Optimisation of multi‐tier supply chain distribution networks with corporate social responsibility concerns in fast‐fashion retail

Abstract

AbstractThis study analyses the problem of multi‐tier supply chains, including suppliers, producers, wholesalers, and retailers. Decision‐makers should analyse the social, environmental, and economic constraints in a multi‐dimensional business context. We analyse these issues by considering the corporate social responsibility (CSR) concerns. A scorecard‐based mathematical model, consisting of mixed‐integer linear programming, is developed to assist fast‐fashion decision‐makers in supply chain policy formulation. The model is validated through a practical case study using IBM CPLEX Optimizer. The results indicate that involving the social aspect can increase the profit compared to considering only the economic impact, under high environmental costs with low return on investment. Furthermore, the mathematical model is able for the case study to optimise the distribution network of the entire multi‐tier supply chain, considering CSR concerns, in less than 5 s. This research has implications for the advancement of multi‐tier supply chain optimisation and provides a basis for future distribution decisions for firm stakeholders.