Analysis of Sustainable Procurement in SMEs in Developing Countries

  Krishnendu Mukherjee

The purpose of the paper is to integrate supply base consolidation, rationalization, and buyer’s perspective about its suppliers to reveal more insight to implement sustainable procurement in small and medium enterprises (SMEs) in developing countries like India. Structured questionnaire were designed based on the discussions with industrial practitioners and was used to collected data. Secondary resources were also considered for collection of data. In this paper an attempt has been made to integrate Constrained Optimization of Frobenius Norm by Genetic Algorithm (COFGA) with traditional spend, and value risk analysis to consolidate and rationalize supply base w.r.t fifteen triple bottom line indicators (TBL).Inherent characteristics of multiple criteria decision analysis are to generate quality data through brain storming group discussions and it is extremely effective in limited data environment. In this paper a multiple criteria decision analysis approach is developed, known as Constrained Optimization of Frobenius Norm by Genetic Algorithm (COFGA). This paper shows that spend analysis is justified in crisp domain and becomes myopic in limited data environment. Spend analysis becomes more ineffective to imprecise and vague qualitative data. Integrated approach of multiple criteria decision analysis, spend analysis, and value risk analysis, thus, an alternative approach to give better insight to sustainable procurement in fuzzy environment.

Keywords- Sustainable supplier selection; small and medium enterprises (SMEs); genetic algorithm(GA);spend analysis; triple bottom line (TBL); multiple criteria decision analysis; value risk analysis

Unique Identification Number - IJEDR1901091
Page Number(s) - 509-519
Pubished in - Volume 7 | Issue 1 | March 2019
DOI (Digital Object Identifier) -   
Publisher - IJEDR (ISSN - 2321-9939)

  Krishnendu Mukherjee,   "Analysis of Sustainable Procurement in SMEs in Developing Countries", International Journal of Engineering Development and Research (IJEDR), ISSN:2321-9939, Volume.7, Issue 1, pp.509-519, March 2019, Available at :http://www.ijedr.org/papers/IJEDR1901091.pdf