Decision-Making in Green Supply Chains

This assignment focuses on decision-making strategies within the context of green supply chains. Students are tasked with examining various models and approaches used for selecting suppliers and allocating orders in a manner that minimizes environmental impact. The provided readings delve into topics such as supplier evaluation, order fulfillment optimization, ethical considerations, and the integration of sustainability into organizational practices.

Decision-making situation

Table of Contents
Part 2.....................................................................................................................................................3
Introduction ..........................................................................................................................................3
Alternative 1..........................................................................................................................................3
Alternative 2..........................................................................................................................................7
Alternative 3........................................................................................................................................10
Part 3...................................................................................................................................................14
Conclusion and Recommendation ......................................................................................................21
REFERENCES.........................................................................................................................................23

Part 2
Introduction
Decision making is a process of identify various alternatives, and selecting the most suitable
option among them (Aguirre-Rodriguez, Bosnjak and Sirgy, 2012). Construction project one
of the most challenging and competitive task for a company because it involves various
aspects such as planning, budgeting, cost estimation, resources management etc. The present
report is based on SHAM ASIA PACIFIC CONSTRUCTION GROUP which is Australian
construction company which building different types of housing and commercial projects. In
this report, there are different aspects such as cosh inflow and outflow, work breakdown
structure, cost estimation and other aspects. The main purpose of this report is to make an
appropriate decision making which provide profit the company.
Alternative 1
Cash Flow: There are two types of cash flow given in this project:
Inflow:
Outflow: SHAM ASIA PACIFIC CONSTRUCTION GROUP required that to identify its
cash outflow of their alternative one. These are:
Cost items Cost in $
Engineering
Design
Commission
Project management
90000
20000
80000
Purchases
Concrete
Steel
Metal
Glass
Piping
Electric
Wood
Other cost
380000
20000
30000
15000
5000
2000
10000
8000
290000
Construction
Labour charges
Electricity and Power
Insurance and legal expenses
285000
80000
15000
50000

Others 140000
Contingency 40000
Total 895000
Work Break down structure:
WBS one of the most usable tool to divide a complex project and increase project efficiency
and its effectiveness. According to the given case in the first alternative a company can divide
the major project in to two parts. Ground floor having separate work which helps to
implement the overall project in an effective manner (Bateman, Valentine and Rittenburg,
2013).

Cost estimation: Cost estimation in the construction project is one of the complex and
competitive task which involves various factors. For the cited company, they need to estimate
their project in a manner and forecast the budget for a suitable bidding. There are different
types of cost involves in a project which required to understand and set the margin which can
be easily recovered. As per the alternative one, the following cost involves in project which
are mentioned below:
Similar project: This is the best references for a company is to understand the overall project
cost. Cited firm already constructed a variety of project which can be used by the company
(Craft, 2013).
Planning cost: This is one of the major cost involves in a project which required to plan in
advance. In the case of alternative one the planning cost will be 25 percent of the total cost. In
this way, the planning cost of this project is 237000 approx. This is further divided in to
variety of cost such as deign, plan, project management etc.
Legal cost: This is another cost which is related with the approved cost from government
authorities and etc. such types of cost in a construction project is depending on the nature and
scope of the project. The minimum legal and other consultant fee will be approx. 25 percent
of the overall cost.
Material cost: This is one of the major expenses in any project which need to estimate in an
effective manner. For the project one the cost of $380000 which already given in the previous
part of this report.
Wage cost: These charges are related with the labour fee which is also having large influence
of a construction project. On the basis of given case this cos is approx. $80000.
Cost of equipment: There are various equipment are used in a construction site which also
need to consider (Ford and Richardson, 2013). There is heavy machinery which cannot
available for a company and needs to be hire from another party. These cost are very not
large and depending on the project time frame.
Schedule of work: This is another aspect where construction company required to plan their
all activities in advance so that they can complete its project in a limited time frame.

Figure 1 Gantt Chart
Figure 2: Activities
Figure 3: Network Diagram
Risk matrix and solution: It is essential for a company is required to make a plan for their
risk in advance which can overcome potential threat on their project in an effective manner.

