Environmentally conscious long-range planning and design of supply chain networks

In this paper, a mathematical programming-based methodology is presented for the explicit inclusion of life cycle assessment (LCA) criteria as part of the strategic investment decisions related to the design and planning of supply chain networks. By considering the multiple environmental concerns together with the traditional economic criteria, the planning task is formulated as a multi-objective optimization problem. Over a long-range planning horizon, the methodology utilizes mixed integer modelling techniques to address strategic decisions involving the selection, allocation and capacity expansion of processing technologies and assignment of transportation links required to satisfy the demands at the markets. At the operational level, optimal production profiles and flows of material between various components within the supply chain are determined. As such, the formulation presented here combines the elements of the classical plant location and capacity expansion problems with the principles of LCA to develop a quantitative decision-support tool for environmentally conscious strategic investment planning.