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Modelling sustainable procurement problem: a goal-based approach

Author

Listed:
  • Harpreet Kaur
  • Surya Prakash Singh

Abstract

Sustainable procurement problem not only considers traditional parameters such as purchasing cost, ordering cost, holding cost, and logistics cost but also considers non-traditional parameters such as carbon emission cost, thus, making it a multi-objective optimisation problem. However, in competitive business scenario, organisations have also some set targets for various traditional and non-traditional parameters making the procurement process a goal oriented one. These goals in turn make the overall procurement problem conflicting while the organisation tries to achieve all these goals with minimum deviations. Therefore, this paper is a novel attempt to optimise multi-objective sustainable procurement problem (MoSPP) in presence of various goals using goal programming approach and is referred as Multi_Goal_SPP. The goals for goal programming formulation are computed through MoSPP. The methodology is demonstrated through two illustrative examples solved in LINGO 10. Multi_Goal_SPP establishes optimal trade-off between conflicting goals set by organisation. The proposed model ensures the minimum total deviation from goals required to meet specified demand.

Suggested Citation

  • Harpreet Kaur & Surya Prakash Singh, 2019. "Modelling sustainable procurement problem: a goal-based approach," International Journal of Operational Research, Inderscience Enterprises Ltd, vol. 35(4), pages 447-469.
    • Handle: RePEc:ids:ijores:v:35:y:2019:i:4:p:447-469
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