Bi-objective Problem of Material-based GreenHouse Gas Emission and Costs by Global Supply Chain Network Disruption across TPP countries during COVID-19

Abstract

A global supply chain is affected by many factors, such as disruption, customs duty, economic partnership agreements, and requirements for the reduction of GreenHouse Gas (GHG) emission. COVID-19 has caused a negative impact on the global supply chain. A sustainable supply chain needs to reduce GHG emission. However, GHG emission varies across countries because of the energy mix. Therefore, the impact of disruption and different GHG emission levels should be considered in a global supply chain design. Moreover, a global supply chain is influenced by customs duty and Trans-Pacific Partnership, which is a free trade agreement. This study models and formulates a global supply chain network including disruption, material-based GHG emission, customs duty, and TPP to minimize the total cost and total GHG emission by integer programming with ε constraint. The result of the numerical experiments indicates that the nationalization of a factory in a developed country is effective in reducing GHG emission to avoid disruption in the middle GHG emission country in a global supply chain. Additionally, it is found that there is no trade-off relationship between disruption effect and reducing total GHG emission, Though, there is a trade-off relationship between total cost and total GHG emission in the experiment.