Supply chain network design using a multi-objective approach

What is it about?

This paper develops a supply chain planning model based on a multi-objective framework that considers economic, social and environmental issues. The model is applied to the tilapia pisciculture supply chain in Brazil. A pay-off matrix is derived and an approximation of the Pareto frontier is built using the augmented ε-constraint method. Several non-dominated solutions are generated and analyzed in order to propose the preferable scenarios of supply chain network design.

Featured Image

Why is it important?

This paper provides a specific framework for the design of the tilapia supply chain in Brazil, integrating the three objectives of sustainability. A multi-objective model is developed using mixed-integer programming to optimize the capacity level of a focal industry, the amount of material transported between suppliers and customers at each level of the SC, and the production rate of tilapia and waste. The results show a trend to concentrate supply activity near the focal industry as the environmental objective becomes more important for the decision-maker. The adoption of intermodal transport and the expansion of the markets can improve the economic performance of the supply chain without an increase of environmental impacts and at a low social cost.

Perspectives