Supply chain network design considering carbon footprint, water footprint, supplier’s social risk, solid waste, and service level under the uncertain condition

Abstract Supply chain network design (SCND) plays a crucial role in transforming a supply chain sustainable. Recently, various SCND models have been developed especially focusing on carbon footprint reduction. The current study argues that emphasizing only on carbon footprint cannot entirely transform a supply chain sustainable. There are other dimensions (water footprint, solid waste, and social factor), which need to be taken care of for implementing sustainability. Till now, most of the sustainable SCND models have been developed in deterministic conditions, and very few models have been reported in a stochastic environment. To fill the gaps of existing literature, the current study proposes a multi-product and multi-echelon SCND model by addressing carbon footprint, water footprint, solid waste, social sustainability, service level, different transportation modes and inventories in stochastic condition. The study intends to minimize the total cost and estimate the flow of materials across the various echelons of the supply chain. The model considers the demand and capacity as stochastic variables. Further, chance-constrained programming has been used to model the uncertainty of parameters. In the current research, an individual-level chance constraint with right-hand side uncertainty has been adopted. The applicability of the proposed model has been demonstrated with a numerical example and sensitivity analyses have been conducted by changing model parameters, like probability, carbon footprint, water footprint, solid waste, service level, and social factor. The suggested model facilitates decision-maker to estimate the optimum flow of material across the supply chain for delivering materials of predetermined carbon footprint, water footprint, solid waste, social sustainability, and service level. The model helps the manager to implement the sustainability holistically across the supply chain. Graphic abstract

[1]  Kannan Govindan,et al.  Supply chain network design under uncertainty: A comprehensive review and future research directions , 2017, Eur. J. Oper. Res..

[2]  A. Amida,et al.  Fuzzy multiobjective linear model for supplier selection in a supply chain , 2015 .

[3]  Fabrizio Dallari,et al.  Eco-efficient supply chain networks: development of a design framework and application to a real case study , 2016 .

[4]  Mostafa Hajiaghaei-Keshteli,et al.  Sustainable closed-loop supply chain network design with discount supposition , 2019, Neural Computing and Applications.

[5]  Shraddha Mishra,et al.  An environmentally sustainable manufacturing network model under an international ecosystem , 2019, Clean Technologies and Environmental Policy.

[6]  J K Sengupta,et al.  A GENERALIZATION OF SOME DISTRIBUTION ASPECTS OF CHANCE-CONSTRAINED LINEAR PROGRAMMING* , 1970 .

[7]  J. Minx,et al.  A definition of “carbon footprint” , 2010 .

[8]  Yi Yang,et al.  Sequential Convex Approximations to Joint Chance Constrained Programs: A Monte Carlo Approach , 2011, Oper. Res..

[9]  Zhuang Sun,et al.  Comparative carbon and water footprint analysis and optimization of Organic Rankine Cycle , 2019, Applied Thermal Engineering.

[10]  Angel B. Ruiz,et al.  An integrated approach for sustainable supply chain planning , 2015, Comput. Oper. Res..

[11]  Angappa Gunasekaran,et al.  Flexible Sustainable Supply Chain Network Design: Current Trends, Opportunities and Future , 2016 .

[12]  S.M.T. Fatemi Ghomi,et al.  Multi-objective green supply chain optimization with a new hybrid memetic algorithm using the Taguchi method , 2012 .

[13]  Rodolfo Eleazar Pérez Loaiza,et al.  Supply chain network design with efficiency, location, and inventory policy using a multiobjective evolutionary algorithm , 2017, Int. Trans. Oper. Res..

[14]  C. Giménez,et al.  Achieving a socially responsible supply chain through assessment and collaboration , 2016 .

[15]  Fabrizio Bezzo,et al.  Spatially Explicit Multiobjective Optimization for the Strategic Design of First and Second Generation Biorefineries Including Carbon and Water Footprints , 2013 .

