A Trade-off Model for Green Supply Chain Design: An Efficiency-versus-Emission Analysis

Abstract

—With the growing concern of climate change and global warming, the reduction on carbon emissions of supply chain activities have been increasingly focused by both academics and corporates in the last two decades. The increased public awareness on sustainability and stricter environmental policies together enforce the companies to rethink their practices in supply chain design and operations in an efficient while environmentally friendly fashion. This paper proposes a mathematical programming model for green supply chain design taking into consideration of both efficiency and carbon-emissions. First, a bi-objective MILP model is formulated for green supply chain design. Second, both weighted sum method and augmented -constrained method are introduced for resolving the trade-off problem between the two objective functions. Third, through the numerical experiment, the quality and computational efficiency of the non-dominant Pareto optimal solutions calculated by both weighted sum method and augmented -constraint method are compared, and the result is discussed latter in this paper.