Bi-objective optimization for sustainable supply chain network design in omnichannel

Abstract

Purpose The purpose of this paper is to design a sustainable supply chain network (SCN) for omnichannel environment in order to provide better service to customers through flexible distribution. Thus, there is a need to incorporate multiple-channel distribution in the network design of supply chains (SCs). Design/methodology/approach A multiple-channel distribution supply chain network (MCDSCN) has been proposed under omnichannel environment. This proposed model integrates online giants with local retailer’s distribution network in an uncertain environment with sustainability. To incorporate sustainability, an objective function is added to reduce carbon content along with other objectives of minimization of SC cost. The model turns out to be mixed-integer linear programming model which is coded in GAMS and solved using CPLEX solver. Findings The proposed MCDSCN model is compared with conventional SCN. Furthermore, it was found that the proposed MCDSCN model has achieved significant saving in SC cost and is also more sustainable than conventional SCN. The proposed model also enables online giants to integrate their distribution network with local retailer’s distribution network. Practical implications Through proposed model, customers are free to access product and services as per their choice of channels which increases their convenience, reach and satisfaction. Originality/value The proposed MCDSCN model is a novel approach to design flexible distribution systems. This would significantly help organizations to design their distribution network more effectively to meet global competition.