Using a Product Life Cycle Cost Model to Solve Supplier Selection Problems in a Sustainable, Resilient Supply Chain

Yu-Jwo Tao, Yi-Shyuan Lin, Hsuan-Shih Lee, Guo-Ya Gan and Chang-Shu Tu
Additional contact information
Yu-Jwo Tao: Graduate Institute of Technological & Vocational Education, National Taipei University of Technology, Taipei 10608, Taiwan
Yi-Shyuan Lin: Graduate Institute of Technological & Vocational Education, National Taipei University of Technology, Taipei 10608, Taiwan
Hsuan-Shih Lee: Department of Shipping and Transportation Management, National Taiwan Ocean University, Keelung 20224, Taiwan
Guo-Ya Gan: College of Auditing and Evaluation, Nanjing Audit University, Nanjing 211815, China
Chang-Shu Tu: Department of Information Management, Chang Gung University, Taoyuan City 33302, Taiwan

Sustainability, 2022, vol. 14, issue 4, 1-22

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.

Keywords: supplier selection; product life cycle cost; geometric mean weighting; penalty weighting; multiobjective linear programming; revised multichoice goal programming (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.mdpi.com/2071-1050/14/4/2423/pdf (application/pdf)
https://www.mdpi.com/2071-1050/14/4/2423/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:14:y:2022:i:4:p:2423-:d:753900

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().