Low-carbon and Economic Supplier Selection Using Life Cycle Inventory Database by Asian International Input-Output Tables

Abstract

Assembly supply chains have been configured globally including not only developed countries but also emerging countries such as Asian countries, for example, Malaysia and China. On the other hand, it is necessary for global warming to pursue lower greenhouse gas (GHG) emissions in the global supply chain. Supplier selections, which select appropriate suppliers for appropriate purposes, should be decided by considering not only procurement costs but also the GHG emissions if they can be estimated. In addition, each part has a different procurement cost by the suppliers while their GHG emissions depend on each country and types of materials. Thus, it enables the global supply chain to harmonize the GHG emissions and the costs by procuring the parts from the different Asian countries. This study proposes a low-carbon and economic supplier selection with an estimation method of the GHG emissions for each part using the developed LCI database among Asian countries, and conducts a material based analysis for the both of the procurement costs minimization and the GHG emissions reduction.