Green Supply Chain Network Design with Economies of Scale and Environmental Concerns

This study considers a design problem in the supply chain network of an assembly manufacturing enterprise with economies of scale and environmental concerns. The study aims to obtain a rational tradeoff between environmental influence and total cost. A mixed-integer nonlinear programming model is de...

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Main Authors: Dezhi Zhang, Fangzi Zou, Shuangyan Li, Lingyun Zhou
Format: Article
Language:English
Published: Wiley 2017-01-01
Series:Journal of Advanced Transportation
Online Access:http://dx.doi.org/10.1155/2017/6350562
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author Dezhi Zhang
Fangzi Zou
Shuangyan Li
Lingyun Zhou
author_facet Dezhi Zhang
Fangzi Zou
Shuangyan Li
Lingyun Zhou
author_sort Dezhi Zhang
collection DOAJ
description This study considers a design problem in the supply chain network of an assembly manufacturing enterprise with economies of scale and environmental concerns. The study aims to obtain a rational tradeoff between environmental influence and total cost. A mixed-integer nonlinear programming model is developed to determine the optimal location and size of regional distribution centers (RDCs) and the investment of environmental facilities considering the effects of economies of scale and CO2 emission taxes. Numerical examples are provided to illustrate the applications of the proposed model. Moreover, comparative analysis of the related key parameters is conducted (i.e., carbon emission tax, logistics demand of customers, and economies of scale of RDC), to explore the corresponding effects on the network design of a green supply chain. Moreover, the proposed model is applied in an actual case—network design of a supply chain of an electric meter company in China. Findings show that (i) the optimal location of RDCs is affected by the demand of customers and the level of economies of scale and that (ii) the introduction of CO2 emission taxes will change the structure of a supply chain network, which will decrease CO2 emissions per unit shipment.
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institution Kabale University
issn 0197-6729
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language English
publishDate 2017-01-01
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series Journal of Advanced Transportation
spelling doaj-art-5f5654c6df404a99a0e314a0e3a46b7e2025-02-03T01:26:33ZengWileyJournal of Advanced Transportation0197-67292042-31952017-01-01201710.1155/2017/63505626350562Green Supply Chain Network Design with Economies of Scale and Environmental ConcernsDezhi Zhang0Fangzi Zou1Shuangyan Li2Lingyun Zhou3School of Traffic & Transportation Engineering, Central South University, Changsha, Hunan 410075, ChinaSchool of Traffic & Transportation Engineering, Central South University, Changsha, Hunan 410075, ChinaSchool of Transportation and Logistics, Central South University of Forestry and Technology, Changsha, Hunan 410004, ChinaSchool of Management Engineering, Huaiyin Institute of Technology, Huaian, Jiangsu 223001, ChinaThis study considers a design problem in the supply chain network of an assembly manufacturing enterprise with economies of scale and environmental concerns. The study aims to obtain a rational tradeoff between environmental influence and total cost. A mixed-integer nonlinear programming model is developed to determine the optimal location and size of regional distribution centers (RDCs) and the investment of environmental facilities considering the effects of economies of scale and CO2 emission taxes. Numerical examples are provided to illustrate the applications of the proposed model. Moreover, comparative analysis of the related key parameters is conducted (i.e., carbon emission tax, logistics demand of customers, and economies of scale of RDC), to explore the corresponding effects on the network design of a green supply chain. Moreover, the proposed model is applied in an actual case—network design of a supply chain of an electric meter company in China. Findings show that (i) the optimal location of RDCs is affected by the demand of customers and the level of economies of scale and that (ii) the introduction of CO2 emission taxes will change the structure of a supply chain network, which will decrease CO2 emissions per unit shipment.http://dx.doi.org/10.1155/2017/6350562
spellingShingle Dezhi Zhang
Fangzi Zou
Shuangyan Li
Lingyun Zhou
Green Supply Chain Network Design with Economies of Scale and Environmental Concerns
Journal of Advanced Transportation
title Green Supply Chain Network Design with Economies of Scale and Environmental Concerns
title_full Green Supply Chain Network Design with Economies of Scale and Environmental Concerns
title_fullStr Green Supply Chain Network Design with Economies of Scale and Environmental Concerns
title_full_unstemmed Green Supply Chain Network Design with Economies of Scale and Environmental Concerns
title_short Green Supply Chain Network Design with Economies of Scale and Environmental Concerns
title_sort green supply chain network design with economies of scale and environmental concerns
url http://dx.doi.org/10.1155/2017/6350562
work_keys_str_mv AT dezhizhang greensupplychainnetworkdesignwitheconomiesofscaleandenvironmentalconcerns
AT fangzizou greensupplychainnetworkdesignwitheconomiesofscaleandenvironmentalconcerns
AT shuangyanli greensupplychainnetworkdesignwitheconomiesofscaleandenvironmentalconcerns
AT lingyunzhou greensupplychainnetworkdesignwitheconomiesofscaleandenvironmentalconcerns