Abstract:
Supplier selection is one of the most important multi-criteria problems in supply chain management (SCM). Most of the existing decision-making frameworks for selecting suppliers in the construction industry have given priority to criteria such as cost, delivery, and quality. However, due to the current emphasis on achieving sustainability and reducing the impact on the environment, organizations are increasingly embracing circular economy (CE) principles. In this study, thereby, we proposed an integrated multiple-criteria decision-making (MCDM) framework, which comprises of fuzzy analytical hierarchy process (FAHP) and preference ranking organization method for enrichment of evaluations II (PROMETHEE II), for circular supplier selection in the construction industry from the perspective of the emerging economy countries. In the proposed framework, FAHP was used to identify the weight of each criterion and sub-criteria and later, PROMETHEE II was used to rank the suppliers from best to worst. Results showed that on time delivery, conformance to specifications, and rejection rate are the top three criteria for supplier selection. Additionally, the top three circular supplier selection criteria included pollution control initiatives, green packaging, and responses towards environmental regulations and standards. The result of this approach has been compared with another MCDM method, namely weighted aggregated sum product assessment (WASPAS) method, which validates the accuracy and efficiency of the proposed approach. Through the implementation of circular supplier selection, the proposed research is expected to reinforce circular supply chain, which can help managers of the construction sector to improve sustainability of their overall business.