A Goal Programming Approach for Green Supply Chain Network Optimization

Abstract

Green supply chain management has been focused by both academicians and practitioners in recent years due to the increased public awareness on environmental problems and sustainable development. In this paper, a decision aided model for green supply chain network design and optimization is proposed to justify both economic and environmental performance in an optimal fashion. The model is formulated as a bi-objective goal programming model aiming to balance supply chain cost and CO2 emission, which are usually conflict with each other. The model is validated through a numerical experiment, and discussion and analysis are also given based upon the computational result. The result provides managerial insights for companies in the supply chain, and it has been proved to be an effective tool for decision-making in strategic level of supply management. In general, more investment has to be spent for reducing the CO2 emission in a supply chain, and the result of sensitivity analysis presents the cost effectiveness in achieving the environmental goal.