Sourcing

Supply Chain Optimization

Situation

Two suppliers feed the same product line. Supplier A has lower unit cost but limited capacity and higher carbon intensity. Supplier B is more expensive, cleaner, and more reliable. Both feed a shared assembly step.

Decision

What sourcing split meets fulfillment while staying inside budget, supplier capacity, assembly capacity, and carbon policy?

How we modeled it

Product demand branches into Supplier A and Supplier B paths, then merges into assembly and fulfilled output. Supplier paths carry unit cost, capacity, and carbon rates. Constraints cap fulfillment, budget, supplier volume, assembly throughput, and carbon, so the solve returns the feasible mix and its policy premium.

What the model shows

Mix under current limits20k A / 15k B

Fulfillment under current limits35k units/month

Policy cost+$7/unit vs lowest-cost plan

Active limits

Supplier A at capacity
Carbon cap 82% used

What this shows

The lowest-cost all-A plan exceeds carbon policy. The feasible mix sources more from Supplier B and stays within the commitment.

Lowest-cost plan (all Supplier A) exceeds the carbon commitment.

The feasible plan splits sourcing at a $7/unit premium and preserves fulfillment.

If carbon policy tightens further, Supplier B share grows and unit cost rises with it.

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