journal article·2024-02-01Open access

Mathematical programming model for cost-optimized and environmentally sustainable supply chain design

Ria H. M. Egami

AIP Advances· Volume 14· Issue 2

Abstract

Sustainability is becoming increasingly important as a topic in general supply chains and cold chains. This study addresses the critical need for an integrated and comprehensive approach to supply chain design that simultaneously maximizes cost efficiency and incorporates environmental sustainability, focusing specifically on cold chains. Prior research has identified a gap in existing studies, highlighting the absence of an overarching framework from the logistics providers’ perspective. Our novel mathematical programming model introduces a unique strategy that carefully balances environmental concerns and cost optimization, addressing the shortcomings found in previous works. By integrating variables related to distribution, transportation, and inventory management, the model aims to minimize overall expenses and environmental impact, specifically regarding energy consumption and carbon emissions. We formulate and solve the optimization problem through rigorous mathematical programming, offering a flexible solution applicable to various logistics scenarios. The results demonstrate a significant reduction in overall expenses and environmental effects, providing logistics providers with a powerful tool for informed decision-making and sustainable supply chain management. This research contributes to the evolving field of supply chain sustainability by presenting a practical and effective model for maximizing cost savings while promoting environmental responsibility. The study concludes with compelling statistics, revealing a noteworthy decrease in overall expenses by €25 128 146.73 (100.25%) and environmental impact by 17 359.39 (100.04%). The outcomes show a notable decrease in general expenses and environmental effects, giving logistics providers a strong instrument for wise choices and sustainable supply chain management.
Source: crossref · Quality: baseline

Research context

OpenAlex topics: Sustainable Supply Chain Management · Environmental Impact and Sustainability · Environmental Sustainability in Business

SciVX discovery tags are terminology-based. OpenAlex topics are source-provided classifications.

Affiliations

Department of Mathematics, College of Science and Humanities, Prince Sattam Bin Abdulaziz University , Al-Kharj 16273, Saudi Arabia

Funding

Deanship of Scientific Research, Prince Sattam Bin Abdulaziz University

References (31)

Show source-provided references
1. Sustainable inventory management in supply chains: Trends and further research10.3390/su14052613 ↗
2. A system-wide interdisciplinary conceptual framework for food loss and waste mitigation strategies in the supply chain10.1016/j.indmarman.2020.10.013 ↗
3. A conceptual framework to analyze food loss and waste within food supply chains: An operations management perspective10.3390/su13020927 ↗
4. Improve leakage management to reach sustainable water supply networks through by green energy systems. Optimized case study10.1016/j.scs.2022.103994 ↗
5. Harmonization of green motives and green business strategies towards sustainable development of hospitality and tourism industry: Green environmental policies10.3390/su13126592 ↗
6. Dynamic optimization of fuel and logistics costs as a tool in pursuing economic sustainability of a farm10.3390/su11195463 ↗
7. A blockchain-based framework for green logistics in supply chains10.3390/su12114656 ↗
8. Third-party reverse logistics provider selection: A computational semantic analysis-based multi-perspective multi-attribute decision-making approach10.1016/j.eswa.2020.114051 ↗
9. Harmonizing sustainability, functionality, and cost: Navigating responsible packaging innovations in modern supply chains10.58631/ajemb.v2i8.51 ↗
10. Time evolution of a supply chain network: Kinetic modeling10.1016/j.physa.2022.128085 ↗
11. An analytic model for estimating the economic and environmental impact of food cold supply chain10.3390/su14084771 ↗
12. Transitioning to sustainable freight transportation by integrating fleet replacement and charging infrastructure decisions10.1016/j.omega.2022.102595 ↗
13. Smart waste management system as a sustainable social enterprise model
14. Multi-layer edge resource placement optimization for factories10.1007/s10845-022-02071-3 ↗
15. A multi-objective optimization approach for green and resilient supply chain network design: A real-life case study10.1016/j.jclepro.2020.123199 ↗
16. Toward adaptive infrastructure: Flexibility and agility in a non-stationarity age10.1080/23789689.2017.1416846 ↗
17. A survey on multi-criterion decision parameters, integration layout, storage technologies, sizing methodologies and control strategies for integrated renewable energy system10.1016/j.seta.2022.102246 ↗
18. Pricing and channel coordination in online-to-offline supply chain considering corporate environmental responsibility and lateral inventory transshipment10.3390/math9202623 ↗
19. Study on scheme of outbound railway container organization in rail-water intermodal transportation10.3390/su12041519 ↗
20. D. A. P. Melo , “Towards the conception of a supply chain efficient and sustainable in the aeronautic industry-airbus case study,” Ph.D. thesis, Université Grenoble Alpes, 2020.
21. Integrated cost optimization in a two-stage, automotive supply chain10.1016/j.cor.2015.08.012 ↗
22. Development of a model to optimize the supply chain transportation cost
23. Environmental impacts of cold chain distribution operations: A novel portable refrigerated unit
24. Freight transportation function in supply chain optimization models: A critical review of recent trends10.1016/j.eswa.2013.06.015 ↗
25. Effective cost minimization strategy and an optimization model of a reliable global supply chain system10.5267/j.uscm.2018.12.007 ↗
26. Mathematical programming and solution approaches for transportation optimisation in supply network10.3390/en14217010 ↗
27. Expectation-maximization algorithm of Gaussian mixture model for vehicle-commodity matching in logistics supply chain10.1155/2021/9305890 ↗
28. Considering life cycle greenhouse gas emissions in power system expansion planning for Europe and North Africa using multi-objective optimization10.3390/en14051301 ↗
29. Supply chain joint inventory management and cost optimization based on ant colony algorithm and fuzzy model10.17559/tv-20190805123158 ↗
30. Efficient transportation cost minimization strategies in supply chain management: A comprehensive analysis and optimization framework by using solver methodology and Python programming10.5281/zenodo.8324108 ↗
31. Application of mathematical programming techniques in production planning in the petroleum industry,” in International Journal of Futuristic Innovation in Engine