An integrated location-production-distribution model in the green supply chain considering customer service level

Abstract

Integrated production-distribution planning is one of the main issues in supply chain management that plays an important role in reducing supply chain costs. In addition, choosing optimal location of distribution centers can facilitate achieving this goal. On the other hand, environmental lows and regulations established by governments impose constraints to production and distribution activities and make necessary the adoption of green supply chain approach more than ever.In this paper, a novel model is developed for integrated location-production-distribution planning in a three-echelon green supply chain consisting of manufacturing plants, distribution centers, and customers with multiple products and multiple time periods. The objective function includes minimization of the total supply chain costs as wll as CO2 emissions throughout the chain. Also, the customer demand and service level are expressed as fuzzy Z-number in order to obtain the reliability of the values from the experts. The applicability and efficiency of the proposed model is demonstrated through a real case study considering two indexes of level of customer service and green production and distribution. In order to solve the proposed model, GAMS software package is used. The obtained results show satisfactory performance of the proposed model in reducing costs in the green supply chain.

Keywords

• production-distribution planning location green supply chain customer service level؛ fuzzy z-number