An integrated method for resilient-sustainable supplier selection based on action-oriented practices

Selecting resilient-sustainable suppliers is a critical decision because it can help reduce the frequency and degree of modern supply chain disruptions. However, most existing supplier selection methods often adopt static performance indicators without reflecting supplier's day-to-day practices. Besides, they overlook the interdependencies between these activities and fail to capture the bounded rationality and ambiguity of supply chain manager's preferences, leading to inaccurate results. To address the problems, this paper develops a new set of action-oriented supplier practices of resilience and sustainability and an integrated approach based on variable precision rough set (VPRS), prospect theory, Choquet integral, and extended Technique for Order Preference by Similarity to an Ideal Solution. Our method integrates the strength of Choquet integral in modelling the interaction relationships between action-oriented supplier practices, the advantages of prospect theory in dealing with bounded rationality of decision-makers, and the superiority of VPRS theory in flexibly handling vagueness. The proposed approach is validated with a case study of selecting resilient-sustainable chip supplier for a communications equipment manufacturer. Comparative analysis, sensitivity analysis and ranking reversal problem are also considered to indicate the superiority, robustness, and validity of the proposed method.