341. An optimization approach for socially sustainable raw material sourcing in global supply chains
Invited abstract in session TB-42: Sustainable supply chains III, stream Circular & Sustainable Supply Chains.
Tuesday, 10:30-12:00Room: Newlyn GR.02
Authors (first author is the speaker)
| 1. | Lea Franze
|
| Chair of Production and Logistics Management, FernUniversität in Hagen | |
| 2. | Karsten Kieckhäfer
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| Chair of Production and Logistics Management, FernUniversität in Hagen | |
| 3. | Bruna Mota
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| CEG-IST, Instituto Superior Técnico | |
| 4. | Ana Barbosa-Povoa
|
| Departamento de Engenharia e Gestão, Instituto Superior Técnico, Universidade de Lisboa |
Abstract
Due to due diligence requirements, social sustainability receives more attention in global supply chains. In the context of sourcing, companies seek sustainable supply sources, engage in supplier development, or invest in raw material mining projects to meet social standards. However, existing literature on supply chain planning rarely studies and oversimplifies socially sustainable raw material sourcing. To fill this gap, we develop a novel approach to support optimal raw material sourcing, combining social life cycle assessment, activity analysis, and multi-objective optimization. The developed multi-period model decides how much raw material to source from multiple sites with varying levels of costs and social risks. To meet social standards and fulfill demand, different measures are explored: commitment to long-term supply contracts, investment in mining projects, and implementation of social supplier development measures. The net present value of these decisions is maximized in the economic objective function, while social risks are limited by constraints or used as a second objective function. The ε-constraint method is applied to analyze how different objective functions impact sourcing strategies and supplier development measures in the supply chain of lithium-ion batteries. A key question is: Under which conditions is it beneficial to source from suppliers with low social risks and when to implement supplier development measures?
Keywords
- OR in Sustainability
- Supply Chain Management
Status: accepted
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