There is various risk associated with the project which must be minimised and develop an
appropriate solution.
Risk matrix for alternative one:
Degree of
risk
Human
health
Environmenta
l impact
Technical
damage
Financial
impact
Schedule
impact
Very high Site
evacuation
Long term
damages
Extensive
damage
1000 100%
High Multiple
injuries
Temporary
damages
Major
damage
5500 50%
Moderate Severe
injuries
Moderate
damages
Moderate
damage
3000 30%
Low Minimum
injury
Minor damages Minor
damage
1500 10%
Alternative 2
Cash Flow: There are two types of cash flow given in this project:
Inflow: This is one of the most significant for a company to analyses its cash inflow, in the
context of construction company they need to arrange finance from its external sources such
as Banks.
Outflow: SHAM ASIA PACIFIC CONSTRUCTION GROUP required that to identify its
cash outflow of their alternative one. These are:
Cost items Cost in $
Engineering
Design
Commission
Project management
220000
80000
50000
90000
Purchases
Concrete
Steel
Metal
Glass
Piping
Electric
Wood
Other cost
410000
50000
30000
25000
8000
1000
7000
10000
279000
Construction
Labour charges
Electricity and Power
285000
70000
25000

Insurance and legal expenses
Others
55000
140000
Contingency 28000
Total 915000
Work Break down structure: This is one of the most critical tool where project manager
required to divide the work in to small parts resources for them. In SHAM ASIA PACIFIC
CONSTRUCTION GROUP, they required to use such approach and divide their alternative
one in to following parts:
Cost estimation: There are following cost involves:

Planning cost: In the case of alternative two, the planning cost will be $220000 approx.
which is 15 percent more than alternative one.
Legal cost: This is one of the major contribution in a construction project where more than 30
percent cost incurred of total cost. Because, the impact of these cost is very crucial for a
company. For the alternative 2 this cost will be more than 20 percent and cited firm need to
minimised in an effective manner.
Material cost: In the case, for alternative two material purchase will be more than $410000
which is quite lower than the alternative one.
Labour cost: In the context of alternative 2, the labour charges are lower than approx. $70000
due to reduction in various facilities.
Other cost: There are other expanse also incurred in a report which required to identify and
analyses in an effective manner.
Cost of equipment: The cost of equipment will be same as per the alternative one and the
changes are depending on the project time frame.
Schedule of work: The schedule of project 2 is mentioned below:
Figure 4: Gantt Chart

Figure 5: Activity
Figure 6: Network Diagram
Risk matrix and solution:
Degree of
risk
Human
health
Environmenta
l impact
Technical
damage
Financial
impact
Schedule
impact
Very high Site
evacuation
Long term
damages
Extensive
damage
2000 90%
High Multiple
injuries
Temporary
damages
Major
damage
4500 40%
Moderate Severe
injuries
Moderate
damages
Moderate
damage
2800 35%
Low Minimum
injury
Minor damages Minor
damage
1800 20%
Alternative 3
Cash Flow: There are two types of cash flow given in this project:

Inflow: This is one of the most significant for a company to analyses its cash inflow, in the
context of construction company they need to arrange finance from its external sources such
as Banks.
Outflow: SHAM ASIA PACIFIC CONSTRUCTION GROUP required that to identify its
cash outflow of their alternative one. These are:
Cost items Cost in $
Engineering
Design
Commission
Project management
215000
90000
40000
85000
Purchases
Concrete
Steel
Metal
Glass
Piping
Electric
Wood
Other cost
428500
60000
25000
25000
6000
1500
6000
15000
290000
Construction
Labour charges
Electricity and Power
Insurance and legal expenses
Others
305000
60000
35000
60000
150000
Contingency 32000
Total 980500
Work Break down structure: This is one of the most critical tool where project manager
required to divide the work in to small parts resources for them. In SHAM ASIA PACIFIC
CONSTRUCTION GROUP, they required to use such approach and divide their alternative
one in to following parts:

Cost estimation: There are following cost involves:
Planning cost: In the case of alternative two, the planning cost will be $220000 approx.
which is 15 percent more than alternative one.
Legal cost: This is one of the major contribution in a construction project where more than 30
percent cost incurred of total cost. Because, the impact of these cost is very crucial for a

company. For the alternative 2 this cost will be more than 20 percent and cited firm need to
minimised in an effective manner.
Material cost: In the case, for alternative two material purchase will be more than $410000
which is quite lower than the alternative one.
Labour cost: In the context of alternative 2, the labour charges are lower than approx. $70000
due to reduction in various facilities (Project management, 2017).
Other cost: There are other expanse also incurred in a report which required to identify and
analyses in an effective manner.
Cost of equipment: The cost of equipment will be same as per the alternative one and the
changes are depending on the project time frame.
Schedule of work: The schedule of project 2 is mentioned below:
Figure 7: Gantt Chart

