Robust Optimization Model for Sustainable Supply Chain Design Integrating LCA

Abstract

Supply chain management is the basis for the operations in an organization. The development of realistic supply chain designs that work effectively in the presence of disturbances in a stochastic environment and incorporate sustainability factors, is a complex challenge being investigated in recent years. However, the inclusion of a methodological structured framework to evaluate environmental impacts constitutes a knowledge gap in the literature on supply chain design. This study developed a model for sustainable supply chain design, integrating Life Cycle Assessment and based on a robust optimization approach. The study follows a 4-stage methodology beginning with data collection and the execution of a Life Cycle Assessment. Then, the deterministic modeling is proposed, concluding with a robust model. A bi-objective model is proposed to maximize utility and minimize environmental impact based on demand scenarios. The model was validated with real data from a medium-sized enterprise that produces antibacterial gel, generating as a result, different configuration alternatives for the supply chain to transport the products and raw materials between its elements. The conclusions of this work highlight the importance of including sustainability factors during supply chain design, the consequences and costs of its inclusion, as well as the priority actions that promote sustainable designs.