DEVELOPING A ROBUST GREEN SUPPLY CHAIN PLANNING OPTIMIZATION MODEL CONSIDERING POTENTIAL RISKS

Abstract

Planning of the green supply chain has a great effect on its performance and on the environment.
In this paper, a robust green supply chain network planning optimization model has been developed considering
potential risks to identify production, inventory and shipping method. Robustness has been considered in the
customers’ demands of multi-periods. The developed model aims to maximize the supply chain network profit,
maximize customer service level, and minimize the transportation Green House Gases emissions to reduce the
negative risks (threats) on the environment, enhance sustainability and raise the value for money gaining from the
network for all stakeholders. The proposed mathematical model has been formulated using Mixed Integer Linear
Programming and solved using three different solvers; Excel solver, evolver solver and @RiskOptimizer. The
results have been discussed and analyzed in a manner to study the effect of robustness on the supply chain network
behaviour. It can be concluded that the best optimal value has been achieved using Evolver solver plan which is
the smoothest and the most practical.