GENERAL ARTICLE

 

Applying mixed integer programming for green supply chain management

 

 

A. Sadegheih^I; D. Li^II; S. Sribenjachot^III; P.R. Drake^IV

^IDepartment of Industrial Engineering, Yazd University, Yazd, Iran sadegheih@vazduni.ac.ir
^IIOperations Management and e-Business Group Division, University of Liverpool, Management School, Liverpool, UK dong@liverpool.ac.uklll
^IIIOperations Management and e-Business Group Division, University of Liverpool, Management School, Liverpool, UK nnicky2@hotmail.com
^IVOperations Management and e-Business Group Division, University of Liverpool, Management School, Liverpool, UK Drake@liverpool.ac.uk

 

 

---

ABSTRACT

This paper aims to guide those in supply chain management who make decisions on selecting factories, transportation modes, and the number of products to be manufactured. Solutions can be found through development of an optimisation model, using mixed-integer programming. Because green supply chain issues have become important, and new legislation has to be taken into account, carbon emissions costs must be included in the total costs of the supply chain, as in the optimisation model presented, which then has the ability to minimise total costs and to provide solutions that are both cost-effective and environmentally friendly.

---

OPSOMMING

Die doel van hierdie artikel is om leiding te verskaf aan diegene in voorsieningsketting-bestuur wat besluite neem aangaande die keuse van fabrieke, vervoermetodes en die aantal produkte om te vervaardig. Oplossings kan gevind word by wyse van 'n optimiseringsmodel wat gemengde-heeltalprogrammering gebruik. Aangesien "groen" of te wel omgewingsvriendelike aspekte belangrik geword het en nuwe wetgewing in ag geneem moet word, moet die koste van koolstofemissies in die totale koste van die voorsieningsketting in berekening gebring word, soos wat in die optimiseringsmodel wat voorgehou word inderdaad gebeur. Sodoende kan 'n oplossing gevind word wat nie alleen koste-effektief is nie, maar ook omgewingsvriendelik.

---

 

 

“Full text available only in PDF format”

 

 

REFERENCES

[1] Decanio, S.J. 1992. International cooperation to avert global warming: Economic growth, carbon pricing, and energy efficiency, The Journal of Environment and Development, 1, pp 41-62.         [ Links ]

[2] Metcalf, G.E. 2007. Corporate tax reform paying the bills with a carbon tax, Public Finance Review, 35, pp 440-459.         [ Links ]

[3] Lutter, R. & Shogren, J.F. 2002. Tradable permit tariffs: How local air pollution affects carbon emissions permit trading, Land Economics, 78, pp 159-170.         [ Links ]

[4] Babiker, M.H., Criqui, P., Ellerman, A.D., Reilly, J.M. & Viguier, L.L. 2003. Assessing the impact of carbon tax differentiation in the European Union, Environmental Modelling and Assessment, 8, pp 187-197.         [ Links ]

[5] Herber, B.P. & Raga, J.T. 1995. An international carbon tax to combat global warming: An economic and political analysis of the European Union proposal, The American Journal of Economics and Sociology, 54, pp 257-267.         [ Links ]

[6] Spru, S.S. 2003. Carbon trading in the policy mix, Oxford Review of Economic Policy, 19, pp 420-437.         [ Links ]

[7] Monni, S., Syri, S., Pipatti, R. & Savolainen, I. 2007. Extension of EU emissions trading scheme to other sectors and gases: Consequences for uncertainty of total tradable amount, Water Air and Soil Pollution: Focus, 7, pp 529-538.         [ Links ]

[8] Reilly, J., Mayer, M. & Harnisch, J. 2002. The Kyoto Protocol and non-CO₂ greenhouse gases and carbon sinks, Environmental Modelling and Assessment, 7, pp 217-229.         [ Links ]

[9] Dumanski, J. 2004. Carbon sequestration, soil conservation, and the Kyoto Protocol: Summary of implications, Climatic Change, 65, pp 255-261.         [ Links ]

