Optimal selection and investment-allocation decisions for sustainable supplier development practices
Document Type
Article
Abstract
Organization’s sustainability performance is influenced by its suppliers’ sustainability performance. This relationship makes sustainable supplier development a strategic competitive option for a buyer or focal organization. When considering sustainable supplier development practices (SSDPs) adoption, organizations have to balance and consider their limited financial resources and operational constraints. It becomes necessary to both select the best SSDPs set and investment allocation among the selected SSDP set such that the organization can maximize overall sustainability performance level. In this paper, an integrated formal modeling methodology using DEMATEL, the NK model, and multi-objective linear programming model is used support this objective. The proposed methodology is evaluated in a practical sustainable supply chain field study of an equipment manufacturing company in China. Through case study, we found that the interdependency among SSDPs must be considered in SSDPs selection and investment allocation problem. Theoretical, managerial and methodology implications, conclusions, and directions for future research are also presented. © 2023, The Author(s).
Publication Title
Annals of Operations Research
Publication Date
4-2024
Volume
335
Issue
1
First Page
1
Last Page
31
ISSN
0254-5330
DOI
10.1007/s10479-023-05367-6
Keywords
DEMATEL, enviornmental, investment allocation, multi-objective linear programming, NK model, sustainable supplier development
Repository Citation
Bai, Chunguang; Govindan, Kannan; and Dhavale, Dileep G., "Optimal selection and investment-allocation decisions for sustainable supplier development practices" (2024). School of Management. 200.
https://commons.clarku.edu/faculty_school_of_management/200
Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License.