[16]  Harpreet Kaur,et al.  Fuzzy Modeling for Low-Carbon Dynamic Procurement Problem , 2017, Int. J. Fuzzy Syst..

[17]  Yu-Chung Tsao,et al.  A supply chain network with product remanufacturing and carbon emission considerations: a two-phase design , 2017, Journal of Intelligent Manufacturing.

[18]  Jinglan Hong,et al.  Water footprint analysis of wheat production , 2019, Ecological Indicators.

[19]  Ian D. Williams,et al.  ‘Carbon footprinting’: towards a universally accepted definition , 2011 .

[20]  E. Hartmann,et al.  Managing supplier sustainability risks in a dynamically changing environment—Sustainable supplier management in the chemical industry , 2010 .

[21]  Josefa Mula,et al.  Quantitative models for supply chain planning under uncertainty: a review , 2009 .

[22]  S. Selim,et al.  Multi-period planning of closed-loop supply chain with carbon policies under uncertainty , 2017 .

[23]  H. Winkler,et al.  Sustainable Supply Chain Networks – A New Approach For Effective Waste Management , 2006 .

[24]  Sara González-García,et al.  Carbon and water footprint of pork supply chain in Catalonia: From feed to final products. , 2016, Journal of environmental management.

[25]  R. Narasimhan,et al.  Supply chain design: issues, challenges, frameworks and solutions , 2014 .

[26]  Mingzhou Jin,et al.  The impact of carbon policies on supply chain design and logistics of a major retailer , 2014 .

[27]  M. Tseng,et al.  A literature review on green supply chain management: Trends and future challenges , 2019, Resources, Conservation and Recycling.

[28]  Francisco Saldanha-da-Gama,et al.  Facility location and supply chain management - A review , 2009, Eur. J. Oper. Res..

[29]  A. Gunasekaran,et al.  Enhancing supply chain performance through supplier social sustainability: An emerging economy perspective , 2018 .

[30]  Z. Shen Integrated supply chain design models: a survey and future research directions , 2007 .

[31]  Benita M. Beamon,et al.  Green supply chain network design with stochastic demand and carbon price , 2017, Ann. Oper. Res..

[32]  Abby Ghobadian,et al.  An empirical study of green supply chain management practices amongst UK manufacturers , 2009 .

[33]  Kerem Bülbül,et al.  Chance-constrained stochastic programming under variable reliability levels with an application to humanitarian relief network design , 2018, Comput. Oper. Res..

[34]  Tiaojun Xiao,et al.  Price and service competition of supply chains with risk-averse retailers under demand uncertainty , 2008 .

[35]  Teresa M. Mata,et al.  Sustainability considerations of biodiesel based on supply chain analysis , 2011 .

[36]  Krishnendu Shaw,et al.  Uncertain supply chain network design considering carbon footprint and social factors using two-stage approach , 2017, Clean Technologies and Environmental Policy.

[37]  Qinghua Zhu,et al.  Green supply chain management in China: pressures, practices and performance , 2005 .

[38]  M. Tseng,et al.  Design and Analysis of Supply Chain Networks with Low Carbon Emissions , 2018 .

[39]  José M. Merigó,et al.  Research on green supply chain: a bibliometric analysis , 2018, Clean Technologies and Environmental Policy.

[40]  S. Sikdar Sustainability and recycle–reuse in process systems , 2007 .

[41]  Y. Tsao,et al.  Design of a carbon-efficient supply-chain network under trade credits , 2015 .

[42]  T. C. Edwin Cheng,et al.  Advances in stochastic programming and robust optimization for supply chain planning , 2018, Comput. Oper. Res..

[43]  Sarah M. Ryan,et al.  Robust design of a closed-loop supply chain network for uncertain carbon regulations and random product flows , 2014, EURO J. Transp. Logist..

[44]  Ahmad Jafarian,et al.  Designing a sustainable closed-loop supply chain network based on triple bottom line approach: A comparison of metaheuristics hybridization techniques , 2014, Eur. J. Oper. Res..

