A data-driven decision-making model for supplier selection in the LARG supply chain management with emphasis on the cultural dimension
Volume 15, Issue 2, Summer 2025, Pages 148-179
https://doi.org/10.48313/jqem.2025.532486.1563
Seyed Jafar Hashemi, Javad Rezaeian, Toraj Mojibi
Abstract Purpose: In today's competitive environment, selecting suitable suppliers plays a pivotal role in enhancing the efficiency and sustainability of supply chains. The LARG supply chain model, as a comprehensive approach, integrates various dimensions in supplier management. However, despite its critical influence on interaction success and supplier selection, the cultural dimension has received limited attention. This study aims to evaluate suppliers within the LARG framework while incorporating the cultural dimension to improve supply chain performance and achieve sustainable competitive advantage.
Methodology: This research developed a data-driven and forward-looking decision-making model for supplier evaluation and selection. First, key criteria were identified through literature review and expert consultation, and weighted using the Fuzzy Best–Worst Method (FBWM). Then, suppliers' efficiency was assessed and ranked using Fuzzy Data Envelopment Analysis (FDEA). Subsequently, the Random Forest algorithm was employed to predict future supplier performance, yielding highly accurate results.
Findings: The initial results highlighted the significance of sub-criteria such as greenhouse gas emission reduction, risk management, quality, and delivery speed in supplier evaluation. In the second phase, supplier efficiency was analyzed under various α-cuts and classified into three performance groups: high, medium, and low. The Random Forest model demonstrated high accuracy in forecasting supplier performance. Moreover, the paired t-test results revealed that incorporating the cultural dimension significantly improves the supplier selection process.
Originality/Value: The proposed model contributes to strategic decision-making by identifying key performance factors, enabling predictive evaluation, and employing robust analytical tools. This approach not only reduces risks and costs but also serves as a practical model for improving supply chain performance in similar industries.