[10] Clémençon, R. 2008. The Bali road map: A first step on the difficult journey to a Post-Kyoto Protocol agreement, The Journal of Environment Development, 17, pp 70-94.         [ Links ]

[11] Bohringer, C. 2003. The Kyoto Protocol: A review and perspectives, Oxford Review of Economic Policy, 19, pp 451-466.         [ Links ]

[12] Parry, I.W.H. 2003. Fiscal interactions and the case for carbon taxes over grandfathered carbon permits, Oxford Review of Economic Policy, 19, pp 385-399.         [ Links ]

[13] Helm, D., Hepburn, C. & Mash, R. 2003. Credible carbon policy, Oxford Review of Economic Policy, 19, pp 438-450.         [ Links ]

[14] Callan, T., Lyons, S., Scott, S., Tol, R.S.J. and Verde, S. 2009. The distributional implications of a carbon tax in Ireland, Energy Policy, 37, pp 407-412.         [ Links ]

[15] Keppens, M. & Vereeck, L. 2003. The design and effects of a tradable fuel permit system, Association for European Transport, presented at the European Transport Conference.         [ Links ]

[16] Watters, H. & Tight, M. 2007. Designing an emissions trading scheme suitable for surface transport, Institute for Transport Studies, Faculty of Environment, University of Leeds.         [ Links ]

[17] Kengpol, A. 2008. Design of a decision support system to evaluate logistics distribution network in Greater Mekong Sub-region countries, International Journal of Production Economics, 115, pp 388-399.         [ Links ]

[18] Ma, H. & Suo, C. 2006. A model for designing multiple products logistics networks, International Journal of Physical Distribution & Logistics Management, 36, pp 127-135.         [ Links ]

[19] Chopra, S. & Meindl, P. 2007. Supply chain management strategy: Planning and operations. 3^rd ed., Pearson Education, Inc., New Jersey.         [ Links ]

[20] Canel, C. & Khumawala, B.M. 1996. A mixed-integer programming approach for the international facilities location problem, International Journal of Operations & Production Management, 16, pp 49-68.         [ Links ]

[21] Ostermark, R. 2007. A flexible platform for mixed-integer non-linear programming problems, Kybernetes, 36, pp 652-670.         [ Links ]

[22] UNEP and UNCTAD. 2003. An emerging market for the environment: A guide to emissions trading, UNEP Collaborating Centre on Energy and Environment (UCCEE).         [ Links ]

[23] Dobes, L. 1998. Tradable permits in transport, Conference on 'Kyoto - the Impact on Australia', Australian APEC Study Centre, Melbourne.         [ Links ]

[24] Watters, H. 2005. Tradable carbon permits: Reducing CO₂ from the transport sector, Presentation at European Transport Conference, Strasbourg.         [ Links ]

[25] Starkey, R. & Anderson, K. 2005. Domestic tradable quotas: A policy instrument for reducing greenhouse gas emissions from energy use, Tyndall Technical Report 39, Tyndall Centre for Climate Change Research.         [ Links ]

[26] Waters, D. 2007. Global logistics: News directions in supply chain management, 5^th ed., Kogan Page Limited, London.         [ Links ]

[27] Wadud, Z., Noland, R.B. & Graham, D.J. 2008. Analysis of personal tradable carbon permits for the road transport sector, Environmental Science & Policy, 11, pp 533-544.         [ Links ]

[28] Raux, C. 2004. The use of transferable permits in transport policy, Transportation Research Part D, 9, pp 185-197.         [ Links ]

[29] Angell, L.C. and Klassen, R.D. 1999. Integrating environmental issues into the mainstream: An agenda for research in operations management, Journal of Operations Management, 17, pp 575-598.         [ Links ]

[30] Robert, L. & Bradley, R.L. 2003. Climate alarmism reconsidered, Institute of Economic Affairs, London.         [ Links ]

[31] Sadegheih, A. 2010. A novel formulation of carbon emissions costs for optimal design configuration of system transmission planning, Renewable Energy, 35, pp. 1091-1097.         [ Links ]

 

 

* Corresponding author