Chapter

Design and Planning of Sustainable Supply Chains

Chapter

Design and Planning of Sustainable Supply Chains

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Abstract

Supply chains play a significant role in global sustainability as they affect and are affected by several stakeholders, legislation, and cultures. When designing a supply chain it is critical to consider these elements so that a competitive advantage can be achieved in the long run. Simultaneously, governmental institutions need to understand the impact of sustainability measures in the financial performance of the companies. There is then the need to develop decision support tools that can assist in such decisions. However, the complexity, uncertainty, and subjectivity involved in these decisions hamper the development of such tools and literature in the field, as overviewed in this chapter. A multiobjective mixed integer linear programming model is presented with two different environmental and one social metrics being studied. The model is applied to a real case study and important managerial insights are discussed.

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... A few approaches extend the optimization framework to include social aspects, along with environmental ones in sustainable design of considered dairy supply chains. Mota et al. (2015) have proposed a ε-constraint multiobjective mixed integer linear programming model with two different environmental and one social metrics. ...
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... Single objective Deterministic Eco þ Env (Accorsi et al., 2016;Almansoori and Betancourt-Torcat, 2016;Clavijo Buritica and Escobar, 2017;Costa et al., 2018;Duarte et al., 2016;Galvez et al., 2015;Izadikhah and Saen, 2016;Mohd Idris et al., 2018;Zhang et al., 2017;Zhou et al., 2017;Zohal and Soleimani, 2016) Eco þ Soc Babazadeh et al. (2017) Eco þ Env Stochastic (Ahn and Han, 2018;Fahimnia et al., 2018;Ghelichi et al., 2018;Quddus et al., 2017;Rezaee et al., 2017;Saif and Elhedhli, 2016;Xu et al., 2017) Multiple objectives Deterministic Eco þ Env Chen et al., 2017a;Chen et al., 2018a;Chen et al., 2017b;Colicchia et al., 2016;Domínguez-García et al., 2017;Fang et al., 2018;Gao and You, 2015;Govindan et al., 2016a;Kuo et al., 2018;Miranda-Ackerman et al., 2017;Murillo-Alvarado et al., 2015;Nodooshan et al., 2018;Palacio et al., 2015;Tang et al., 2016;Urata et al., 2017) Eco þ Env þ Soc (Aalirezaei and Shokouhyar, 2017;Anvari and Turkay, 2017;Arampantzi and Minis, 2017;Awad-Nunez et al., 2015;Ch avez et al., 2018;Govindan et al., 2016b;Jafari et al., 2017;Jiang et al., 2018;Kesharwani et al., 2018;Miret et al., 2016;Mota et al., 2015a;Rabbani et al., 2018;Roni et al., 2017;Varsei and Polyakovskiy, 2017;Zhu and Hu, 2017) Stochastic Eco þ Env (Asadi et al., 2018;Azadeh et al., 2017;Brandenburg, 2015;Ebrahimi, 2018;Fahimnia and Jabbarzadeh, 2016;Fazli-Khalaf et al., 2017;Gargalo et al., 2017;Govindan et al., 2015;Khorasani and Almasifard, 2018;Rahmani Ahranjani et al., 2017;Rajkumar & Satheesh Kumar, 2015;Tosarkani and Amin, 2018;Yılmaz Balaman et al., 2018;Zeballos et al., 2018) Eco þ Soc types of electronic waste. Studies addressing sustainability in this sector often use a closed loop supply chain approach. ...
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a b s t r a c t In this paper, a mixed integer linear programming (MILP) formulation is developed for the design and planning of supply chains with reverse flows while considering simultaneously production, distribution and reverse logistics activities. It is also considered products' demand uncertainty using a scenario tree approach. As main goal the model defines the maximization of the expected net present value and the results provide details on sizing and location of plants, warehouses and retailers, definition of processes to install, establishment of forward and reverse flows and inventory levels to attain. The model is applied to a representative European supply chain case study and its applicability is demonstrated. Ó 2012 Elsevier B.V. All rights reserved.
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The present work describes the integration of environmental impact/damage evaluation into an optimization model for management of industrial networks. The selected methodology of environmental evaluation, the Eco-indicator 99, is based on the life cycle impact assessment. Its implementation and suitability is studied with an emphasis being placed on the strengths and limits of the methodology. The final model, derived from the application of process system engineering methodologies, is described as a mixed-integer linear program, which, once solved, is able to suggest the optimal processing and transportation routes, while optimizing a given objective function that either meets the design and environmental constraints or minimizes the eco-indicator. Whenever the impacts/damages costs are quantifiable, the calculation may also contemplate the inclusion of the environmental costs into the economic function that evaluates the network characteristic data and costs. An example based on the implementation of an innovative network for the recovery of the sludge obtained from aluminum surface finishing plants is presented. This illustrates the importance of including environmental impact/damage methodologies, explores their possible uses and analyzes obtained results. It is also used to perform a multiobjective analysis through an approximation to the Pareto curve for an economic-environmental trade-off. This curve is obtained through the application of a ε-constraint method, by plotting a set of successive optimized solutions given by the maximization of an economic function that reflects the costs of disposal, processing, transport, and materials storage versus an impact indicator obtained from the environment pollutants emitted. This analysis is complemented with the minimization of the eco-indicator value (EI99), along with an estimate of the corresponding amount of sludge recovery.
