Abstract
This study considers a design problem in the supply chain network of an assembly manufacturing enterprise with economies of scale and environmental concerns. The study aims to obtain a rational tradeoff between environmental influence and total cost. A mixed-integer nonlinear programming model is developed to determine the optimal location and size of regional distribution centers (RDCs) and the investment of environmental facilities considering the effects of economies of scale and CO2 emission taxes. Numerical examples are provided to illustrate the applications of the proposed model. Moreover, comparative analysis of the related key parameters is conducted (i.e., carbon emission tax, logistics demand of customers, and economies of scale of RDC), to explore the corresponding effects on the network design of a green supply chain. Moreover, the proposed model is applied in an actual case—network design of a supply chain of an electric meter company in China. Findings show that (i) the optimal location of RDCs is affected by the demand of customers and the level of economies of scale and that (ii) the introduction of CO2 emission taxes will change the structure of a supply chain network, which will decrease CO2 emissions per unit shipment.
Highlights
The current problem regarding supply chains has attracted the attention of several production companies due to the increasing use of e-commerce
The results show that the average construction cost per unit area for a logistics park decreases as the size of Distribution centers (DCs) increases
We vary the ratio of the carbon tax for comparing the total cost, selection of regional distribution centers (RDCs) and warehouses, and purchasing equipment in plant location to test the behavior of the algorithm of the optimal network design
Summary
The current problem regarding supply chains has attracted the attention of several production companies due to the increasing use of e-commerce. Harris et al [32] solved the capacitated facility location problem based on a multiobjective algorithm using the Lagrangian relaxation, in which the financial cost and CO2 emissions are considered They proposed a hybrid multiobjective approach for capacitating a facility location with flexible store allocation for green logistics modeling [33]. We develop a MINLP model of a network problem for a green supply chain This model aims to minimize total logistics cost, which covers the fixed cost of RDCs, environmental facility and operating costs, and CO2 emission costs. (1) A MINLP model of the network design problem for a supply chain is presented, which considers multimodal transportation, CO2 emissions taxes, and investment of environmental facility.
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