Proposing Model for Master Planning of Sustainable Supply Chain with Considering Integration of Physical and Financial Flow

Abstract

Balance growth in economic, social and environmental dimensions, and integrity of financial and physical flow of supply chain can ensure long-term success of any supply chain. Therefore, an integrated financial-physical planning model for closed-loop sustainable supply chain is proposed in this paper. Objectives of proposed model are maximizing profit, minimizing environmental and social effects and minimizing deviation of financial indicators from desired values. In order to cope with multi-objective nature of the problem, goal programming approach is implemented. Proposed model encompasses production, distribution and collection plan which is implemented in a real case in plastic recycling industry. Results of research prove effectiveness of considering financial indicators in economic performance of sustainable closed-loop supply chain, but reduce its performance in environmental and social dimensions. As a result, it can be articulated that financial-physicalintegration of supply chain master plan, improves economic dimension of supply chain.

Keywords

• sustainable supply chain
• supply chain master planning
• financial flow
• goal programming
• plastic recycling industry