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Article
This article addresses the design of sustainable chemical supply chains in the presence of uncertainty in the life cycle inventory associated with the network operation. The design task is mathematically formulated as a bi-criterion stochastic mixed-integer nonlinear program (MINLP) that simultaneously accounts for the maximization of the net present value and the minimization of the environmental impact for a given probability level. The environmental performance is measured through the Eco-indicator 99, which incorporates the recent advances made in Life Cycle Assessment. The stochastic model is converted into its deterministic equivalent by reformulating the probabilistic constraint required to calculate the environmental impact in the space of uncertain parameters. The resulting deterministic bi-criterion MINLP problem is further reformulated as a parametric MINLP, which is solved by decomposing it into two sub-problems and iterating between them. The capabilities of the proposed model and solution procedure are illustrated through two case studies for which the set of Pareto optimal, or efficient solutions that trade-off environmental impact and profit, are calculated. These solutions provide valuable insights into the design problem and are intended to guide the decision maker towards the adoption of more sustainable design alternatives. © 2008 American Institute of Chemical Engineers AIChE J, 2009
Article
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Article
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Article
Traditionally the design of supply chains has been based on economic objectives. However, as societal environment concerns grows, environmental aspects are also emerging at academic and industry levels as decisive factors within the supply chain management context. The investment towards logistics structures that considers both economic and environmental performances is nowadays an important and current research topic.This paper addresses the planning and design of supply chain structures for annual profit maximization, while considering environmental aspects. The latter are accounted for through the Eco-indicator methodology. Profit and environmental impacts are balanced using an optimization approach adapted from symmetric fuzzy linear programming (SFLP), while the supply chain is modelled as a mixed integer linear programming (MILP) optimization problem using the Resource-Task-Network (RTN) methodology. The obtained model applicability is validated through the solution of a set of supply chain problems.
Article
The increase in societal awareness towards environmental issues has accrued the responsibility of goods producers, which at present came to encompass the entire product life cycle. Recently, the efficient design and operation of supply chains with return flows have, in particular, become a major challenge for many companies, given the high number of factors involved and their intricate interactions. In this paper, a multi-period and multi-product network model for the simultaneous design and planning of supply chains with reverse flows is proposed. A graph approach based on the conventional concepts of nodes and arcs is employed to model the network, where it is assumed that any network node is a transformation point of inbound into outbound flows, which in the limit may not differ, and that related arcs describe products flows along the chain. In here the formulation of time adopts a management perspective, i.e., the strategic design of the supply chain is dealt simultaneously with the tactical planning of its operation, which covers supply, production, storage and distribution. An example based on a Portuguese industry case is studied in order to validate both the applicability and adequacy of the model to real world problems.
Article
Normalization is an optional step within Life Cycle Impact Assessment (LCIA) that may be used to assist in the interpretation of life cycle inventory data as well as life cycle impact assessment results. Normalization transforms the magnitude of LCI and LCIA results into relative contribution by substance and life cycle impact category. Normalization thus can significantly influence LCA-based decisions when tradeoffs exist. The U. S. Environmental Protection Agency (EPA) has developed a normalization database based on the spatial scale of the 48 continental U.S. states, Hawaii, Alaska, the District of Columbia, and Puerto Rico with a one-year reference time frame. Data within the normalization database were compiled based on the impact methodologies and lists of stressors used in TRACI-the EPA's Tool for the Reduction and Assessment of Chemical and other environmental Impacts. The new normalization database published within this article may be used for LCIA case studies within the United States, and can be used to assist in the further development of a global normalization database. The underlying data analyzed for the development of this database are included to allow the development of normalization data consistent with other impact assessment methodologies as well.
Article
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