Optimization for a Sustainable Supply Chain Using Fuzzy VIKOR Method: An Application on a Real Dataset

One of the main themes leading to a green economy is the sustainable supply chain, which creates the chance to lower carbon emissions all the way up the product value chain. Using a pharmaceutical company as a case study, this investigation explores optimized sourcing practices and proposes a methodology to help in selecting the best green supplier and place orders with potential suppliers. There is a two-phase hybrid method in the suggested model. The Fuzzy VIKOR (Fuzzy VIseKriterijumska Optimizacija I Kompromisno Resenje) methodology is used in the first phase to rate and select possible suppliers based on social, environmental, and economic factors (such as late delivery times and freight costs). The second phase describes an order allocation procedure based on (MOLP) multi-objective linear programming that aims to minimize costs, delivery delays, and greenhouse gas emissions during transportation. Using
$\epsilon $
-constraint method we apply MOLP model to optimize more than one objective in order to convert two objectives into single objective function. Forming such a model is helpful for the manufacturing unit to evaluate green supplier and allocate order, as illustrated by a case study of a pharmaceutical manufacturing facility. Three suppliers are evaluated who used ocean, air and truck as their mode of transportation. Using Fuzzy VIKOR technique suppliers are evaluated and it is observed that the ‘suppliers who supply medicines through ship is the best supplier. It is observed that transportation via ocean is more environment friendly in comparison of truck and airplane.