Achieving Robustness and Eco-Efficiency in Sustainability for A Distribution Network

Abstract

Abstract-This study investigates managerial insights to facilitate the robust construction of a responsive and sustainable supply chain network. The two goals typically contradict each other because a fast, responsive supply chain may consume sizable resources. A fully optimized supply chain, which operates at minimal cost, may not honor the two indicators simultaneously. Through a mathematical programming model assessing the necessary cost of a supply chain, this study argues that such a dilemma can be reconciled by reallocating stocking items across warehouse locations. Instead of designing an ultimate network to optimize responsiveness and eco-efficiency, the model merely serves as a vehicle for estimating the cost of implementing a nominal supply chain. In the process, the interaction between two performance indicators is clarified. The distribution responsiveness and eco-efficiency indicators comprise stock distribution, transportation link diversity, service level, and life cycle assessment. Understanding the relation between these two indicators helps to determine a cost-effective configuration which achieves eco-efficiency without sacrificing responsiveness.