Title
Incentive compatible green procurement using scoring rules
Abstract
Green or sustainable procurement is critical to any supply chain in the modern era. In this paper, we address the issue of selection of suppliers in order to ensure that the procurement process in a manufacturing or service supply chain selects suppliers so as to minimize carbon emissions. The specific problem we address pertains to that of an orchestrator or a procurement planner who wishes to put together a green procurement network consisting of strategic suppliers. Our approach decomposes the problem into two stages. In Stage 1 (information elicitation), the orchestrator uses a green budget to offer appropriate incentives to the suppliers to report their carbon emissions accurately. The incentives are determined using an approach based on proper scoring rules. Having obtained emissions data in Stage 1, the orchestrator identifies a pool of suppliers in Stage 2 (green supplier selection) to minimize the quantum of carbon emissions of the procurement process. The paper focuses on Stage 1 of the problem and develops an incentive compatible mechanism for elicitation of emission estimates. We illustrate the proposed mechanism with a stylized example and also with detailed simulation results.
Year
DOI
Venue
2013
10.1109/CoASE.2013.6654015
Automation Science and Engineering
Keywords
Field
DocType
environmental factors,incentive schemes,procurement,supply chains,sustainable development,carbon emission quantum minimization,green budget,green supplier selection,incentive compatible green procurement,information elicitation,scoring rules,strategic suppliers,supply chain,sustainable procurement
Incentive compatibility,Incentive,Stylized fact,Sustainable procurement,Orchestration,Supply chain,Procurement,Sustainable development,Environmental economics,Business
Conference
ISSN
Citations 
PageRank 
2161-8070
0
0.34
References 
Authors
4
4
Name
Order
Citations
PageRank
Bagchi, D.100.34
Biswas, S.2201.68
Y. Narahari369998.97
Viswanadham, N.427531.60