A decision framework for solar PV panels supply chain in context of sustainable supplier selection and order allocation

Abstract

Sustainable supplier selection and order allocation (SSSOA) is paramount to sustainable supply chain management. It is a complex multi-dimensional decision-making process augmented with the triple bottom line of sustainability. This research presents a multi-phase decision framework to address a SSSOA problem for the multi-echelon renewable energy equipment (Solar PV Panels) supply chain. The framework comprises of fuzzy Multi-Criteria Decision-Making techniques augmented with fuzzy multi-objective mixed-integer non-linear programming mathematical model. The various economic, environmental, and social objectives were optimized for a multi-period, multi-modal transportation network of the supply chain. The results show that among the various sustainable criteria selected in this study, product cost, environmental management system, and health and safety rights of employees are the most important for decision-makers. The results of the mathematical model highlighted the impact of multimodal transportation on overall cost, time, and environmental impact for all periods. An analysis of results revealed that transfer cost and customer clearance cost contribute significantly towards overall cost. Furthermore, defect rate was also observed to play a critical role in supplier selection and order allocation.