A Mixed Integer Linear Programming model for the design and planning of green supply chains is developed. Strategic and tactical decisions are taken, namely on facility location and capacity installation, supplier selection, technology selection, transportation network definition, supply planning, and product recovery. The aim of this work is to study the use of environmental indicators in these decisions while accounting for profit objectives. Different objective functions concerning environmental aspects are implemented. ReCiPe quantifies the environmental performance of the supply chain and combinations of ReCiPe's midpoint categories allow a deeper analysis of the impact of these categories in strategic and tactical decisions. The goal is to understand if focusing on selected categories affects supply chain decisions and overall supply chain environmental impact. Net Present Value quantifies the economic performance and is used for lexicographic optimization. The model is applied to a case-study and important managerial insights are obtained. From a holistic point of view, it answers the question: how should supply chain environmental impact be assessed? From a case-study perspective, insights are obtained regarding what type of improvements should be implemented to reduce the environmental impact and how this would affect supply chain strategic and tactical decisions, along with economic performance.
|Institute of Electrical and Electronics Engineers (IEEE)
|Published - 2016
- closed-loop supply chain
- environmental impact assessment