Dynamic sustainability requirements of stakeholders and the supply portfolio

Chowdhury, MMH; Paul, SK; Sianaki, OA; Quaddus, MA

Dynamic sustainability requirements of stakeholders and the supply portfolio

Chowdhury, MMH Paul, SK Sianaki, OA Quaddus, MA

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Publisher:: Elsevier BV
Publication Type:: Journal Article
Citation:: Journal of Cleaner Production, 2020, 255, pp. 120148-120148
Issue Date:: 2020-05

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Field	Value	Language
dc.contributor.author	Chowdhury, MMH
dc.contributor.author	Paul, SK
dc.contributor.author	Sianaki, OA
dc.contributor.author	Quaddus, MA
dc.date.accessioned	2020-10-02T05:57:12Z
dc.date.available	2020-10-02T05:57:12Z
dc.date.issued	2020-05
dc.identifier.citation	Journal of Cleaner Production, 2020, 255, pp. 120148-120148
dc.identifier.issn	0959-6526
dc.identifier.issn	1879-1786
dc.identifier.uri	http://hdl.handle.net/10453/143021
dc.description.abstract	© 2020 Elsevier Ltd Extant literature on sustainability in procurement and supplier selection suffers from a number of deficiencies. First, studies pertaining to the dynamic nature of stakeholders’ expectations of sustainability and its impact on determining a supply portfolio have not been studied before. Second, there is a genuine lack of study linking the stakeholders’ sustainability requirements, firm procurement strategies, and eventual supplier selection. Third, most of the existing studies address sustainability issues in procurement and supplier selection but fall short of determining an optimal portfolio of suppliers and corresponding optimal order quantities. This study addresses the above research gaps by developing a sustainability-focused multi-criteria decision model for supplier evaluation and determining optimal order allocation among the suppliers linking the stakeholders’ sustainability requirements and firm procurement strategies. Based on dynamic capability theory, we develop a decision support framework integrating multi-phased quality function deployment and dynamic optimization. We apply the decision support framework to a European apparel company which sources apparel from Bangladesh: a country that is a low cost sourcing destination. First, this study identifies the stakeholders’ sustainability requirements. It then explicates the company's procurement strategies in terms of stakeholders’ requirements followed by translating the procurement strategies to relevant supplier assessment criteria. Finally, a linear optimization model is developed to maximize the suppliers’ sustainability performance in order to determine the optimal supply portfolio. The results identify two distinct groups of suppliers satisfying the overall sustainability performance. However the optimal order quantities among the suppliers vary randomly depending on the variations in demand and priority weights of the suppliers. The paper concludes with a detailed discussion of the results and implications.
dc.language	en
dc.publisher	Elsevier BV
dc.relation	University of Technology Sydney
dc.relation	APICS
dc.relation.ispartof	Journal of Cleaner Production
dc.relation.isbasedon	10.1016/j.jclepro.2020.120148
dc.rights	info:eu-repo/semantics/closedAccess
dc.subject	0907 Environmental Engineering, 0910 Manufacturing Engineering, 0915 Interdisciplinary Engineering
dc.subject.classification	Environmental Sciences
dc.title	Dynamic sustainability requirements of stakeholders and the supply portfolio
dc.type	Journal Article
utslib.citation.volume	255
utslib.for	0907 Environmental Engineering
utslib.for	0910 Manufacturing Engineering
utslib.for	0915 Interdisciplinary Engineering
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
pubs.organisational-group	/University of Technology Sydney/Faculty of Business/Management Discipline
pubs.organisational-group	/University of Technology Sydney
utslib.copyright.status	closed_access	*
pubs.consider-herdc	true
dc.date.updated	2020-10-02T05:56:47Z
pubs.publication-status	Published
pubs.volume	255

Abstract:

© 2020 Elsevier Ltd Extant literature on sustainability in procurement and supplier selection suffers from a number of deficiencies. First, studies pertaining to the dynamic nature of stakeholders’ expectations of sustainability and its impact on determining a supply portfolio have not been studied before. Second, there is a genuine lack of study linking the stakeholders’ sustainability requirements, firm procurement strategies, and eventual supplier selection. Third, most of the existing studies address sustainability issues in procurement and supplier selection but fall short of determining an optimal portfolio of suppliers and corresponding optimal order quantities. This study addresses the above research gaps by developing a sustainability-focused multi-criteria decision model for supplier evaluation and determining optimal order allocation among the suppliers linking the stakeholders’ sustainability requirements and firm procurement strategies. Based on dynamic capability theory, we develop a decision support framework integrating multi-phased quality function deployment and dynamic optimization. We apply the decision support framework to a European apparel company which sources apparel from Bangladesh: a country that is a low cost sourcing destination. First, this study identifies the stakeholders’ sustainability requirements. It then explicates the company's procurement strategies in terms of stakeholders’ requirements followed by translating the procurement strategies to relevant supplier assessment criteria. Finally, a linear optimization model is developed to maximize the suppliers’ sustainability performance in order to determine the optimal supply portfolio. The results identify two distinct groups of suppliers satisfying the overall sustainability performance. However the optimal order quantities among the suppliers vary randomly depending on the variations in demand and priority weights of the suppliers. The paper concludes with a detailed discussion of the results and implications.

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http://hdl.handle.net/10453/143021