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An Inverse Optimization Approach for Studying Sustainability Preferences in Sourcing Decisions
Kellner, Florian
and Utz, Sebastian
(2024)
An Inverse Optimization Approach for Studying Sustainability Preferences in Sourcing Decisions.
Journal of Cleaner Production 483, p. 144305.
Date of publication of this fulltext: 29 Nov 2024 11:13
Article
DOI to cite this document: 10.5283/epub.58218
Abstract
Throughout many societies around the globe, there is growing awareness of the urgent need for the transition towards a sustainable economy. Research shows that buying firms have substantial leverage to initiate sustainable development by controlling the sustainable performance of their suppliers. In that context, this article presents a novel methodology based on inverse optimization to derive ...
Throughout many societies around the globe, there is growing awareness of the urgent need for the transition towards a sustainable economy. Research shows that buying firms have substantial leverage to initiate sustainable development by controlling the sustainable performance of their suppliers. In that context, this article presents a novel methodology based on inverse optimization to derive the implicit preferences of decision-makers in the trade-off between traditional sourcing objectives and sustainability in the supplier selection and order allocation process. The derived implicit preferences can then be used for further analyses to gain a better understanding of the characteristics of purchasing managers and sourcing situations that come with particularly high/low preferences placed on sustainability. Since the inverse optimization approach is computationally resource-intensive and consumes a significant amount of time, we present a scalable state-of-the-art cloud architecture that allows solving an arbitrary number of optimization programs in an acceptable amount of time. We demonstrate the feasibility of the proposed methodology in a real-world case. In doing so, we test how important sustainability aspects are in the supplier selection and order allocation decisions of one of the world's largest automotive parts manufacturers.
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Details
| Item type | Article | ||||
| Journal or Publication Title | Journal of Cleaner Production | ||||
| Publisher: | Elsevier | ||||
|---|---|---|---|---|---|
| Volume: | 483 | ||||
| Page Range: | p. 144305 | ||||
| Date | 26 November 2024 | ||||
| Institutions | Business, Economics and Information Systems > Institut für Betriebswirtschaftslehre > Lehrstuhl für Controlling und Logistik (Prof. Dr. Andreas Otto) | ||||
| Identification Number |
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| Keywords | Supplier selection Order allocation Sourcing decisions Sustainability Inverse optimization | ||||
| Dewey Decimal Classification | 300 Social sciences > 330 Economics | ||||
| Status | Published | ||||
| Refereed | Yes, this version has been refereed | ||||
| Created at the University of Regensburg | No | ||||
| URN of the UB Regensburg | urn:nbn:de:bvb:355-epub-582180 | ||||
| Item ID | 58218 |
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