Title: Carbon constrained dual sourcing supplier selection problem: a Benders decomposition approach

Authors: Krishnendu Shaw; Ravi Shankar; Surendra S. Yadav

Addresses: Department of Management Studies, Indian Institute of Technology Delhi, Vishwakarma Bhawan, Shaheed Jeet Singh Marg, New Delhi-110016, India ' Department of Management Studies, Indian Institute of Technology Delhi, Vishwakarma Bhawan, Shaheed Jeet Singh Marg, New Delhi-110016, India ' Department of Management Studies, Indian Institute of Technology Delhi, Vishwakarma Bhawan, Shaheed Jeet Singh Marg, New Delhi-110016, India

Abstract: Carbon constrained supplier selection is a relatively newer concept compared to traditional supplier selection problem. Most of the decision makers face difficulty to select supplier in dual sourcing (global or local) scenarios, which generally have different cost and emission factors. As of now, very few supplier selection models have been proposed taking consideration dual sourcing and carbon footprint issues. This paper proposes a mixed integer-based multi-product, dual (global and domestic) sourcing supplier selection model especially considering carbon emission, carbon cap, costs, tax, quality rejection, lead time, various duties and solved using Benders decomposition algorithm. The proposed model is illustrated through a case study and various sensitivity analyses are performed by varying carbon footprint of material, lead time, supplying capacity and minimum order size. Further, this paper helps managers to decide the amount of domestic as well as global sourcing percentages in a carbon constrained situation.

Keywords: carbon constrained supplier selection; carbon footprint; global supplier selection; dual sourcing; green supply chains; supply chain management; SCM; carbon emissions; carbon cap; costs; tax; quality rejection; lead times; Benders decomposition; supply capacity; minimum order size; domestic sourcing; global sourcing.

DOI: 10.1504/IJLSM.2016.074717

International Journal of Logistics Systems and Management, 2016 Vol.23 No.3, pp.363 - 393

Received: 05 Aug 2014
Accepted: 11 Oct 2014
Published online: 16 Feb 2016 *

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