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Modelling Sustainable Procurement: A Case of Indian Manufacturing Firm

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Advanced Computing and Communication Technologies

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 562))

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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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Correspondence to Surya Prakash Singh .

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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

  1. aMeans that data belongs to set {T 1, T 2, T 3}
  2. bMeans that data belongs to set {S 1, S 2, S 3, S 4, S 5}
  3. cMeans that data belongs to set {M 1, M 2}

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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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  • DOI: https://doi.org/10.1007/978-981-10-4603-2_21

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