Environmentally conscious optimization of supply chain networks

Abstract

The optimization of supply chain structures considering both economic and environmental performances is nowadays an important research topic. However, enterprises are commonly faced with the competing issues of reduced cost, improved customer service and increased environmental factors as a multi-faceted trade-off problem when designing supply chains. Hence, this paper proposes an environmentally conscious optimization model of a supply chain network with a broader and more comprehensive objective function that considers not just the transportation costs, but also the costs for the amount of greenhouse gas emissions, fuel consumption, transportation times, noise and road roughness. The paper sheds light on the trade-offs between various parameters such as vehicle speed, fuel, time, emissions, noise and their total cost, and offers managerial insights on economies of environmentally conscious supply chain optimization. An integer non-linear programming model is developed to help decision makers find the optimal solution under mentioned considerations. The proposed model is validated through the solution of an example, where its applicability to supply chain problems is demonstrated for managerial insights.

Keywords:

• environmental impacts
• supply chain design
• noise
• greenhouse gas emission
• fuel efficiency
• non-linear programming

Acknowledgements

The authors express their gratitude to the three anonymous reviewers for their valuable comments on the paper. In carrying out this research, the authors have been supported by the Selçuk University Scientific Research Project Fund (BAP) and by the Scientific and Technological Research Council of Turkey (TUBITAK) with Grant No: 111M040. These funds are hereby gratefully acknowledged.