[45]  Stefan Seuring,et al.  A review of modeling approaches for sustainable supply chain management , 2013, Decis. Support Syst..

[46]  K. P. Nurjanni,et al.  Green supply chain design: a mathematical modeling approach based on a multi-objective optimization model , 2017 .

[47]  Melvyn Sim,et al.  From CVaR to Uncertainty Set: Implications in Joint Chance-Constrained Optimization , 2010, Oper. Res..

[48]  D. Vlachos,et al.  A water footprint management framework for supply chains under green market behaviour , 2018, Journal of Cleaner Production.

[49]  S. Sikdar Sustainable development and sustainability metrics , 2003 .

[50]  Pierre Dejax,et al.  Sustainable supply chain network design: An optimization-oriented review☆ , 2015 .

[51]  S. Elhedhli,et al.  Green supply chain network design: A review focused on policy adoption and emission quantification , 2019, International Journal of Production Economics.

[52]  Donya Rahmani,et al.  Strategic and operational supply chain network design to reduce carbon emission considering reliability and robustness , 2017 .

[53]  Sebastian Kummer,et al.  A review of green supply chain management: From bibliometric analysis to a conceptual framework and future research directions , 2018, Resources, Conservation and Recycling.

[54]  Farnaz Barzinpour,et al.  A dual-channel network design model in a green supply chain considering pricing and transportation mode choice , 2018, J. Intell. Manuf..

[55]  Eric Johnson,et al.  Disagreement over carbon footprints : A comparison of electric and LPG forklifts , 2008 .

[56]  Iiro Harjunkoski,et al.  Sustainable supply chain network design for the optimal utilization of municipal solid waste , 2018, AIChE Journal.

[57]  Ioannis Minis,et al.  A new model for designing sustainable supply chain networks and its application to a global manufacturer , 2017 .

[58]  S. Chopra,et al.  Managing Risk To Avoid Supply-Chain Breakdown , 2004 .

[59]  Alireza Nazemi,et al.  A high performance neural network model for solving chance constrained optimization problems , 2013, Neurocomputing.

[60]  Mohammad Reza Akbari Jokar,et al.  An optimization study of a palm oil-based regional bio-energy supply chain under carbon pricing and trading policies , 2017, Clean Technologies and Environmental Policy.

[61]  Lei Shi,et al.  Optimization of multi-product batch plant design under uncertainty with environmental considerations , 2010 .

[62]  Stefan Seuring,et al.  The role of supplier development in managing social and societal issues in supply chains , 2018 .

[63]  Mark S. Daskin,et al.  Strategic facility location: A review , 1998, Eur. J. Oper. Res..

[64]  Subhash C. Sarin,et al.  Chance Constrained Programming Models for Risk-Based Economic and Policy Analysis of Soil Conservation , 1994, Agricultural and Resource Economics Review.

[65]  Bruno Agard,et al.  Environmental constraints in joint product and supply chain design optimization , 2014, Comput. Ind. Eng..

[66]  Ravi Shankar,et al.  Modeling a low-carbon garment supply chain , 2013 .

[67]  Pu Li,et al.  Chance constrained programming approach to process optimization under uncertainty , 2008, Comput. Chem. Eng..

[68]  Angappa Gunasekaran,et al.  Exploring the relationship between leadership, operational practices, institutional pressures and environmental performance: A framework for green supply chain , 2015 .

[69]  A. Ramudhin,et al.  Carbon market sensitive sustainable supply chain network design , 2010 .

[70]  Yuan Zhou,et al.  The Impacts of Carbon Tariff on Green Supply Chain Design , 2017, IEEE Transactions on Automation Science and Engineering.

[71]  W. Stahel,et al.  Problems with Using the Normal Distribution – and Ways to Improve Quality and Efficiency of Data Analysis , 2011, PloS one.

[72]  Marius Claudy,et al.  Going above and beyond: how sustainability culture and entrepreneurial orientation drive social sustainability supply chain practice adoption , 2015 .

