynamic environment

Abstract

The aim of this paper is to provide a method for selecting a green supplier in a dynamic environment, while considering the psychological behavior and the time factors of the decision maker from the manufacturer's perspective. The supply selection method that is based on the Third Generation Prospect Theory (PT3) is proposed and an optimal ordinal number is obtained. First, the green supplier selection index system is established. Then, the indicators that are given by the manufacturer are used as reference points, and the income and loss matrices are established by calculating the gains and losses of the index values in the interval number relative to the reference points. Next, considering the time factor and calculating the variable weight based on the Gray correlation coefficient method and the time weight of the penalty mechanism method, the suppliers are chosen based on the comprehensive prospect value. Finally, the validity and the feasibility of the method are proven through a case analysis.