Building A Green Closed-Loop Supply Chain: A Case Study Of Hoang Nam Production Co.,LTD

Abstract

For the past decade, supply chain network has been significantly influenced by many major factors. Standing out of those is global warming, which causes the traditional supply chain network to thoroughly change. Hence, environmental vulnerability with other aspects like legality and economic benefit have made supply chain management an important objective for companies and governments. Therefore, sustainability must be made in supply chain network design (SCND), by creating balance between minimizing cost and environment preservation. This paper aims to propose a bi – objective mathematical model to consolidate the flows of the supply chain in order to minimize operating cost and reduce the CO2 emission. Transportation cost, fixed cost, operating cost, … and other environmental effect on the chain are also considered. IBM ILOG CPLEX Optimization Studio and Multiple criteria decision analysis methods are used to solve the model. The simulated result will demonstrate the efficiency and validity of the proposed model and solution method.