[73]  Alexander Shapiro,et al.  Convex Approximations of Chance Constrained Programs , 2006, SIAM J. Optim..

[74]  Marcus Brandenburg,et al.  Quantitative models for sustainable supply chain management: Developments and directions , 2014, Eur. J. Oper. Res..

[75]  Tzong-Ru Lee,et al.  Model selection with considering the CO2 emission alone the global supply chain , 2013, J. Intell. Manuf..

[76]  Masahiro Inuiguchi,et al.  Possibilistic linear programming: a brief review of fuzzy mathematical programming and a comparison with stochastic programming in portfolio selection problem , 2000, Fuzzy Sets Syst..

[77]  Subhas K. Sikdar,et al.  Measuring Progress Towards Sustainability: A Treatise for Engineers , 2017 .

[78]  Xiaofan Lai,et al.  A multi-objective optimization for green supply chain network design , 2011, Decis. Support Syst..

[79]  Alexander Shapiro,et al.  Sample Average Approximation Method for Chance Constrained Programming: Theory and Applications , 2009, J. Optimization Theory and Applications.

[80]  Remica Aggarwal,et al.  Chance constraint-based multi-objective stochastic model for supplier selection , 2015 .

[81]  Kannan Govindan,et al.  Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future , 2015, Eur. J. Oper. Res..

[82]  ShawKrishnendu,et al.  Low carbon chance constrained supply chain network design problem , 2016 .

[83]  Alain Martel,et al.  The design of robust value-creating supply chain networks , 2010, Eur. J. Oper. Res..

[84]  Ali H. Diabat,et al.  Green supply chains with carbon trading and environmental sourcing: Formulation and life cycle assessment , 2012 .

[85]  J. B. Cruz,et al.  Fuzzy input–output model for optimizing eco-industrial supply chains under water footprint constraints , 2011 .

[86]  A. Gunasekaran,et al.  Social sustainability in the supply chain: Construct development and measurement validation , 2016 .

[87]  C. Bhattacharya,et al.  Doing Better at Doing Good: When, Why, and How Consumers Respond to Corporate Social Initiatives , 2004 .

[88]  Bilal Şişman Supply Chain Network Design Considering Customer Service Level , 2012 .

[89]  Mostafa Zandieh,et al.  Robust bi-level optimization for green opportunistic supply chain network design problem against uncertainty and environmental risk , 2017, Comput. Ind. Eng..

[90]  Allan Rennie,et al.  SME application of LCA‐based carbon footprints , 2008 .

[91]  Krishnendu Shaw,et al.  Low carbon chance constrained supply chain network design problem: a Benders decomposition based approach , 2016, Comput. Ind. Eng..

[92]  Reza Zanjirani Farahani,et al.  Robust supply chain network design with service level against disruptions and demand uncertainties: A real-life case , 2013, Eur. J. Oper. Res..

[93]  Linda S. Munilla,et al.  The Potential Impact of Social Accountability Certification on Marketing: A Short Note , 2004 .

[94]  Annachiara Longoni,et al.  A systematic review of sustainable supply chain management in global supply chains , 2019, Journal of Cleaner Production.

[95]  Mohsen Varsei,et al.  Sustainable Supply Chain Network Design: A Case of the Wine Industry in Australia , 2016 .

[96]  Andreas Drexl,et al.  Facility location models for distribution system design , 2005, Eur. J. Oper. Res..

[97]  Jacqueline M. Bloemhof-Ruwaard,et al.  An environmental life cycle optimization model for the European pulp and paper industry , 1996 .

[98]  Nishikant Mishra,et al.  Integrated decisions for supplier selection and lot-sizing considering different carbon emission regulations in Big Data environment , 2019, Comput. Ind. Eng..

[99]  Amin Chaabane,et al.  Designing supply chains with sustainability considerations , 2011 .

[100]  Mark S. Daskin,et al.  Network and Discrete Location: Models, Algorithms and Applications , 1995 .