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A robust optimization approach for designing an environmentally conscious supply chain with consideration of customer‐specific environmental product requirements

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Supply Management Research

Part of the book series: Advanced Studies in Supply Management ((ASSM))

Abstract

Companies are increasingly forced to (re‐)design their supply chain networks according to sustainable requirements of various stakeholders. Not considering these requirements might lead to losing reputation and therefore lower revenues. In this paper, we focus on customers´ requirements regarding the environmental impact of products. We analyze how companies could improve the environmental performance of a product at the supply chain design stage. Therefore, we propose a mixed‐integer linear programming supply chain design model. According to the long‐term planning environment of supply chain design decisions, we assume an uncertain shape of environmental requirements and the product price. To capture this uncertainty, we use a robust optimization approach. A company can improve the sustainable performance of the products sold and comply with customers´ environmental requirements by designing an environmentally conscious supply chain. A numerical example presents the basic advantages of our approach.

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Correspondence to Michael Altmann .

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Altmann, M. (2014). A robust optimization approach for designing an environmentally conscious supply chain with consideration of customer‐specific environmental product requirements. In: Bogaschewsky, R., Eßig, M., Lasch, R., Stölzle, W. (eds) Supply Management Research. Advanced Studies in Supply Management. Springer Gabler, Wiesbaden. https://doi.org/10.1007/978-3-658-06200-2_8

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  • DOI: https://doi.org/10.1007/978-3-658-06200-2_8

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  • Publisher Name: Springer Gabler, Wiesbaden

  • Print ISBN: 978-3-658-06199-9

  • Online ISBN: 978-3-658-06200-2

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