Abstract
Postponement strategy is mainly used to handle the perceived variety and actual variety of product in the most cost effective way. However, postponement strategy has never been used by researchers in procurement to reduce cost and to enhance overall flexibility of the process. This paper gives a new concept of postponement, called procurement postponement, which is considered to be effective for the multi-product, assemble-to-order (ATO) system. A two-stage integrated approach of sustainable procurement and postponement method is proposed for the multi-product ATO production system to deal demand uncertainty, green house gas (GHG) emission, reliability of supply, level of disassembly and social issues of supplier selection with intuitionsitic fuzzy analytic hierarchy (IF-AHP) and multi-objective genetic algorithm (MOGA). Case study of an Indian company is discussed to use the proposed method by cost-emission-decision matrix.
Highlights
Traditional supply chain deals with man, money and material (3M) and the green supply chain deals with man, money, material and environment (3Me)
In 2014, Ceres conducted the research to measure to what extent more than 600 of the largest, publicly traded U.S companies are integrating sustainability into their business systems and decision-making to develop the supplier self-assessment questionnaire (SAQ) to form the foundation of sustainable of supply chain
analytic hierarchy process (AHP) is one of the most cited multi-criteria decision analysis (MCDA) tool (Mukherjee, 2014a) and the fuzzy version of integrated AHP is mostly used for supplier selection to deal with uncertainties of the supplier selection process (Mukherjee, 2014b)
Summary
Traditional supply chain deals with man, money and material (3M) and the green supply chain deals with man, money, material and environment (3Me). Sustainable procurement process (SPP) should include recycling of disposed product to improve sustainability of supply chain (Geyer & Jackson, 2004). In 2010, Tesco developed Tesco Knowledge Hub to share knowledge with suppliers and agricultural producers to develop sustainable supply chain to reduce the energy costs, waste and environmental impacts of the products Tesco buys to achieve thirty percent reduction of carbon emissions from the company’s supply chain by 2020, compared to 2006-07 levels. The complexity of production process can be avoided by manufacturing a base product or core product as per aggregate demand and auxiliary parts/components can be manufactured and assembled after the receipt of customer demand This approach can reduce cost, lead time and the complexity of logistics and inventory. In this paper an integrated approach of procurement postponement and sustainable procurement process is discussed in light of a case study of an Indian company.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