Figure 8: Activity
Part 3
Contract: This is one of the major part of this report which is related with the different types
of agreements between two parties. Further this part of the report including following aspects:
Legal agreements: It is essential for the cited firm and client to make a legal agreement which
helps to solve their issues in legal way (Gheisari and Irizarry, 2011). It is a legal agreement
where both parties are contractual bind to follow all the principles and elements in the given
statement. If any party failed their obligation another party can sue in the court. There are
various parties involves in this project such as client, construction company, sub-contractor,
suppliers etc.
Project cost: It is significant for the company to forecast all types of cost which helps to
understand the overall project cost. There are various tools and techniques which can be used
by the enterprise in order to estimate their projected cost. There are three types of alternative
given by the client which cost are depending on the nature and scope of the product. From the
cost estimation the alternative one cost $895000, alternative two $915000 and alternative
three projected cost $980500. The first two option are under the budget which and alternative
three is more than their budget. There are various factors which include the project estimation
and need a careful analysis these elements in order to eliminating potential risk. These are:
Types of project: This is one of the key factor in the cost which depending on the size and
types of project. for a large construiction needs huge resources and workforce.

Insurance requirements: This is depending on the risk involves I the project if the risk factor
is more it will increase the insurance charges. It leads to increase the overall cost of the
project.
Legal requirement: There are different types of legal requirement needed to be completed
which also raise the overall cost of the project (Govindan and et. al., 2015).
Inflation factor: This is another key element which influence the cost of a project. therefore,
each and every company consider inflating in their construction cost which is dynamic in
nature.
Labour wage rate: In this factor wage rate bare depending on the government policies. If
these rate are fluctuation in nature it will increase the cost and also having issue in the
estimation.
Project schedule: This factor is related with the project length which having direct influence
on the cost of the construction. Therefore, project manager makes a plan and assign time limit
for each task in order to meeting the schedule (Kannan and et. al., 2013).
Time: This is one of the major factors and directly influence the cost of the project.
Therefore, each and every construction company make their plan as par their time frame and
tries to complete a project in a given period of time. In the context of given case, the time
limit for the alternative one is 108 weeks, for alternative two approx. 106 weeks and for the
option three approx. 114 weeks.
Raw materials: There are different types of building material required to complete a project.
This is the responsibility of a project manager to make a list of these hardware’s and also
contract list for the different suppliers. These are cement, steel, binding wires, bricks, glass,
wood etc.
Environmental factor: Today, customer is more aware about the climate issue even in their
building design. Green design is not related with the use of eco-friendly products in the
construction but also develop energy sufficient building which save electricity (Kuehlmeyer,
Borasio and Jox, 2012). This is the responsibility of cited company to make a house in a
sustainable way. for this they need to develop each stage in an appropriate manner which
meet client green building requirements. These are:

Design phase: At this stage company required to evaluate the overall design of their project
wheatear it is meet government standards or not. In the context of given case, according to
the government guidelines contractor required to follow Nation Wide House Energy Scheme
in which they provide rating to their design and proposed building design should meet
minimum standards. This is basically related with the building energy saver house which can
save natural resources (Pettigrew, 2014).
Construction phase: In this phase, contractor required to determine those materials which
having less impact on the environment. There are large number of resources used by the
company and create an ideal image. They make sure that to communicate with the client
before using such equipment. The main reason of use such elements is to reducing the
pollution and wastage during construction of building.
Completion phase: Once cited enterprise completed construction of their house need to
identity that equipment which are going to be used. For instance, they can sue energy saver
equipment and hardware which plays a vital role in sustainability.
Organizational process Assets: This is a systematic process of recording existing project files,
documents and standards organize in way where a company can use this information for its
future projects (Snyder and Diesing, 2015). In this context of cited firm, there are following
elements can be involving:
Historical data from past projects: cited company already completed various projects which
plays a vital role in their future projects. These files are set of data which include qualitative
and quantitative. There are various information which are related with the financial
information such as budget, cost sheet, suppliers contact etc. which can be used in the
ongoing project.
Project management information system: It is an integrated information system which contain
various data related to the project and helps to make different types of decision making. Such
system is provide a facility where lower and upper management easily communicate with
each other. This types of system helps to implement and monitoring all activities which can
overcome errors and increase its effectiveness. PMIS also provide the specific guidelines and
schedule and save time and cost both (Spillane, 2012).

