21. Green Procurement Decisions under Business Volume Discounts

—Nasr-Eddine Dahel, Graduate School of International Policy and Management, Monterey Institute of International Studies, 460 Pierce St., Monterey, CA 93940 USA


Environmental sustainability of a supply chain depends to a large extent on its underlying procurement strategy. This paper presents an approach for selecting the vendors to employ and determining the order quantities to allocate to them while taking into consideration the objectives of cost, quality, delivery reliability, and carbon emission of the purchased items. We consider a multiple-product, multiple-supplier competitive sourcing environment in which the vendors offer discounts on total amount of sales volumes, ...

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