International Research Journal of Engineering and Technology (IRJET) e-ISSN: 2395 -0056 Volume: 03 Issue: 04 | Apr-2016 www.irjet.net p-ISSN: 2395-0072 © 2016, IRJET | Impact Factor value: 4.45 | ISO 9001:2008 Certified Journal | Page 2368 Green Supplier Selection for Indian Cement Industry: AHP based approach Deepesh Giri Sharma 1 , A. M. Rawani 2 1 Mechanical Engineering Department, Central college of Engineering and Management, Raipur (C.G.), 492 099, India 2 Mechanical Engineering Department, National Institute of Technology, Raipur (C.G.), 492 001, India ---------------------------------------------------------------------***--------------------------------------------------------------------- Abstract - Green Supplier Selection (GSS) is an important procurement activity. Selecting suppliers considering the green criteria is known as Green Supplier Selection. Environment consciousness in manufacturing has moved the procurement of materials, good and services towards adopting green practices. Analytical Hierarchy Process (AHP) is multi criteria decision making technique which has been applied for solving many complex problems in decision making. Research studies have focused in incorporating many relevant and new criteria for decision making in manufacturing environment using AHP. This research paper incorporates Analytical Hierarchy Process in developing GSS model. The developed model is applied in selecting the suppliers considering the relevant Green, Corporate Social Responsibility (CSR) and Safety criteria. Key Words: Analytic Hierarchy Process, Green Criteria, Green Supplier Selection. 1. INTRODUCTION Green Supplier Selection (GSS) process ensures that buyer is purchasing the products with no harmful impacts on the environment. The word ǮGreenǯ has become synonyms of environmental considerations. In manufacturing industries, there is always a want for innovative practices to retard the competition and to satisfy the appetite of growth. GSS is one of the innovative practices in the procurement function of the production industries. Incorporation of green criteria in supplier selection is due to many reasons and not limited to profits. Some of them are legal and social bindings. Green activities of the suppliers, along with safe business practices and CSR activities have been considered as GSS criteria in this research paper. Cement manufacturers of India are facing challenges in the supply of raw materials. The Granulated Blast Furnace Slag (GBFS) is one of such raw material. In this research paper model for Green Supplier Selection has been proposed and applied in selecting the suppliers of the Granulated Blast Furnace Slag for the two Indian cement manufacturing industries namely ACC Limited and Ambuja Cement Limited. 2. LITERATURE REVIEW Any of the decision making related with supplier selection starts with identifying the factors which affects this decision making considerably. Dickson in his study has identified twenty three factors that should be considered for selecting the suppliers [1]. Sustainability related factors in the analysis of the supply chain have been considered by Wood DJ [2]. While, Gupta [3] suggests that, the environmental issues have become important factors for the manufacturing industries for managing its supply chain. According to them, organizations are now at the advanced stage of managing their supply chain; in which environmentally conscious firms, mainly larger companies, are developing environmental programs aimed at organizing their supply chains. Integrating environmental management techniques along the supply chain is an appropriate method of improving the environmental performance of an industry. Over the last few years, organizations have responded to this challenge by implementing a number of programs [4]. The word environment at this advanced stage has changed and popularly accepted as ǮGreenǯ. The supply chain management considering environmental issues is being known as Green Supply Chain Management and the supplier selection considering the environment related factors are being known as Green Supplier Selection. The purchasing and supply management is a very important activity in a supply chain. There are limited numbers of focused studies in the field purchasing and supply management and this area will be of high potential in the coming ten years [5]. The green parameters in the purchasing and supply management help to convert the supply chain management into green supply chain management. The supplier selection is a multiple criteria decision- making problem affected by several conflicting factors [6]. Great environmental challenges, such as global warming, have demanded greater organisational concern regarding their environmental management [7]. In order to improve their relations with the environment, organizations must contribute towards a reduction in environmental impacts from their supply chains, by demanding improvements in their supplierǯs environmental performance [ͺ]. Supplier selection and evaluation is the process of finding the