Sustainable procurement and logistics for disaster resilient supply chain

Abstract

Environmental disaster and rapid climate change cautioned government bodies and environmental protection agencies, which resulted in legislations forcing business organizations to restrict their carbon emissions to make their supply chain a disaster resilient supply chain. In supply chain, carbon emissions are seen right away from the procurement of raw materials till the distribution of finished goods through logistics. Hence, there is strong need to fix carbon emissions and to make existing supply chain an environmentally sustainable supply chain to gain environmental disaster relief. This paper primarily focuses on minimizing carbon emissions in the raw material procurement and its logistics using a cap-and-trade method. In the raw material procurement and logistics, the carbon emission is caused during the ordering, transporting and holding the procured items from various suppliers. The paper aims to model sustainability-resilience link at the supply chain design level through the procurement and logistics of raw material which is considered as the primary stage of any supply chain. A dynamic non-linear mixed integer model featuring an environmental sustainability through cap-and-trade method of carbon emission is proposed that can be used to design sustainable procurement logistics for disaster resilient supply chain management. The proposed model in the paper is referred as SPL_DRSCM (sustainable procurement and logistics for disaster resilient supply chain management) and is validated through illustrations. Important useful managerial and practical insights are obtained from set of five different deterministic data sets. Proposed model for SPL_DRSCM MINLP shows significant cost saving while optimizing procurement and its logistics under carbon emission constraint. Comparative analysis is conducted and detailed numerical results are presented.