A multi-objective optimization approach for sustainable supply chains incorporating business strategy

Abstract

Sustainability is a necessity in the design and operation of supply chains. the triple bottom line (TBL) accounting of sustainability needs to incorporate economic, environmental and social pillars simultaneously in the decision making process. the business strategy can be developed to promote sustained growth, Also incorporating in the supply chain management issues as a business strategy rather than philanthropy. Deciding on the location of business facilities, supplier-manufacturer network, manufacturer-demand location network and the supplier- manufacturer relation strategy are among the important decisions in business strategy and supply chain management. However, there is a lack of theoretical work which analyzes the business strategy together with TBL concept of sustainability for the supply chain network design problem. in this paper, A methodological approach based on mathematical programming is proposed that conforms to the TBL accounting for supply chain network design problem from suppliers to customers embedded with business strategy and green energy usage option. a realistic case study is applied to the model. the results show that working with inclusive suppliers and using green energy are preferred with highest profit value.