Applying hazardous substance management to supplier selection using analytic network process

Abstract

With increased outsourcing and environmental consciousness, this paper presents an analytic network process (ANP) approach to incorporate the issue of hazardous substance management (HSM) into supplier selection. In this study, identification of criteria of HSM competence is categorized into four dimensions, a multi-criteria decision model is proposed. ANP is then applied to supplier selection and is characterized by interdependencies among decision structure components. An illustrative example in an electronics company is presented to demonstrate how to select a most appropriate supplier in accordance with the requirements of hazardous substance for environmental regulations.