Abstract
In today’s dynamic and challenging environment, business decisions are driven not only by cost but also by environmental legislations. In manufacturing industries, procurement is a crucial operation responsible for cost, quality and delivery of final product. Unlike purchasing, procurement involves strategic planning of lot-sizes to be ordered from suppliers and carriers. The paper proposes a sustainable procurement model (SPM) integrating lot-sizing, supplier and carrier selection in a cap-and-trade environment, optimizing cost and carbon emissions. The model is illustrated with the help of a case study of an Indian manufacturing firm procuring raw materials from multiple suppliers using multiple carriers.
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Appendix I
Appendix I
Secondary data for manufacturing firm located at Jalandhar, Punjab
Parts | OC ti | D ti (kg)a | PC b tij | SC tij (*10,000)(kg)b | Suppliers | l c tjm | TC c tim |
---|---|---|---|---|---|---|---|
P 1(40.5) | 1000 | 166458.7, 168123.3, 164794.113 | 68, 74.9, 73.3, 67.2, 85.1 | 36, 18, 12, 60, 9 | S 1 | 1, 2 | 5, 3 |
P 2 (41.2) | 1000 | 1,014,016, 1,024,156, 1003876.008 | 69.63, 70.86, 67.6, 76.6, 88.6 | 180, 120, 90, 30, 60 | S 2 | 3, 4 | 4, 2 |
P 3 (41.5) | 1200 | 14,800, 14,948, 14,652 | 68, 74.9, 73.3, 67.2, 85.1 | 36, 18, 20, 6, 9 | S 3 | 4, 5 | 4, 2 |
P 4 (42.2) | 1200 | 21,000, 21,210, 20,790 | 69.63, 70.86, 67.6, 76.6, 88.6 | 180, 120, 90, 30, 180 | S 4 | 1, 1 | 3, 1 |
P 5 (43.9) | 1400 | 560863.7, 566472.4, 555255.1 | 73.8, 75.5, 76.39, 78.51, 83.41 | 1110, 60, 45, 60, 30 | S 5 | 1, 2 | 7, 4 |
P 6 (45.5) | 1200 | 28,500, 28,785, 28,215 | 82.8, 83.6, 86.45, 84.5, 85 | 36, 18, 120, 6, 9 | Carbon calculation | Others | |
P 7 (45.6) | 1200 | 4375, 4418.75, 4331.25 | 79, 79.8, 82, 81, 80 | 180, 120, 90, 30, 60 | F tm | 0.15, 0.2 | ul t i = 7 |
P 8 (50) | 1000 | 14806.7, 14954.77, 14658.633 | 85, 92.5, 87.5, 91, 92 | 36, 18, 12, 6, 9 | E to | 0.01 | ll ti = 0 |
P 9 (54) | 1200 | 12217.06, 12339.23, 12094.8894 | 95, 96, 99.36, 96, 96 | 180, 120, 90, 30, 60 | E tw | 0.003 | cc Jm = 15, 20 (mtn) |
P 10 (58) | 1000 | 39941.24, 40340.65, 39541.8276 | 101.5, 102, 103.82, 106, 118.9 | 9, 36, 18, 12, 6 | Mil m | 14, 12 | V = 20, 30 |
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Kaur, H., Singh, S.P. (2018). Modelling Sustainable Procurement: A Case of Indian Manufacturing Firm. In: Choudhary, R., Mandal, J., Bhattacharyya, D. (eds) Advanced Computing and Communication Technologies. Advances in Intelligent Systems and Computing, vol 562. Springer, Singapore. https://doi.org/10.1007/978-981-10-4603-2_21
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