Paving the Pathway: An Entropy‐Based Combined Compromise Solution Approach to Facilitate the Indian Plastic Industry's Transition Toward a Circular Economy

ABSTRACT The traditional “take‐make‐use‐dispose”‐type economic pattern has led to severe environmental challenges, particularly in the plastic industry, where waste generation and resource inefficiency are of utmost concerns. Transitioning to a circular economy ( CE ) requires strategic supplier evaluation to ensure sustainable sourcing. However, CE implementation in emerging economies remains underexplored, and no established framework exists for circular supplier selection (CSS) in the plastic industry. This study addresses a practical CSS problem faced by a leading Indian plastic manufacturer (the case organization) aiming to partner with an ideal supplier for developing innovative circular products. Through a Delphi study, eight key evaluation criteria were identified and validated. A multi‐criteria decision‐making (MCDM) framework integrating the entropy method (for criteria weighting) and the combined compromise solution (COCOSO) method (for supplier ranking) was applied. The findings reveal that “total consumption of toxic substances” and “reduction in workplace hazards through employee wellbeing activities” are the two most influential CSS criteria. Based on the ranking, the most suitable supplier was recommended to the case organization. This research reinforces supplier selection models by integrating social, environmental, and economic dimensions within a CE context. The novel entropy‐COCOSO framework further improves decision‐making by reducing subjectivity and improving ranking accuracy. Practically, the study provides managers and policymakers with a robust decision‐support tool to facilitate CE adoption in the plastic industry, guiding sustainable procurement strategies.