Supply Chain Network Design integrating Economic, Risk and Energy Sustainability

Document Type: Research Article

Authors

1 Faculty of Economics, Management and Administration Sciences, Semnan University, Semnan, Iran

2 Faculty of Management and Accounting, Shahid Beheshti University, Tehran, Iran

3 School of Industrial Engineering, Iran University of Science and Technology, Tehran, Iran

Abstract

Supply chains and economic systems have an important role in environmental issues and energy sustainability. Energy is a key factor of all economic systems and has a large environmental impact, therefore its affordable consumption is very important to have a sustainable supply chains and sustainable future. This paper provides a new formulation of supply chain network design by integration of thermodynamic rules about available or useful energy and econometric coefficients and also risk factor in supply chain. The purpose of this integration is to achieve a sustainable supply chain modeling in both fields of available energy and total costs that can guarantees both return of the investments and useful energy in the economic systems. In order to solve the proposed model, augmented ε-constraint method is used and numerical examples are discussed and the results illustrate that the proposed model admitted various progresses in minimizing consumed available energy along with the total costs and risk factor in the proposed model. Also results show that the Gross Domestic Product (GDP) and two of the econometric coefficients generally pointed out as “alpha” and “beta” play a significant role in the amount of consumed available energy and energy sustainability in the supply chain.

