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Abstract
The development of Iran's economy depends heavily on the steel industry, which serves as the foundation for many infrastructures, manufacturing, and building projects. Ensuring a sustainable and consistent supply of raw materials becomes crucial as the demand for steel rises. Iran's steel industry must carefully consider a number of criteria, including as resource availability, geopolitical stability, environmental restrictions, and long-term collaborations, when choosing sustainable supply nations.
Research significance: Supply chain (SC) managers have a significant problem with supplier selection, a multi-criteria decision-making dilemma that heavily depends on the decision makers' vision. Recent emphasis has been placed on SC sustainability, which considers the environmental, economic, and social elements of SC, in the evaluation process that SC managers through. Suppliers are crucial in building a sustainable SC because they are the foundational elements of the SC. Therefore, the primary goal of this study is to establish the analytical hierarchy process's weights for the sustainability criteria. The study's second objective is to assess suppliers using four primary factors: CO2 emissions, the number of workers in the industry in the supplier's country, water usage, and distance from the supplier's country to the final destination. Finally, sensitivity analysis has been conducted using the various sustainability criterion weights. Managers in the steel sector can use the findings of this study to address the macro-level supplier selection issue. The research's suggested approach can also help managers of other sectors choose and assess their suppliers.
Methodology: In this paper the DEMATEL is used for the assessment of sustainable supplier countries for steel industries.
Parameters Evaluated: Quality, cost of production, lead time, reputation supplier, transport cost is used to optimize sustainable supplier countries for steel industries.
Result: Quality has an Ri + Ci value of 9.739269 and a Ri - Ci value of 0.678325. It is ranked 1, indicating that it has the greatest combined influence and impact among the factors. Quality is classified as a cause within the system. Similarly, Cost of production has an Ri + Ci value of 9.443031 and a Ri - Ci value of -0.19979. It is ranked 2 and categorized as an effect within the system. Lead time has an Ri + Ci value of 8.06006 and a Ri - Ci value of -0.96732. It is ranked 5 and considered an effect. Reputation supplier has an Ri + Ci value of 8.422893 and a Ri - Ci value of -0.41017. It is ranked 4 and classified as an effect. Transport cost has an Ri + Ci value of 9.004593 and a Ri - Ci value of 0.898958. It is ranked 3 and identified as a cause.
Quality stands out as a significant cause with a high Ri + Ci value and a positive Ri - Ci value, ranking first. Cost of production is more influenced as an effect, with a lower Ri + Ci value and a negative Ri - Ci value, ranking second. Lead time is ranked fifth as an effect, with a relatively lower Ri + Ci value and a negative Ri - Ci value. Reputation supplier is ranked fourth as an effect, with an Ri + Ci value and a negative Ri - Ci value. Transport cost is a significant cause, positioned at rank three with an Ri + Ci value and a positive Ri - Ci value. Analyzing these values aids decision-makers in understanding the relative influence, impact, and roles of each factor, facilitating processes such as prioritization and resource allocation.