A resilient and sustainable supply chain network design: a case study in beverage industry


Parhazeh S., Torabzadeh S. A., Rabbani M., AGHSAMI A.

Environment, Development and Sustainability, 2024 (SCI-Expanded) identifier

  • Publication Type: Article / Article
  • Publication Date: 2024
  • Doi Number: 10.1007/s10668-024-05783-z
  • Journal Name: Environment, Development and Sustainability
  • Journal Indexes: Science Citation Index Expanded (SCI-EXPANDED), Scopus, International Bibliography of Social Sciences, PASCAL, ABI/INFORM, Agricultural & Environmental Science Database, Aquatic Science & Fisheries Abstracts (ASFA), BIOSIS, Business Source Elite, Business Source Premier, CAB Abstracts, Geobase, Greenfile, Index Islamicus, Pollution Abstracts, Veterinary Science Database, Civil Engineering Abstracts
  • Keywords: Beverage, Resilience, Supply chain network design, Sustainability
  • Ankara Yıldırım Beyazıt University Affiliated: Yes

Abstract

The beverage market in Iran has witnessed a surge in competition as renowned brands have entered the industry in recent years. This heightened competition underscores the significance of developing a competent and well-designed supply chain network (SCN). Furthermore, the prevalence of ecological and societal concerns in recent years has significantly amplified the urgency to adopt sustainable practices. Therefore, this study creates a mathematical framework to design a Resilient and Sustainable Supply Chain Network (RSSCN) for the beverage industry based on a real case study. A Multi-Objective Mixed -Integer Linear Programming (MOMILP) model is created to address the location-allocation-inventory decisions within the proposed SCN. The problem encompasses a range of multiple decisions, encompassing the site of factories and Distribution Centers (DCs) to be founded, managing the material flow across the system, deciding on inventory level and shortages, and assigning established centers to each other. The model was addressed employing the Epsilon-Constraint Method (ECM) to handle the multiple objectives of sustainable development, which include reducing overall expenses, lowering CO2 emissions, and increasing total employment opportunities simultaneously. Finally, conducting multiple sensitivity analyses provided several managerial insights that helped mangers make informed decisions. According to the sensitivity analysis, the implementation of backup supplier strategy significantly reduced total cost under disruption risk, demonstrating the credibility and effectiveness of this method.