A Robust Optimization Model Based On The Green Supply Chain Network Design Under Uncertainty Of Future Economic Conditions

 

Volume 2, Issue 1, Number 4, Pages 56-69, Published Online January 20, 2014

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Author(s):

Elham Mofid Nakhaii, Dr. Javad Soroor

ABSTRACT:

In this paper, a robust programming model for forward and reverse green (environmental) supply chain network design is established under uncertainty of future economic conditions. Initially, a deterministic mixed integer programming model is provided, and then the robust model based on using a scenario-based approach (two-step) is developed. The network design problem, including assumptions such as: multi-product, multi-echelon and single-period. Considering a situation of instability of the economic situation, the uncertainty has been considered in a different way from previous papers. the unstable economic conditions affect the demand and prices of raw materials and fuel; as a result, demand and total costs of production and transportation parameters in the problem are uncertain. The Proposed model are also considers the release rate of greenhouse gas production and transportation systems in the chain and tries to reduce it by providing an objective function at a time. Besides, Manufacturing and distribution centers work in a dual-purpose manner; its advantages are saving money and reducing pollution resulted from shared transport equipment’s and infrastructure.

KEYWORDS:

Green supply chain, network design problem, environmental impacts, demand uncertainty, uncertainty of cost, robust programming

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