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

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  • Yu-Jwo Tao

    (Graduate Institute of Technological & Vocational Education, National Taipei University of Technology, Taipei 10608, Taiwan
    Department of Business, National Open University, Taipei 10607, Taiwan
    Department of Business Administration, National Taiwan University of Science and Technology, Taipei 10607, 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
    Department of Information Management, Ming Chuan University, Taipei 11103, 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)

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.

Suggested Citation

  • Yu-Jwo Tao & Yi-Shyuan Lin & Hsuan-Shih Lee & Guo-Ya Gan & Chang-Shu Tu, 2022. "Using a Product Life Cycle Cost Model to Solve Supplier Selection Problems in a Sustainable, Resilient Supply Chain," Sustainability, MDPI, vol. 14(4), pages 1-22, February.
  • Handle: RePEc:gam:jsusta:v:14:y:2022:i:4:p:2423-:d:753900
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    References listed on IDEAS

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    1. Koc, Kerim & Ekmekcioğlu, Ömer & Işık, Zeynep, 2023. "Developing a probabilistic decision-making model for reinforced sustainable supplier selection," International Journal of Production Economics, Elsevier, vol. 259(C).

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