Procedures: There are different types of producers used in a construction project plays a vital
role in the company. cited firm having its own process and these are part of the organizational
process assets.
Policies: There are various policies design by the company related with the safety and health,
compensation, working team etc. For instance, cited firm strict policy regard the use of safety
equipment at constriction site in order to reducing accidents rates.
Standards: There are various standards which designed by the government bodies can be
related with safety and security, health, environment, location, design etc. cited enterprise is
following strictly these guidelines in order to running out a project smoothly. The main
motive of such standards to meet the current and future requirement which must be satisfy the
legislation, environmental and other aspects in an effective manner (Stubbings, Chaboyer and
McMurray, 2012). Further, they also required to organize their overall project plan as per
these standards.
Project team: There are various parties involves in a project which plays a vital role in a
project and its smoothly running. As par the give case, following parties can be involving in a
proposed plan:
Project leader: A project leader is a person who responsible for the overall project from
designing to the construction. The role of a project manager is to ultimate responsibility of a
construction and they will also closely be working with the engineers and other people.
Accommodation manager: This is another party who responsible to providing various
information to the project leader, project manager and other parties. He also ensuring the
client approvals regarding fund and financial aspects.
There is various legal issue which must6 be considered by the accommodation manager and
maintain a harmonious working environment at workplace (Tzeng and Huang, 2011).
Project manager: This is one of the key person who focused on day to day operation of a
project. there is various faction of a project manager in order to carry out a construction
without any hurdles. These function are:
 Plan in advance of construction operations.
 To utilize maximum available resources at work place.
 To conduct progress report o regular basis and also monitor overall project.

 To develop contact with the various stakeholders and other parties (Velasquez and
Hester, 2013).
Architecture: An architect is a person who create building design and taking brief form the
client and other parties. He also focused on the various aspects such as regulation and
government standards of their proposed design.
Supply officer: In a project the role of supply officer is to make sure the regular supply of raw
material and workers. Because, in a project time constraint one of the major issue which can
be effectively managed by such person. Further, they also responsible to make contact with
supplier and other parties.
Facilities manager: This is a person who plan all operational activities at the construction site.
He is responsible to maintain the supply and progress of the report and also maintain contact
with the other parties such as client, suppliers, project manager, contractor and subcontractor
(Vercellis, 2011).
Financial analyst: There are various funding and financial activities should be implemented
by owner investor. The major task of an individual is related with acquisition of fund from
the head quarter and allocate with the different department as par their requirement.
Therefore, this is the responsibility of the manager to arrange all resources in a cost effective
manner.
Stakeholders consultation: It includes improvement of constructive as well as productive
relations for long period of time. As a result, people can develop mutual understanding.
Therefore, it is easy to find out trends and in addition problems which can affect their
business at a present or future time. It is required for manager to take feedback from their
bondholders as it aids in improvisation of their project. They can find out risk and control it
in an adequate manner.
Consultation assist them to determine and evaluate trends, situation and in addition
perceptions which is related with a particular shareholder group (Wu and Barnes, 2011). With
aid of this:
 It is easy to identify their demands as well as expectations.
 Find out their knowledge and percept.
 Give feedback.

