Sustainable supply chains based on supplier selection and HRM practices

Abstract

Purpose The purpose of this paper is to investigate a supply chain consisting of a producer and multiple suppliers of a type of component needed for the production of a certain product. The effects of carbon emission taxes, quality of components and human inspection errors as well as the collaboration among the supply chain members are considered. Design/methodology/approach A mathematical model is formulated for a non-collaborative supply chain, and the optimal policy is shown to be the solution of a constraint optimization problem. The mathematical model is modified to the case of a collaborative supply chain and to account for inspection errors. Algorithms are provided, and a numerical example is given to illustrate the determination of the optimal policy. Findings This study offers a new conceptual and analytical model that analyzes the production problem from a supply chain perspective. Human resource management practices and environmental aspects were incorporated into the model to reduce risk, optimally select the suppliers and properly maximize profit by accounting for human inspection error as well carbon emission taxes. Algorithms describing the determination of the optimal policy are provided. Practical implications This study provides practical results that can be useful to researchers and managers aiming at designing sustainable supply chains that incorporate economic, environmental and human factors. Originality/value This study can be useful to researchers and managers aiming for designing sustainable supply chains that incorporate economic and human factors.