A Multiobjective Optimization Model in Automotive Supply Chain Networks

Abdolhossein Sadrnia,Norzima Zulkifli,M. K. A. Ariffin,Hamed Mirabi,Napsiah Ismail,Hossein Nezamabadi-pour

doi:10.1155/2013/823876

Abstract

In the new decade, green investment decisions are attracting more interest in design supply chains due to the hidden economic benefits and environmental legislative barriers. In this paper, a supply chain network design problem with both economic and environmental concerns is presented. Therefore, a multiobjective optimization model that captures the trade-off between the total logistics cost and CO2emissions is proposed. With regard to the complexity of logistic networks, a new multiobjective swarm intelligence algorithm known as a multiobjective Gravitational search algorithm (MOGSA) has been implemented for solving the proposed mathematical model. To evaluate the effectiveness of the model, a comprehensive set of numerical experiments is explained. The results obtained show that the proposed model can be applied as an effective tool in strategic planning for optimizing cost and CO2emissions in an environmentally friendly automotive supply chain.

Highlights

In conventional supply chain management, the emphasis of the supply chain network is usually a single objective, such as profit maximization or cost minimization
Attention must be given to the greenhouse gases that are increasingly facilitated by global warming, and which are the result of human activities since the industrial revolution
We set up a bi-objective optimization model and conducted a case analysis based on a network consisting of the following: the three groups of tier-1 suppliers which include 17, 22, and 17 tier-1 suppliers in each group, respectively; the 9 potential locations for establishing the manufacturer; the 23 potential locations for establishing the distribution centres; the 47 retailers; the three trucks type, including a new 12-ton truck, an 8-ton truck and an old 12-ton truck

Summary

Introduction

In conventional supply chain management, the emphasis of the supply chain network is usually a single objective, such as profit maximization or cost minimization. Despite waterway pollution and the massive loss of biodiversity, global warming and carbon dioxide (CO2) emissions are considered to be the types of environmental impacts that have to be considered with regard to the coordinated activity of organizations in a supply chain. Attention must be given to the greenhouse gases that are increasingly facilitated by global warming, and which are the result of human activities since the industrial revolution. The situation is that global CO2 emissions have increased by about 80% during the period of 1970–2004, mainly as a result of using fossil fuels [1]. The distances between facilities in a distribution network have grown dramatically due to the globalisation of supply chains, which leads to increased vehicle emissions as part of transportation. The planning of a logistics network requires making decisions regarding the followings [4]:

Methods

Results

Conclusion