Sharia Management Decision Support System for Halal Supply Chain Supplier Selection

Abstract

The fast growth of the global halal market makes the halal supply chain management more challenging especially on the process of halal supplier selection where there will be operational issues as well as ethical and Sharia compliance considerations. Traditional ways to evaluate suppliers tend to focus on economic performance without halal assurance, ethical and Sharia compliance, traceability, and sustainability perspectives. Hence, the objective of this research paper is to construct a Sharia Management Decision Support System (DSS) for halal supplier selection using Simple Additive Weighting (SAW) method as a Multi-Criteria Decision-Making (MCDM) technique. Ten evaluation criteria included in the model are Halal Certification Compliance, Reputation of Suppliers, Product Quality, Delivery Reliability, Cost Efficiency, Islamic Ethical Compliance, Traceability, Sustainability, Risk Management, and Financial Stability. Computation process includes criterion weighting, normalization of decision matrix, computing of weighted score, and supplier ranking steps. Based on the results, Halal Certification Compliance, Product Quality, and Islamic Ethical Compliance were found to be highly influential criteria in supplier evaluation. Supplier A3 got the highest preference score among other suppliers which means it performs excellently in terms of halal assurance, ethical compliance, and traceability. On theoretical contribution, the study provides insights regarding integration of Sharia Management principles in DSS procurement evaluation frameworks. In terms of methodology, SAW model for halal supplier evaluation was successfully developed. On practical contribution, this study helps improve supplier transparency, procurement accountability, and halal supply chain management. On policy implication, this paper recommends better halal industry regulation, halal assurance system, and sustainable Islamic supply chain management.