 Analyse imposition.
 Set up brand value of company which can be seen by another people.
Therefore, intrinsic as well as extrinsic contribution of bondholders is essential as it
caters growth and success to an organisation.
In firm, consultation will depend on:
 A particular improvement, venture or may be on project.
 Current discussion which will be related to examine percept of shareholder within
environment (Wu and Pagell, 2011).
There are various advantages of stakeholder consultancy, which are mentioned as below:
 They can take best and appropriate decision for an enterprise.
 As a result, company will get maximum satisfaction. Circumstances of success is high.
Procedure of consultancy: With assistance of this, bondholders will acquires data and then
provide feedback. There are four steps which will include into it and mentioned is as below:
 Planning: As per this phase, it is fundamental to clear targets and in addition utility of
procedure. When entire objectives are set up then entire process take place and will
consist who are main group of bondholders, their availability, cooperation,
engagement, best methods which is utilized by them and so on. As a result, all sources
will balanced in an adequate manner (Zimmermann, 2012).
 Process: In this, discussion need to be carry on, if planning is done effectively then it
will guarantee that this phase will go well. It is basically concentrate on improvement
of adequate relation with shareholder; therefore, faithful data will be recorded.
 Presentation: Fundamentally, this stage is much connected with examination as well
as reporting of information. Data need to be evaluated so that policies will develop in
a proper way. Manager has to give feedback to those individuals who engaged into
this process.
 Promise: If long term relationship created with stakeholders then it will render trust
and loyalty (Zsambok, 2014). It is required for an employer to get feedback from

shareholders as they are foremost part of every type of company. They need to
communicate with them appropriately as it helps them to keep their promise and this
will maintain their trust on firm.
Info session for the stakeholder: Stakeholders are all such people which are related with
business and made a vast impact on decision making process of a business. Management
have to identify all the stakeholders of an organisation and facilitate the decision making
process according to them. Although they are the one who enable management and make
them aware about how to deal with various number of situations. There are mainly two sort
of stakeholders are identify which are: internal stakeholders and external stakeholders
(Aguirre-Rodriguez, Bosnjak and Sirgy, 2012).
Internal stakeholders are those who support and encourage the activities which are
taking place within an entity. These are members, board of directors, staff members and all
such elements which enable firm in their growth. By considering them in decision making
situation it will aid in motivating them and encouraging them for working with more
appropriately. Management of SHAM ASIA PACIFIC CONSTRUCTION GROUP have to
conduct a info session for all of their stakeholders so that they can provide them proper
information about every new project and time duration which is related with it. For this
consent, all managers, supervisors, line managers have to take active participation and
provide their own views in betterment and growth as well. Thus, info session for internal
stakeholders provide specific information about cash management and minimise the risk
factors as well (Bateman, Valentine and Rittenburg, 2013). Hence, SHAM ASIA PACIFIC
CONSTRUCTION GROUP become more able to deal with every course of situation which
is not in favour of them in their future growth and benefits.
External stakeholders are another major aspects which affect the business and its
operations from outside the business world. It includes government, customers and many
bodies who enable entity to manage working from outside the environment. Business
environment specially outside world is dynamic in nature and get changed with course of
time. For this relation management have to make relation of business with outside
environment and facilitate the working properly. Majorly, customers perspective get changed
with every course of time and it is essential to conduct a survey on their opinion and identify
their perspective as well. Through this, they become more and more capable to increase
number of satisfy customer and increase their profitability as well. Along with this,

government also plays and important role and affect business from outside world. The rapid
change in government tax legislation affect operations of business very badly and thus
authority have to reframe their policies as well according to such consent (Craft, 2013).
SHAM ASIA PACIFIC CONSTRUCTION GROUP also have to organise a open
session with all of their external stakeholders so that they can provide a proper information
about their business and project to them as well. In case if any deviation find out at the time
of session, management become able to alter them according to time frame. This is an
essential thing for business through which they can minimise maximum risk factor for
business and avoid uncertainties as well. Moreover, stakeholders have to take better and
effective decision by analysing all statements of a company properly.
Data collection from the stakeholders: To gather information or data from shareholders,
company can use some appropriate methods, which are mentioned as beneath:
Survey: It is most adequate methodology which can be used by a company. With aid of this
they can gather data and information form numerous people (Ford and Richardson, 2013).
For this purpose, they can use internet or social sites. It is necessary to give a limited period
of time to accomplish it. It can be of two types one is open ended and another is close ended.
Best and most effective method is close ended survey as with help of this an employer can
take most effective judgement.
Focus group decision: As per this method, manager can invite shareholders, so that they can
express their views on a particular topic. It will include 5 to 10 people in a group. With aid of
this, accurate data and information will gathered as participants are much knowledgeable. It
helps to decrease communication associated problems.
One to one interview: To acquire more accurate data, an employer can use this sort of tool.
With assistance of this relevant information will collected. Foremost benefit of utilizing this
technique is that shareholder does not have any sort of pressure to give answer. But
utilization of this methodology will consume too much time (Ford and Richardson, 2013).
Conclusion and Recommendation
As per the above report it has been concluded that the role of decision making in the context
of construction project. This report helps to understand various aspects of construction phase
specially the cost related issue. There are three types of project and its cost are given which
related with the measure and evaluating an appropriate option on the basis of different

