Using a Product Life Cycle Cost Model to Solve Supplier Selection Problems in a Sustainable, Resilient Supply Chain
Supplier selection constitutes a crucial component of manufacturing procurement. We developed a product life cycle cost (PLCC) model to support Taiwanese light-emitting diode (LED) manufacturers in capacity planning for sustainable and resilient supply chain (SC) management. For firms, supply chain...
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| Vydáno v: | Sustainability Ročník 14; číslo 4; s. 2423 |
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01.02.2022
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| Abstract | Supplier selection constitutes a crucial component of manufacturing procurement. We developed a product life cycle cost (PLCC) model to support Taiwanese light-emitting diode (LED) manufacturers in capacity planning for sustainable and resilient supply chain (SC) management. For firms, supply chain PLCC (SCPLCC) is a key consideration, but relevant evidence is scarce. We applied two types of goal programming, namely multiobjective linear programming and revised multichoice goal programming (RMCGP), to develop a PLCC-based model that minimizes net costs, rejections, and late deliveries. Moreover, we constructed a decision-making tool for application to a case of SC sustainable procurement management in a high-tech Taiwanese LED company. Managers can resolve relevant problems by employing the two approaches of the SCPLCC model with various parameters. The implementation of RMCGP with weighted linear goal programming sensitivity analysis produced sufficient findings, according to a study of five models for practical implications. The primary findings of the current model assist business decision-makers in minimizing PLCC, reducing PLCC cost, minimizing net cost, number of rejections, number of late deliveries, achieving PLCC goals, and selecting the best supplier in the context of sustainable SC development. |
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| AbstractList | Supplier selection constitutes a crucial component of manufacturing procurement. We developed a product life cycle cost (PLCC) model to support Taiwanese light-emitting diode (LED) manufacturers in capacity planning for sustainable and resilient supply chain (SC) management. For firms, supply chain PLCC (SCPLCC) is a key consideration, but relevant evidence is scarce. We applied two types of goal programming, namely multiobjective linear programming and revised multichoice goal programming (RMCGP), to develop a PLCC-based model that minimizes net costs, rejections, and late deliveries. Moreover, we constructed a decision-making tool for application to a case of SC sustainable procurement management in a high-tech Taiwanese LED company. Managers can resolve relevant problems by employing the two approaches of the SCPLCC model with various parameters. The implementation of RMCGP with weighted linear goal programming sensitivity analysis produced sufficient findings, according to a study of five models for practical implications. The primary findings of the current model assist business decision-makers in minimizing PLCC, reducing PLCC cost, minimizing net cost, number of rejections, number of late deliveries, achieving PLCC goals, and selecting the best supplier in the context of sustainable SC development. |
| Audience | Academic |
| Author | Tu, Chang-Shu Tao, Yu-Jwo Lin, Yi-Shyuan Lee, Hsuan-Shih Gan, Guo-Ya |
| Author_xml | – sequence: 1 givenname: Yu-Jwo surname: Tao fullname: Tao, Yu-Jwo – sequence: 2 givenname: Yi-Shyuan surname: Lin fullname: Lin, Yi-Shyuan – sequence: 3 givenname: Hsuan-Shih surname: Lee fullname: Lee, Hsuan-Shih – sequence: 4 givenname: Guo-Ya surname: Gan fullname: Gan, Guo-Ya – sequence: 5 givenname: Chang-Shu orcidid: 0000-0002-9408-8968 surname: Tu fullname: Tu, Chang-Shu |
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| SubjectTerms | Access control Climate change Cost control Decision making Manufacturing Methods Product life cycle Selection methods (Regression analysis) Suppliers Supply chains Sustainability Sustainable development |
| Title | Using a Product Life Cycle Cost Model to Solve Supplier Selection Problems in a Sustainable, Resilient Supply Chain |
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