A Green Supply Chain Network Design Considering Carbon Dioxide Emissions, Energy Consumption and Economic Performance

Abstract

The aim of most supply chain network design problems is to minimize the total cost of the supply chain. One of the most important problems in the today’s world is climate changes and its impact on environment and humanity. The green supply chain concept because of its emphasis on energy efficiency, reduction of greenhouse gas emissions, and recycling end of life products, has been considered as an effective solution to this concern. In this article we introduced a green supply chain network design model with forward and reverse flows, considering green procurement and also some tradition costs of supply chain such as fixed cost, transportation cost, purchasing raw material. Two major factors of the model are the energy consumption cost and the Costs of carbon dioxide emissions when the upper limit is exceeded. The concerned supply network includes suppliers, planets, distribution centers and customers in forward scene, and collection centers and disposal centers in backward direction. Each plant can be established by standard or environmentally friendly technology. Multiple types of vehicles with different capacity, cost and CO2 emission are used throughout the supply chain. The problem is formulated as a mixed integer nonlinear programming model and solved using Lingo. Numerical experiments are performed to illustrate the efficiency of the proposed approach.