aspects. These elements can be cash estimation, cash inflow and outflow, profitability, work
breakdown structure for each project, different types of equipment and its cost, variety of risk
associated with the construction project, and scheduling for each work in an effective manner
so that co0mpany can chose and suitable alternative for beneficial for both company and
client.

REFERENCES
Books and Journals:
Aguirre-Rodriguez, A., Bosnjak, M. and Sirgy, M. J., 2012. Moderators of the self-congruity
effect on consumer decision-making: A meta-analysis. Journal of Business
Research. 65(8). pp. 1179-1188.
Bateman, C. R., Valentine, S. and Rittenburg, T., 2013. Ethical decision making in a peer-to-
peer file sharing situation: The role of moral absolutes and social consensus. Journal
of Business Ethics. 115(2). pp. 229-240.
Craft, J. L., 2013. A review of the empirical ethical decision-making literature: 2004–
2011. Journal of Business Ethics. 117(2). pp. 221-259.
Ford, R. C. and Richardson, W. D., 2013. Ethical decision making: A review of the empirical
literature. In Citation classics from the Journal of Business Ethics. pp. 19-44.
Springer Netherlands.
Gheisari, M. and Irizarry, J., 2011. Investigating facility managers’ decision making process
through a situation awareness approach. International Journal of Facility
Management. 2(1).
Govindan, K. and et. al., 2015. Multi criteria decision making approaches for green supplier
evaluation and selection: a literature review. Journal of Cleaner Production. 98.
pp.66-83.
Kannan, D. and et. al., 2013. Integrated fuzzy multi criteria decision making method and
multi-objective programming approach for supplier selection and order allocation in
a green supply chain. Journal of Cleaner Production. 47. pp.355-367.
Kuehlmeyer, K., Borasio, G.D. and Jox, R. J., 2012. How family caregivers9 medical and
moral assumptions influence decision making for patients in the vegetative state: a
qualitative interview study. Journal of medical ethics. 38(6). pp.332-337.
Pettigrew, A. M., 2014. The politics of organizational decision-making. Routledge.
Snyder, G. H. and Diesing, P., 2015. Conflict among nations: Bargaining, decision making,
and system structure in international crises. Princeton University Press.
Spillane, J. P., 2012. Data in practice: Conceptualizing the data-based decision-making
phenomena. American Journal of Education. 118(2). pp.113-141.
Stubbings, L., Chaboyer, W. and McMurray, A., 2012. Nurses’ use of situation awareness in
decision‐making: an integrative review. Journal of advanced nursing. 68(7).
pp.1443-1453.
Tzeng, G. H. and Huang, J. J., 2011. Multiple attribute decision making: methods and
applications. CRC press.
Velasquez, M. and Hester, P. T., 2013. An analysis of multi-criteria decision making
methods. International Journal of Operations Research. 10(2). pp.56-66.
Vercellis, C., 2011. Business intelligence: data mining and optimization for decision making.
John Wiley & Sons.

Wu, C. and Barnes, D., 2011. A literature review of decision-making models and approaches
for partner selection in agile supply chains. Journal of Purchasing and Supply
Management. 17(4). pp.256-274.
Wu, Z. and Pagell, M., 2011. Balancing priorities: Decision-making in sustainable supply
chain management. Journal of Operations Management. 29(6). pp.577-590.
Zimmermann, H. J., 2012. Fuzzy sets, decision making, and expert systems (Vol. 10).
Springer Science & Business Media.
Zsambok, C. E., 2014. Naturalistic decision making. Psychology Press.
Online:
Project management. 2017. [Online]. Available through:
<https://www.engineeringdesignresources.com/tag/how-to-estimate-engineering-
design-cost-as-percentage-of-construction-cost/>. [Accessed on 7th October 2017].