Supply Chain Design Optimization within Planetary Boundaries

Abstract

The recently emerged Planetary Boundaries framework establishes global limits to human activities in order to avoid highly deleterious events that could shift the current state of the Earth. Here, for the first time we address the strategic design of sustainable supply chains (SCs) considering their absolute sustainability level using PBs. To this end, an MILP model is developed where the mass and energy flows of the network are linked to PBs, thereby enabling the maximization of their absolute environmental sustainability. To illustrate our approach, we studied the supply of sugarcane-based bioethanol in Argentina, considering local policies seeking to increase the gasoline-ethanol blend from 12% to 20% in the upcoming years. We found that none of the SC configurations can meet the eight downscaled PBs concurrently, although their transgression would be reduced significantly in the optimal solution. Our results highlight the need for incorporating PBs in the design of sustainable SCs in a globalized world.