Keywords


Amin, S. H., & Zhang, G. (2012a). An integrated model for closed-loop supply chain configuration and supplier selection: Multi-objective approach. Expert Systems with Applications, 39(8), 6782-6791.
Amin, S. H., & Zhang, G. (2012b). A proposed mathematical model for closed-loop network configuration based on product life cycle. The International Journal of Advanced Manufacturing Technology, 58(5-8), 791-801.
Amin, S. H., & Zhang, G. (2013). A multi-objective facility location model for closed-loop supply chain network under uncertain demand and return. Applied Mathematical Modelling, 37(6), 4165-4176.
Apaiah, R. K., Linnemann, A. R., & van der Kooi, H. J. (2006). Exergy analysis: A tool to study the sustainability of food supply chains. Food research international, 39(1), 1-11.
Asgharizadeh, E., Torabi, S. A., Mohaghar, A., & Zare-Shourijeh, M. A. (2019). Sustainable Supply Chain Network Design: A Review on Quantitative Models Using Content Analysis. Environmental Energy and Economic Research, 3(2), 143-176.‏
Bonney, M., & Jaber, M. Y. (2011). Environmentally responsible inventory models: Non-classical models for a non-classical era. International Journal of Production Economics, 133(1), 43-53.
Bösch, M. E., Hellweg, S., Huijbregts, M. A., & Frischknecht, R. (2007). Applying cumulative exergy demand (CExD) indicators to the ecoinvent database. The International Journal of Life Cycle Assessment, 12(3), 181.
Bushuev, M. A., Guiffrida, A., Jaber, M. Y., & Khan, M. (2015). A review of inventory lot sizing review papers. Management Research Review. 
Carter, C. R., & Rogers, D. S. (2008). A framework of sustainable supply chain management: moving toward new theory. International journal of physical distribution & logistics management.
Chandra, C., & Grabis, J. (2007). Supply chain configuration. Springer Science+ Business Media, LLC..
Chen, Y., Feng, L., Tang, S., Wang, J., Huang, C., & Höök, M. (2020). Extended-exergy based energy return on investment method and its application to shale gas extraction in China. Journal of Cleaner Production, 120933.
Dehdari Ebrahimi, Z., & Momeni Tabar, M. (2017). Design of Mathematical Modeling in a Green Supply Chain Network by Collection Centers in the Environment. Environmental Energy and Economic Research, 1(2), 153-162.‏
Dincer, I., & Rosen, M. A. (2012). Exergy: energy, environment and sustainable development. Newnes.
Ehrgott, M. (2005). Multicriteria optimization (Vol. 491). Springer Science & Business Media.‏
Elkington, J. (1998). Partnerships from cannibals with forks: The triple bottom line of 21st‐century business. Environmental Quality Management, 8(1), 37-51.
Farahani, R. Z., Rezapour, S., Drezner, T., & Fallah, S. (2014). Competitive supply chain network design: An overview of classifications, models, solution techniques and applications. Omega, 45, 92-118.
Han, Z., & Huo, B. (2020). The impact of green supply chain integration on sustainable performance. Industrial Management & Data Systems.
Hartillo-Hermoso, M. I., Jiménez-Tafur, H., & Ucha-Enríquez, J. M. (2020). An exact algebraic ϵ-constraint method for bi-objective linear integer programming based on test sets. European Journal of Operational Research, 282(2), 453-463.
Javadi, M. A., Hoseinzadeh, S., Khalaji, M., & Ghasemiasl, R. (2019). Optimization and analysis of exergy, economic, and environmental of a combined cycle power plant. Sādhanā, 44(5), 121.
Jawad, H., Jaber, M. Y., & Nuwayhid, R. Y. (2018). Improving supply chain sustainability using exergy analysis. European Journal of Operational Research, 269(1), 258-271. 
Jenkins PR, Lunday BJ, Robbins MJ (2019) Robust, multi-objective optimization for the military medical evacuation location-allocation problem. Omega, 102088.
Mardani, A., Kannan, D., Hooker, R. E., Ozkul, S., Alrasheedi, M., & Tirkolaee, E. B. (2020). Evaluation of green and sustainable supply chain management using structural equation modelling: A systematic review of the state of the art literature and recommendations for future research. Journal of Cleaner Production, 249, 119383.
Massaroni, E., Cozzolino, A., & Wankowicz, E. (2015). Sustainability in supply chain management-a literature review. Sinergie Italian Journal of Management, 98 (Sep-Dec).
Mavrotas, G. (2009). Effective implementation of the ε-constraint method in multi-objective mathematical programming problems. Applied mathematics and computation, 213(2), 455-465.
Mavrotas, G., & Florios, K. (2013). An improved version of the augmented ε-constraint method (AUGMECON2) for finding the exact pareto set in multi-objective integer programming problems. Applied Mathematics and Computation, 219(18), 9652-9669.
Mehrshad, F., Jozi, S. A., Malmasi, S., & Baradaran, V. (2020). Green Supply Chain Management for Condensate Storage Tanks Using Integrated Methods of DEMATEL and ANP (a Case Study of Gas Phases of South Pars Area). Environmental Energy and Economic Research, 4(2), 111-126.‏
Merna, A., & Smith, N. J. (1999, November). Privately financed infrastructure in the 21st century. In Proceedings of the Institution of Civil Engineers-Civil Engineering (Vol. 132, No. 4, pp. 166-173). Thomas Telford-ICE Virtual Library.
Mohammadkhani N, Sedighizadeh M, Esmaili M (2018) Energy and emission management of CCHPs with electric and thermal energy storage and electric vehicle. Therm Sci Eng Progress 8:494–508
Mohebalizadehgashti, F., Zolfagharinia, H., & Amin, S. H. (2020). Designing a green meat supply chain network: A multi-objective approach. International Journal of Production Economics, 219, 312-327.‏
Mota, B., Gomes, M. I., Carvalho, A., & Barbosa-Povoa, A. P. (2018). Sustainable supply chains: An integrated modeling approach under uncertainty. Omega, 77, 32-57.‏
Munasinghe, M., Jayasinghe, P., Deraniyagala, Y., Matlaba, V. J., dos Santos, J. F., Maneschy, M. C., & Mota, J. A. (2019). Value–Supply Chain Analysis (VSCA) of crude palm oil production in Brazil, focusing on economic, environmental and social sustainability. Sustainable Production and Consumption, 17, 161-175.
Musavi M, Bozorgi-Amiri A (2017) A multi-objective sustainable hub location-scheduling problem for perishable food supply chain. Comput Ind Eng 113:766–778.
Özkır, V., & Başlıgil, H. (2013). Multi-objective optimization of closed-loop supply chains in uncertain environment. Journal of Cleaner Production, 41, 114-125.
Peng, H., Shen, N., Liao, H., Xue, H., & Wang, Q. (2020). Uncertainty factors, methods, and solutions of closed-loop supply chain—A review for current situation and future prospects. Journal of Cleaner Production, 254, 120032.‏
Pishvaee, M. S., Torabi, S. A., & Razmi, J. (2012). Credibility-based fuzzy mathematical programming model for green logistics design under uncertainty. Computers & Industrial Engineering, 62(2), 624-632.
Qiu R, Zhang H, Gao X, Zhou X, Guo Z, Liao Q, Liang Y (2019) A multi-scenario and multi-objective scheduling optimization model for liquefied light hydrocarbon pipeline system. Chem Eng Res Des 141:566–579
Razm S, Nickel S, Sahebi H (2019) A multi-objective mathematical model to redesign of global sustainable bioenergy supply network. Comput Chem Eng 128:1–20.
Reimann, M., Xiong, Y., & Zhou, Y. (2019). Managing a closed-loop supply chain with process innovation for remanufacturing. European Journal of Operational Research, 276(2), 510-518.‏
Sazvar Z, Rahmani M, Govindan K (2018) A sustainable supply chain for organic, conventional agrofood products: The role of demand substitution, climate change and public health. J Clean Prod 194:564–583
Sciubba, E., Bastianoni, S., & Tiezzi, E. (2008). Exergy and extended exergy accounting of very large complex systems with an application to the province of Siena, Italy. Journal of environmental management, 86(2), 372-382.
Sciubba, E. (2011). A revised calculation of the econometric factors α-and β for the Extended Exergy Accounting method. Ecological Modelling, 222(4), 1060-1066. 
Shakeri, M., Zarei, A., Azar, A., & Maleki Minbash Razgah, M. (2020). Green Supply Chain Risk Network Management and Performance Analysis: Bayesian Belief Network Modeling. Environmental Energy and Economic Research, 4(3), 165-183.
‏ Stern, N., & Stern, N. H. (2007). The economics of climate change: the Stern review. cambridge University press.
Tautenhain, C. P., Barbosa-Povoa, A. P., & Nascimento, M. C. (2019). A multi-objective matheuristic for designing and planning sustainable supply chains. Computers & Industrial Engineering, 135, 1203-1223.‏
Vafaeenezhad, T., Tavakkoli-Moghaddam, R., & Cheikhrouhou, N. (2019). Multi-objective mathematical modeling for sustainable supply chain management in the paper industry. Computers & Industrial Engineering, 135, 1092-1102.‏
Yousefi, H., Abbaspour, A., & Seraj, H. (2019). Worldwide development of wind energy and co2 emission reduction. Environmental Energy and Economic Research, 3(1), 1-9.‏
Zhou L, Geng N, Jiang Z, Wang X (2018) Multi-objective capacity allocation of hospital wards combining revenue and equity. Omega 81:220–233.