Suppliers’ coalition strategy for green-Resilient supply chain network design

Abstract

ABSTRACT Risk mitigation strategies have an environmental effect besides their economic benefits. The current research investigates designing a green-resilient supply chain network under the risk of disruptions. A new risk mitigation strategy namely “coalition” is applied between suppliers in a bi-objective mixed-integer linear programming model to minimize total cost and carbon emissions, simultaneously. Along with the coalition strategy between suppliers, the multi-sourcing strategy in the downstream supply chain is applied for retailers. The performance of the coalition strategy is compared with the three reputable risk mitigation strategies in both single-source and multi-source retailers. Results revealed that the average total cost and total carbon emissions of the green-resilient model have been reduced by 14% and 3.6% compared to the non-resilient model, respectively. Besides, multiple-sourcing for retailers has no improvement in the non-resilient model. On the contrary, the economic and environmental performance of the resilient model varies for the different number of sources.