An integrated supply chain problem with environmental considerations

Ali Diabat, Mohammed Al-Salem

    Research output: Contribution to journalArticle

    Abstract

    The continuous rise in environmental awareness has affected several aspects of the global economy, including supply chain management. Traditionally, supply chains are designed and operated in a way that minimizes costs and increases profitability; however, this is not sufficient nowadays. It is of crucial importance to incorporate the target of emissions reduction in the supply chain. Thus, in the current paper we address a joint location-inventory problem and extend it to account for the reduction of carbon emissions. The original problem consists of one plant, multiple distribution centers (DCs) and multiple retailers, with products flowing from a plant to DCs and from there to retailers. We also account for uncertainty by including a new variable that reflects the probability of different demand scenarios. In terms of the solution technique, we develop a Genetic Algorithm (GA) and justify our choice of this heuristic approach by the fact that the resulting model is high in complexity and requires solving within reasonable time. We test the GA with a thorough sensitivity analysis using several chromosome representations, different mutation and crossover probabilities, as well as different evaluation functions. Finally, we validate the accuracy of our GA on small instances that have been solved to optimality using GAMS.

    Original languageEnglish (US)
    Pages (from-to)330-338
    Number of pages9
    JournalInternational Journal of Production Economics
    Volume164
    DOIs
    StatePublished - Jan 1 2015

    Fingerprint

    Supply chains
    Genetic algorithms
    Function evaluation
    Supply chain management
    Chromosomes
    Sensitivity analysis
    Profitability
    Carbon
    Integrated supply chain
    Genetic algorithm
    Costs
    Supply chain
    Distribution center
    Retailers
    Uncertainty
    Optimality
    Heuristics
    Global economy
    Crossover
    Carbon emissions

    Keywords

    • Carbon emission
    • Environmental consideration
    • Genetic algorithms
    • Green supply chain
    • Integer programming
    • Stochastic demand
    • Sustainable supply chain

    ASJC Scopus subject areas

    • Business, Management and Accounting(all)
    • Economics and Econometrics
    • Management Science and Operations Research
    • Industrial and Manufacturing Engineering

    Cite this

    An integrated supply chain problem with environmental considerations. / Diabat, Ali; Al-Salem, Mohammed.

    In: International Journal of Production Economics, Vol. 164, 01.01.2015, p. 330-338.

    Research output: Contribution to journalArticle

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