Supply chain carbon footprint tradeoffs using simulation

Supply chain design and operational decisions may impact the carbon footprint of the products flowing through. It is a challenge to determine the carbon footprint and even more challenging to understand the impact of design and operational decisions on the footprint. This paper presents a hierarchical simulation-based approach for estimating the carbon footprint of products flowing through a supply chain. Systems Dynamics simulation is used at a high abstraction level to understand the major factors that may affect the carbon footprint. Discrete event simulation is then used to delve down in detail for evaluating the critical stages in the supply chain. A case study for a closed-loop supply chain of forklift brakes is used as an example of implementation of the approach.