Low carbon supply chain configuration for a new product – a goal programming approach

Abstract

Green supply chain management and product innovation both have become sources of competitive advantage for companies from different industries. However, research on the configuration of green supply chains for new products represents a comparably new trend. In this paper, a goal programming approach is suggested to optimise the supply chain (SC) configuration for a new consumer product under consideration of economic and environmental criteria. The approach is illustrated by the case example of a fast moving consumer goods manufacturer. In this context, trade-offs between the ecologic factor of carbon emission, on the one hand, and financial value creation and customer service level on the other hand, are assessed in the deterministic analyses. The influence of long-term demand uncertainties is modelled in a scenario approach. It is observed that decentralised SC configurations enable carbon emission reduction without deteriorating the economic SC performance. Furthermore, it is detected that a focused economic optimisation strongly amplifies negative environmental impacts of demand uncertainties.

Literature Review

“…Accounting for multiple objectives is achieved using various modeling techniques including multi-objective programming and simulation. The relative importance of the globalization aspects has decreased while the number of papers devoted to environmental aspects and reverse (5) Altmann (2014), Brandenburg (2015), Cui (2015), Klibi and Martel (2012) Note: The number of papers for each specific problem is given in parenthesis. See key from Table 3.1 for abbreviations 3.4 Focus Areas for Supply Chain Configuration (7) Brandenburg (2015), Castellano et al (2013), Petridis (2015), Tian and Yue (2014), Tiacci et al (2014), You and Grossmann (2008), Zokaee et al (2014) ENV (9) Altmann ( (7) Baghalian et al (2013), Bassett and Gardner (2013), Habermann et al (2015), Hearnshaw and Wilson (2013), Klibi and Martel (2012), Madadi et al (2014), Mizgier et al (2015) RL (12) Amin and Zhang (2012), Chaabane et al (2012), Das and Rao Posinasetti (2015), Ghayebloo et al (2015), Kara and Onut (2010), Metta andBadurdeen (2013), Quariguasi Frota Neto et al (2008), Ramezani et al (2013), Ramezani et al (2014), Santibanez-Gonzalez and, Soleimani et al (2013), Vahdani and Naderi-Beni (2014) RP (6) Akanle and Zhang (2008), Bottani andMontanari (2010), Cheung et al (2012), …”

Mathematical Programming Approaches

“…Other multi-objective supply chain configuration models have been developed by Li and O'Brien (1999), Sabri and Beamon (2000), Talluri and Baker (2002), Brandenburg (2015) and Das and Rao Posinasetti (2015) (see Chap. 3).…”

Green manufacturing supply chain design and operations decision support

“…The outcome of this review indicates that the green supply chain research field is growing and there is a need for integrated performance frameworks with new generation decision support tools incorporating TBL approach for managing sustainable supply chains. Brandenburg (2015) in his article titled 'Low carbon supply chain configuration for a new product -a goal programming approach', a goal programming model is suggested to optimise the supply chain configuration for a new consumer International Journal of Production Research 3 product under consideration of economic and environmental criteria. The model is applied to a case example of a fast-moving consumer goods manufacturer.…”