Modelling Sustainable Procurement: A Case of Indian Manufacturing Firm

摘要

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.